If you check in on occasion with my web logs and rants, you may have followed the articles written in August of this last summer about a North Portland Oregon duplex purchase and renovation started in August and completed in September.  Go to http://fabulousportland.com/2009/08/10/soi-took-my-own-adviceit-is-a-good-time-to-buy/ or scroll down on the right hand side of the page to the “Archives”>August to read all of the entries.  Anyway, by mid-September we were ready to rent!  I posted online and put out signage and flyers in front of the North Vancouver address, knowing that the popularity of the North Mississippi neighborhood and North Williams corridor would entice potential renters!!  Almost immediately the phone began to ring.  Many of the callers inquired as to whether we would accept “Section 8″ renters.  Section 8 is a division of the Housing Authority of Portland or HAP.  Their mission is dedicated to providing safe, decent and affordable housing for individuals and families who are challenged by income, disability or special needs.  I didn’t know much about Section 8, but was certainly not adverse to learning more.  I met with two young single mothers and was much impressed with their vitality, ambition and personality.  They explained the program and indicated their excitement that I was definitely willing to work with them and HAP!  We started the vetting process only to hit roadblock after roadblock.  Everyone at HAP was very helpful, but their hands are tied by what I perceive to be an antiquated system of establishing rents.  Our duplexes were 3 bedrooms, 1.5 baths and 1200 SF and I had established the going rate for the area to be a certain price point.  In an attempt to be competitive, I go online and compare other properties offered for rent and try to price my rentals a bit below other comparable properties.  So, I really felt I was asking market rent, considering the updated condition and location, or even a bit below market!  HAP’s system includes a process of assigning “points” for certain amenities such as garbage disposal, air conditioning, dishwasher and more but absolutely NO consideration for condition.  This encourages a lack of respect for living conditions and pride in one’s home.  These two young single mothers wanted to provide not just little extras (as a matter of fact neither even cared we didn’t have a garbage disposal) but wanted a pretty and safe and enjoyable home for their families to live.  They loved that the units had been lovingly restored and updated.  I was sorely disappointed, as I too, had raised two children as a single mother and knew what struggles these two vivacious women faced.  I wanted to help but HAP could simply not see fit to pay market rent.  There was an article in the Oregonian regarding HAP attempting to educate landlords about being open to Section 8 tenants.  I believe they must first readjust and update their thinking about how to value rents! By the way, I did quickly re-rent both units for my asking price!!

Also, what an amazing difference a little paint thrown around can make!!!  The original facade in photos #1 below and the new color scheme in the 2nd picture.  Shutters will be next on the upper windows in black (to compliment the doors).  It’s a “work-in-progress”!!  It took awhile to get the greenish color that I want (but, finally found it through Kaleidoscope at SE 9th & Salmon…it’s a Benjamin Moore color…and they were VERY helpful with choosing and mixing the correct paint).

Oh yes, and the backyard now has a fence (thanks to Pedro & Beatrice Naranjo)!

Then there was the dilemma with the stairs!  The vinyl stair treads that were glued to the original wooden stairs treads did not want to come off without a fight, so the stair risers and treads ultimately had to be replaced! My duplex partner (with the help of a friend who talked him through the process long-distance) placed new treads and risers.

Investment properties in Portland have managed to “hold their own” in an otherwise challenged real estate market, even though the rental market has also had to adjust prices to compensate for the extra rental inventory.  Portland property owners who feel they cannot garner what they need to sell their home have added to the number of available rental properties, putting downward pressure on rents!

Stay tuned…more to follow!!