Wouldn't this also be a win for real estate developers and property investors?
- Purchase old home or lot.
- Tear down old structure.
- Build new 4-plex or 6-plex.
- Sell/Rent 4-6 units on a plot.
Example: "ABC" owns rancher on a single plot. Rents out rancher for $4000/mo. Current revenue is $48000/yr. "ABC" turns rancher into modern 6-plex on the same plot. Rents out each of the 6 units for $2000/mo. New revenue is $144000/yr.
Of course, capital required to build a new structure will erode returns for initial years, but as long as the demand to live in Portland is still high, it seems like a more profitable strategy longterm?
Unless I am totally off-base with these assumptions.
- Purchase old home or lot.
- Tear down old structure.
- Build new 4-plex or 6-plex.
- Sell/Rent 4-6 units on a plot.
Example: "ABC" owns rancher on a single plot. Rents out rancher for $4000/mo. Current revenue is $48000/yr. "ABC" turns rancher into modern 6-plex on the same plot. Rents out each of the 6 units for $2000/mo. New revenue is $144000/yr.
Of course, capital required to build a new structure will erode returns for initial years, but as long as the demand to live in Portland is still high, it seems like a more profitable strategy longterm?
Unless I am totally off-base with these assumptions.