First Post of an Aspiring First Time RE Investor

Portland, Oregon
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First Post of an Aspiring First Time RE Investor

Federico Costa
New to Real Estate · Portland, OR · Member since 2020 · 4 posts · 0 votes

Howdy!

I am searching for patient souls on this forum willing to allow me to pick their minds about investing in RE from scratch. I know we all started somewhere, and I am looking forward to any insightful and inspirational conversation of where some you started. Since my field of work is the embodiment of the word:"instability," when the economy takes a hit, I have been gathering information about meaningful ways to diversify my sources of income; furthermore, RE investing has always interested me, and I believe I have the proper motivation to make it work.

I have been doing quite some reading and studying about the topic online, podcasts, ebooks, etc. but I would like to take a more meaningful step towards achieving something more concrete. I am looking into funneling money from my main job into this project, and I want to reinvest everything I make from it. Specifically, I am interested in purchasing my first multi family property for the sole purpose of renting it, although I know a few people who are running successful Airbnb, so I understand it may work as well if properly managed.

I apologize for the generic post, but I figured to try my luck and see where it takes me.

Thank you for your time and patience.

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Melissa HartvigsenBusiness Member
Real Estate Agent · Beaverton, OR · Member since 2020 · 190 posts · 158 votes
3y

Hello @Federico Costa,

I built my portfolio by house hacking (holding for a while, and later using a 1031 exchange to acquire more units) here in the Portland Metro.  I have short term, mid term, and long term rentals. I love seeing others succeed, and in our market purchasing a multifamily property as a brand new investor can be challenging due to the up front cash required. It is substantially more than if you live in the property.

For example: if you buy a house in our market using the median home price of $550,000 as an investor the minimum down payment of 15% is $82,500, versus an owner occupier can do as little as 3% down payment $16,500.  In addition to your down payment you also need to budget for 1-2% of the price for closing costs. Investors also have higher interest rates.

For those reasons, you might be a great candidate for house hacking. Either you buy a single family home and rent out to roommates or rent out rooms on Airbnb while you live there (you only have to do this for a year), or you purchase a duplex and have part of your mortgage subsidized by the tenant living on the other side.

Another benefit to house hacking is that you may be eligible for one of the many first-time home buyer incentives available to Oregon residents with can offer you (depending on the program) money for the down payment, closing costs, or a below market interest rate. None of these programs are available for investors. Here are just a couple of examples:

Gresham Welcome Home - offers up to $40K in down payment assistance

Oregon Bond w/ below market interest rate or cash grant for closing costs.
Rate Advantage 6.125%, Cash Advantage 6.75% (also gives up to 3% of purchase price for closing costs). Normal rates on Friday were 6.98% without the Oregon Bond.

Our local NW REIA has meetups for investors, and even if you don't join as a member you can attend some events for free. I recommend the "roundtable" so you can meet with other experienced investors. https://www.northwestreia.com/events

Send me a PM if you are interested in being connected with a lender that talk to you about first time home buyer programs.  Also, if you wanted to meet up for coffee I can share some local market insights.

Melissa

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  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    im open to connecting 

    0Reply
  • Melissa HartvigsenBusiness Member
    Real Estate Agent · Beaverton, OR · Member since 2020 · 190 posts · 158 votes
    3y

    Hello @Federico Costa,

    I built my portfolio by house hacking (holding for a while, and later using a 1031 exchange to acquire more units) here in the Portland Metro.  I have short term, mid term, and long term rentals. I love seeing others succeed, and in our market purchasing a multifamily property as a brand new investor can be challenging due to the up front cash required. It is substantially more than if you live in the property.

    For example: if you buy a house in our market using the median home price of $550,000 as an investor the minimum down payment of 15% is $82,500, versus an owner occupier can do as little as 3% down payment $16,500.  In addition to your down payment you also need to budget for 1-2% of the price for closing costs. Investors also have higher interest rates.

    For those reasons, you might be a great candidate for house hacking. Either you buy a single family home and rent out to roommates or rent out rooms on Airbnb while you live there (you only have to do this for a year), or you purchase a duplex and have part of your mortgage subsidized by the tenant living on the other side.

    Another benefit to house hacking is that you may be eligible for one of the many first-time home buyer incentives available to Oregon residents with can offer you (depending on the program) money for the down payment, closing costs, or a below market interest rate. None of these programs are available for investors. Here are just a couple of examples:

    Gresham Welcome Home - offers up to $40K in down payment assistance

    Oregon Bond w/ below market interest rate or cash grant for closing costs.
    Rate Advantage 6.125%, Cash Advantage 6.75% (also gives up to 3% of purchase price for closing costs). Normal rates on Friday were 6.98% without the Oregon Bond.

    Our local NW REIA has meetups for investors, and even if you don't join as a member you can attend some events for free. I recommend the "roundtable" so you can meet with other experienced investors. https://www.northwestreia.com/events

    Send me a PM if you are interested in being connected with a lender that talk to you about first time home buyer programs.  Also, if you wanted to meet up for coffee I can share some local market insights.

    Melissa

    1Reply
  • Abbey Humphreys
    Member since 2023 · 303 posts · 324 votes
    3y

    Hey Federico, welcome to Bigger Pockets. The point of these forums is to pick the brains of those with information we may not otherwise have access to! Don't be apologetic, everyone starts somewhere, just like you said.

