Finding a Cosmetic Fixer in Portland

Posted on 08/20/08 12:33 PM

If you have the skills, cosmetic fixers are a great way to buy into a neighborhood you otherwise couldn’t afford. For investors, cosmetic fixers typically provide a good opportunity to create value through sweat equity i.e. buy it, fix it and then sell it for a profit. A fixer is a property with a problem. A significant number of buyers will pass it up because of that problem and sellers will discount the price for the same reason. If you can solve the problem – without breaking the bank (or your back), you’re likely to get a good deal on the transaction. However, not all fixers are equal and not all issues can be resolved in a timely and feasible manner. Take a bad floor plan for instance; there is only so much you can do to change that, without tearing down the whole house. For the purpose of this report we shall focus on “cosmetic” fixers i.e. houses that need the kind of work that can be done by a handyman, rather than an engineer and/or a construction crew. Typically this kind of work includes (but is not limited to) jobs such as new paint, new windows/screens, repairing carpet/flooring, minor plumbing, installing/adding insulation, updating wood work, landscaping etc.

Finding a good cosmetic fixer is not easy. Not only does it require a firm understanding of the cost of the repairs, you would also need to know what kind of value the market will attach to your improvements – when it’s time to sell. Even if you do find a great candidate, you would need to be extra careful when buying in a neighborhood where there is an abundance of fixers. Here’s what the situation looks like for various zip codes/neighborhoods throughout Portland, based on listings that have been classified as cosmetic fixers or use language to that extent – broken down by price category. To locate a zip code, click here.

Cosmetic Fixers Under 300k

You’ll notice that in this price category there’s a fair amount of fixing up going on around both sides of I-205 along Foster Rd into sections of Happy Valley. In general price points as well as income levels tend to be lower in these neighborhoods, so the high number of fixers is not surprising. On the opposite end of the spectrum, select fixers in Mt. Tabor or the West Hills generally provide a safer bet.

Cosmetic Fixers between 300k and 450k

Northeast Portland has quite a strong presence in this category. There tend to be quite a large number of listings in this price range, resulting in a greater share of fixers. With roughly 10 fixers in 97212 and 97211 respectively, you’re not exactly looking at an over-supply, especially given the healthy growth in this area. And just because there is only 1 candidate in Parkrose (97218), that doesn’t mean it’s a great opportunity.

Cosmetic Fixers onwards of 450k

If you are looking in this price range your chances are best in areas such as Raleigh Hills/West Sylvan/Hillsdale. There are a handful of opportunities in Zip Codes 97225, 97219 and 97239. Northeast Portland also offers some good inventory.

If you would like to find out more about cosmetic fixers and select opportunities throughout the Portland-metro area you can sign up for the Cosmetic Fixer Report here.