Custom 2 Bedroom Cottage Quadplex Development in Bend Oregon.
High-Return Middle Housing Infill Project
Location:
Bend Oregon (Deschutes County)
Zoning: Middle Housing- Quadplex (RS Zone)
Scope: Three Custom 2 Bedroom Cottages Added to an Existing Rental Home
Zoning: Middle Housing- Quadplex (RS Zone)
Scope: Three Custom 2 Bedroom Cottages Added to an Existing Rental Home
Tailored Homes partnered with long-time Bend residents and local business owners to unlock the full income potential of a Southwest Bend rental property through Oregon’s Middle Housing land-use reforms. The owners were seeking an experienced Bend ADU and middle housing builder who could deliver cost-efficient construction, strong long-term durability, and above-average rental performance.
By leveraging the City of Bend’s Middle Housing code, Tailored Homes helped transform a single-family rental property into a four-unit income-producing asset—without land acquisition costs while maintaining neighborhood compatibility.
By leveraging the City of Bend’s Middle Housing code, Tailored Homes helped transform a single-family rental property into a four-unit income-producing asset—without land acquisition costs while maintaining neighborhood compatibility.
Project Overview: Maximizing Rental Density Under Oregon Middle Housing Rules
Originally developed in 1991, this 0.28-acre property
sits within Bend city limits in a highly desirable neighborhood close to schools, employment centers, and daily services. The existing single-family home had been a stable long-term rental owned for over 15 years when the owners approached Tailored Homes.
Their objective was clear:Increase unit count, optimize cash flow, and maximize the property’s long-term value under Oregon’s new Middle Housing legislation.
Tailored Homes collaborated closely with the owners, a local civil engineer, and a designer to evaluate zoning allowances, site constraints, and infrastructure capacity. The optimal strategy was to retain the existing rental home and construct three detached 2-bedroom cottages, legally establishing the site as a quadplex under Bend’s Middle Housing code.
This approach allowed the owners to:
- Maximize rental income per lot
- Reduce per-unit construction cost compared to stacked multifamily
- Maintain strong tenant appeal with detached living units
- Increase long-term asset value and exit flexibility
Their objective was clear:Increase unit count, optimize cash flow, and maximize the property’s long-term value under Oregon’s new Middle Housing legislation.
Tailored Homes collaborated closely with the owners, a local civil engineer, and a designer to evaluate zoning allowances, site constraints, and infrastructure capacity. The optimal strategy was to retain the existing rental home and construct three detached 2-bedroom cottages, legally establishing the site as a quadplex under Bend’s Middle Housing code.
This approach allowed the owners to:
- Maximize rental income per lot
- Reduce per-unit construction cost compared to stacked multifamily
- Maintain strong tenant appeal with detached living units
- Increase long-term asset value and exit flexibility
Infill Construction Challenges—and How They Were Solved
Middle housing and ADU infill projects in Bend require precision planning, particularly on developed lots. With more than 20 years of local infill construction experience, Tailored Homes navigated several common—but high-risk—constraints.
Site Planning & Topography
The sloped backyard required a site plan that balanced:
- Drainage continuity for the original home
- City of Bend slope and grading requirements
- Private outdoor space for each cottage
Through close coordination with civil engineering and landscape professionals, the final layout delivered functional infrastructure and attractive tenant-ready outdoor environments.
Construction Access on a Constrained Lot
Backyard access for materials and equipment was limited. Tailored Homes implemented phased scheduling and logistics planning to minimize labor inefficiencies and protect the existing rental home during construction.
Utility Infrastructure & Coordination
A major complexity of this project involved separate utility distribution for three new detached units. Power, gas, water, and sewer systems were redesigned and installed in coordination with the City of Bend and local utility providers—without delaying the overall build schedule.
During excavation, an undocumented septic tank was discovered. The team immediately initiated permitting for abandonment and removal, resolving the issue quickly and keeping the project on track.
Site Planning & Topography
The sloped backyard required a site plan that balanced:
- Drainage continuity for the original home
- City of Bend slope and grading requirements
- Private outdoor space for each cottage
Through close coordination with civil engineering and landscape professionals, the final layout delivered functional infrastructure and attractive tenant-ready outdoor environments.
Construction Access on a Constrained Lot
Backyard access for materials and equipment was limited. Tailored Homes implemented phased scheduling and logistics planning to minimize labor inefficiencies and protect the existing rental home during construction.
Utility Infrastructure & Coordination
A major complexity of this project involved separate utility distribution for three new detached units. Power, gas, water, and sewer systems were redesigned and installed in coordination with the City of Bend and local utility providers—without delaying the overall build schedule.
During excavation, an undocumented septic tank was discovered. The team immediately initiated permitting for abandonment and removal, resolving the issue quickly and keeping the project on track.
Results: Fast Lease-Up and Strong Investment Performance
Despite winter construction conditions, Tailored Homes completed site work, utilities, and all three cottages in just 8 months.
The new 2-bedroom cottages were leased quickly, delivering immediate income growth for the owners.
The final outcome:
- A fully legal quadplex in a high-demand Bend neighborhood
- Detached units with strong long-term rental appeal
- Optimized density without sacrificing design or livability
- A scalable model for investors pursuing Oregon Middle Housing and ADU strategies
The final outcome:
- A fully legal quadplex in a high-demand Bend neighborhood
- Detached units with strong long-term rental appeal
- Optimized density without sacrificing design or livability
- A scalable model for investors pursuing Oregon Middle Housing and ADU strategies
Build Smarter Under Oregon’s Middle Housing Rules
If you’re an investor looking to increase rental density, improve cash flow, or redevelop an existing property in Bend or Central Oregon, Tailored Homes brings deep experience in ADU, middle housing, and infill construction.
