july 2021 Newsletter
1435 Summer (-1455) St NE, Salem OR
Triplex | $555,000 | July 28, 2021
Triplex near downtown Salem that consists of a house + duplex with alley access and off street parking
Unit Mix: 1 detached 3 bed 2 bath house and 2 duplex units 2 bed 1 bath each
Total Sq Ft: 3860. Main house is 1358 and duplex units are around 600 sq ft each
Lot Size: 0.28 Acre
Year Built: 1956
Recent Updates: Windows, kitchen, bathroom
Property Taxes: $3960 (2020)
What I like about this property
Easy access from the main street and alley
May qualify for a FHA loan for a buyer who wishes to owner occupy and have most of their mortgage paid for with the rental income
Walking distance to elementary school/park, coffee shop, restaurants
Concerns about this property
Condition of the duplex - no pictures, however, this is quite common with rental properties as the seller may not want to disturb the tenants.
Conservative Assumptions Made:
Total monthly rent $4000: Main house rent at $1800 and duplex unit rent at $1100 each
Landlord Paid Utilities $300 a month for water and sewer ($100 per unit) - this water bill may be billed back to the tenant if desired or option to charge the tenants a flat monthly water fee
Garbage fee of $800 (annual)
Conventional loan with 25% down payment @ 3.25% interest rate (FHA loan with 3.5% down payment may be possible as well)
Property Management 8%; Vacancy, CapEx, Maintenance: 5% each
Included a $20k upfront rehab cost for cosmetic updates to get maximum rent
About the City of Salem
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 including Covid specific restrictions or consult a real estate attorney
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. Note that if you are using an owner occupied loan, the unit does not need to be vacant at the time of closing, you just need to move into the unit within 60 days of closing under FHA requirements.
Listing: Realtor.com https://www.realtor.com/realestateandhomes-detail/M2858781225