    I'm not certain what exactly you're asking or if you're simply introducing yourself, but STR acquisition can be a fantastic investment if you know what it is that you're looking for and you do your research-which is sounds like you are. Best of luck and I would love to connect more!

    0Reply
  • William Sing
    Real Estate Agent · Portland, OR · Member since 2020 · 278 posts · 136 votes
    3y

    Hey @Federico Costa! 

    First off, major kudos for stepping into the realm of real estate investing! 🏠 It's a path filled with opportunities and learning curves, and I'm thrilled to be part of your journey. 

    When it comes to investments, there's a world of options. If you're aiming for a lower down payment, house hacks might be your golden ticket. Especially if you are in the Portland Metro area.

    Your enthusiasm for Airbnb and multi-family rentals is spot on. Just remember, Airbnb can be a bit hands-on, so be ready for that adventure, and is more of running a full-time business. If the sellers for small multifamily have equity or a small loan amount, there are some creative ways you can still make them cashflow in a year or two. 

    There are a couple of lenders in Portland that have some specialty loans that might be a big help too! If you want me to connect them to you I can, but no worries if not :)

    Cheers,
    - Will

    0Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    3y

    @Melissa Hartvigsen Great work on using a 1031 exchange. That is exactly how you use it!

    0Reply
  • Federico Costa
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 4 posts · 0 votes
    3y
    Quote from @Melissa Hartvigsen:

    Hello @Federico Costa,

    I built my portfolio by house hacking (holding for a while, and later using a 1031 exchange to acquire more units) here in the Portland Metro.  I have short term, mid term, and long term rentals. I love seeing others succeed, and in our market purchasing a multifamily property as a brand new investor can be challenging due to the up front cash required. It is substantially more than if you live in the property.

    For example: if you buy a house in our market using the median home price of $550,000 as an investor the minimum down payment of 15% is $82,500, versus an owner occupier can do as little as 3% down payment $16,500.  In addition to your down payment you also need to budget for 1-2% of the price for closing costs. Investors also have higher interest rates.

    For those reasons, you might be a great candidate for house hacking. Either you buy a single family home and rent out to roommates or rent out rooms on Airbnb while you live there (you only have to do this for a year), or you purchase a duplex and have part of your mortgage subsidized by the tenant living on the other side.

    Another benefit to house hacking is that you may be eligible for one of the many first-time home buyer incentives available to Oregon residents with can offer you (depending on the program) money for the down payment, closing costs, or a below market interest rate. None of these programs are available for investors. Here are just a couple of examples:

    Gresham Welcome Home - offers up to $40K in down payment assistance

    Oregon Bond w/ below market interest rate or cash grant for closing costs.
    Rate Advantage 6.125%, Cash Advantage 6.75% (also gives up to 3% of purchase price for closing costs). Normal rates on Friday were 6.98% without the Oregon Bond.

    Our local NW REIA has meetups for investors, and even if you don't join as a member you can attend some events for free. I recommend the "roundtable" so you can meet with other experienced investors. https://www.northwestreia.com/events

    Send me a PM if you are interested in being connected with a lender that talk to you about first time home buyer programs.  Also, if you wanted to meet up for coffee I can share some local market insights.

    Melissa


    That was very helpful. I am definitely interested in learning some more about the local market, if you are available, and I can get into more details about my situation. I will PM you!

    0Reply
  • Federico Costa
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 4 posts · 0 votes
    3y
    Quote from @Abbey Humphreys:

    Hey Federico, welcome to Bigger Pockets. The point of these forums is to pick the brains of those with information we may not otherwise have access to! Don't be apologetic, everyone starts somewhere, just like you said.

    I'm not certain what exactly you're asking or if you're simply introducing yourself, but STR acquisition can be a fantastic investment if you know what it is that you're looking for and you do your research-which is sounds like you are. Best of luck and I would love to connect more!


    I apologize for the rather generic inquiry; I figured out the best way to break the ice was to fire my shot introducing myself and my goals. Most people here appear to be heavily involved into RE, and so, it feels very awkward to ask professionals "how they do their job." But once I get over the initial "embarrassment," I feel like things will fall into place.

    0Reply
  • Federico Costa
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 4 posts · 0 votes
    3y
    Quote from @William Sing:

    Hey @Federico Costa! 

    First off, major kudos for stepping into the realm of real estate investing! 🏠 It's a path filled with opportunities and learning curves, and I'm thrilled to be part of your journey. 

    When it comes to investments, there's a world of options. If you're aiming for a lower down payment, house hacks might be your golden ticket. Especially if you are in the Portland Metro area.

    Your enthusiasm for Airbnb and multi-family rentals is spot on. Just remember, Airbnb can be a bit hands-on, so be ready for that adventure, and is more of running a full-time business. If the sellers for small multifamily have equity or a small loan amount, there are some creative ways you can still make them cashflow in a year or two. 

    There are a couple of lenders in Portland that have some specialty loans that might be a big help too! If you want me to connect them to you I can, but no worries if not :)

    Cheers,
    - Will


    I read it can be very time consuming, but after all, everything worth it takes time. My schedule is unusual due to my main job, but I can adjust it rather well; I have quite some downtime, and I am truly interested to talk about the different creative solution people come up with locally.

    I would love to connect to enhance my chances of reaching my goal.

    0Reply
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