What path to take? (Rent, lease option, buy..?)

Question

Hello my fellow BP members!

So, I am an investor in the Portland Oregon area. I am still in the start up stages of investing, and looking for some advice on where to start. I currently have a mentor in Wholesale and exploring other avenues for income streams.

My main question though is more along what step to take first as far as personal residence. The wife is ready to get out of the apartment life (as am I). At this point though, I would need a few years to repair my credit (we could try hers though) to buy our first home. So the thought of renting something for a year or so to allow me time to do wholesale deals to build capital to put towards an actual home for us. (We do not really have much to put down on a home at this point either.) This has brought up the idea of lease option as this would allow us to "rent" while still having our money going into our future home.

I am open to any and all ideas. We are really wanting to get into a home type set up, but want to make sure it is a safe, and profitable decision down the road. Let me know if you need more info or anything. Thank you in advance for taking time to share your thoughts, advice and even personal experiences in this area.

Ratho R. · Answer

Thank you all for the helpful info here. I love this community! I think we are going to look into the Lease option at this stage. I have done a lot of research and am meeting with a local guy from my REIA that specializes in Lease option training, so I will get to help out a fellow investor and maybe some of his students. Appreciate all the advice here and it has been very helpful! Best of luck on your business journeys!

Brian Bower · Answer

@Ratho R. I am by no means a pro, but what has worked extremely well for my wife and I; we were looking at duplexes for our first home purchase and ended up finding a nice house with an ADU(Auxiliary dwelling unit) in the back. We(just barely) managed to finance the property with just my wife's name on the loan. Our purchase price was higher than what we wanted to pay, but we are getting over half our mortgage paid for by the income generated by the ADU. We are now well set up to purchase an income property since I don't have the mortgage in my name at all... This of course is all contingent on savings, income, and risk tolerance. Good luck!

Charles Morgan · Answer

By the way, both Mobiles have more land than any of my three site-builts. The second came with a 12x14 detached garage.

Charles Morgan · Answer

@Ratho @Ratho R. a little confusion. Both mobiles that I bought were on their own land. One on .39 Acre, one on .41 Acre. one cost $18000, one $6000, no lot rents. I also would not buy a glorified apartment they label as a Condo. A mobile on it's own land is a lot more like a site-built but easy to repair because you can get under them. Two of my homes are slab foundation, need a jackhammer to get to pipes and drains for repairs.

Ratho R. · Answer

@Brandon Turner thank you for the advice. I am currently working with a Lease option connection that I made at my local REI. I think that is the best bet for us at this stage. I kinda felt like I was answering my own question as I typed up my first post here. haha. @Chanté Owens Thank you for the encouragement. I have options, I just want to be sure I pick the best one for later down the road. Yes, REI is work...but it is rewarding and at the end of the day it's nice to be able to do something for a living that helps people, betters communities, etc. =) @Charles Morgan Thank you for your advice. I have had that passing thought. I wouldn't say I am against them, but from what I hear with having space rent, needing to register it as a vehicle (in Oregon at least)..it sounds a little more complicated than I would like to get into at this stage. I also grew up my whole life in manufactured homes. With connections at my local REIA, and here on BP, I a thinking I want to avoid that route, at least for now. @Corey Davis I personally wouldn't mind a condo. I have a friend that currently owns one. I am very sure that the wife would not approve though. haha. She wants out of anything that looks or feels like an apartment. Something with a garage and storage space, our own yard, things like that she is really wanting. I think the most flex I have gotten her is to look at town homes. haha. Thank you all for your time and input! Another great example of the BP community coming together to help the new on his journey of REI.

Corey Davis · Answer

Have you considered any of the condos in Portland? I've been in Portland for a few days looking at properties, many of the condos I've looked at don't fit my criteria, but are VERY affordable. More so, in my opinion, than half of the apartment rentals I've priced for comparison. I completely understand wanting to leave apartment life, but as a starter, living in your own condo as a jump off point seems like a wise move in Portland.

Charles Morgan · Answer

You may also consider the "M" word in housing. Yes I mean Mobile. You said that you don't have much and I don't know your area but I just bought one in New Mexico for $6,000. You might find an owner even willing to finance part of that or a partner to temporarily move in, or even rent out a spare bedroom. Think of it as practice for your wholesaling business, same type of search, different outcomes.

Chanté Owens · Answer

@Brandon Turner Thanks for posting, How to "Hack" Your Housing and Get Paid to Live for Free @Ratho R. Good luck to you! It's tough starting out (I'm in your boat), but from what I've been reading here, and know from other aspects of my life, patience truly is a virtue.

Brandon Turner · Answer

Hey @Ratho R. personally, I don't think I'd opt in for the Lease Option. Most banks won't accept the extra money you paid each month anyways, so it will just stay in the landlord's pocket. I'd focus instead on finding the cheapest way to live, and do that. It's no secret I'm a fan of finding a small multifamily property (like a duplex, triplex , or quad) and getting started that way, but you also might be able to find a property that you can be a "resident manager" at while you live for free and learn the biz. Thoughts? Be sure to check out How to “Hack” Your Housing and Get Paid to Live for Free