March 2021 Newsletter

1730 Thurston St SE, Albany OR

4-Plex | $550,000 | March 8, 2021

Invest for the future! This is a well maintained townhome style 4-plex in an ideal rental location in Albany Oregon. Each unit has a single car garage, patio, fenced backyard, covered private balcony, and in unit Washer/Dryer hookups. Close to local schools, restaurants and shopping.

Unit Mix: Three 2 bed/1 bath units, One 3 bed/2 bath units

Total Sq Ft: 4,336

Lot Size: 0.3 Acre

Year Built: 1978

Recent Updates: New roof in 2015, new hardiplank siding and paint in 2016, new furnaces in 2018.

Property Taxes: $6,098.66 (2020-2021, with discount)


What I love about this property

  • Each unit has its own washer/dryer hookups so there is no need to to maintain an onsite laundry facility.

  • Single car garages for additional off site parking or storage

  • Lot of privacy for the tenants despite it being a 4-plex: fenced backyard, private balcony, etc.

  • Many of the expensive capital expenditures such as the roof, siding, etc. have already been replaced recently.

  • Best of both worlds: Future Appreciation & Cashflow

Financial Analysis

Conservative Assumptions Made:

  • Total monthly rent $4600: 2 bedroom units rent at $1100/month, 3 bedroom unit rent at $1300/month

  • Landlord Paid Utilities $400 a month for water and sewer

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

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

Albany 4-Plex Mar 8 2021 Calculation

Suggested Information to Verify (Buyer to do due diligence)

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

  • Verify who pays what utilities. Most 4-plexes do not have separate water meters so the owner is probably paying for water/sewer and possibly trash and landscaping.

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

  • Contact a real estate professional you wish to purchase this property

About the City of Albany

  • There's a lot to love about the City of Albany: It's a fast growing city with a tight-knit community, a perfect place to raise a family!

  • With a population of 55,338 (2019), Albany is the 11th largest city in Oregon

  • Situated close to the freeway, it's an easy commute to surrounding cities such as Salem, Portland, Eugene etc.

  • Strong housing market: a good investment for future appreciation and continued rent increases

Sources