April 2021 Newsletter

4967 Chehalis Ct N, Keizer OR

Triplex | $459,900 | April 2, 2021

Amazing deal on a triplex! Each unit features a single car garage, fenced courtyard patio, and in unit washer/dryer hookups. Listing description indicates that this property has been well cared for and has had many updates including a newer roof. Rents are likely below market so there is an opportunity to raise rents to maximize cashflow.

Unit Mix: Three 2 bed/1 bath units

Total Sq Ft: 2439 (813 sq ft per unit)

Lot Size: 0.27 Acre

Year Built: 1971

Recent Updates: Newer roof and other updates not specified

Property Taxes: $4,148.61 (2020)

What I love about this property

  • This triplex has the look and feel of a duplex so the units should rent for about the same as a duplex.

  • Single car garage and fenced patio for each unit

  • Walking distance to schools, Safeway, local restaurants etc.

  • Easy rental market - easy to find good quality tenants and vacancy rates are extremely low

Financial Analysis

Conservative Assumptions Made:

  • Total monthly rent $3750: each unit rents at $1250/month

  • Landlord Paid Utilities $300 a month for water and sewer ($100 per unit)

  • Conventional loan with 25% down payment @ 4% interest rate

  • Property Management 8%; Vacancy, CapEx, Maintenance: 5% each

Keizer Triplex April 2 2021 Calculation

About the City of Keizer

  • Keizer OR is home to the 2nd In-N-Out burger restaurant in Oregon! (In-N-Out burgers are a big deal here! Average wait time is well over an hour and there's even a Facebook page dedicated to the wait times here)

  • Keizer sits just northwest of Salem (Oregon's state capital) and shares the same school district as Salem (Salem-Keizer Public Schools)

  • Close proximity to interstate I-5 makes this an ideal location for those who need to commute to Portland for work but can not afford to live in Portland

Suggested Information to Verify (Buyer to do due diligence)

  • Always do your own research and analysis on properties!

  • Gather information about current rents and lease terms. Current tenants are likely paying below market rent.

  • Research on the Oregon Landlord Tenant laws and raise rents in accordance to the law or consult a real estate professional (e.g. Property Manager)

  • Verify who pays what utilities. It is likely that the owner pays for water/sewer bill because most multifamily homes bigger than a duplex do not have separate water meters. Owner may also be responsible for landscaping and trash pickup.

  • If the buyer is purchasing this as an owner occupied property, find out if the owner is willing to give notice to one of the tenants to vacate. This is usually a 90 day notice under current Oregon Law.

  • Research on local property management companies if you wish to have it professionally managed

Sources