Frustrating

[Eric Stanley]

This may be a noobie question but how is it possible to get into real estate in an area that is booming? I live in the Portland Oregon metro area and the prices of both single family and multi family houses are so much now that none of them cashflow. For example single family homes are averaging near $350,000, which would rent for appx. $1,800/mo. That doesn't leave much wiggle room and in some cases won't cash flow. I don't want to consider out of state investing, anyone else in this boat?

Thanks in advance

[Jay Hinrichs]

well first off there is more to RE than simply buying a rental.. if its rentals you want then you can move out to less expensive areas that are still close to you .. think Mollalla think Mt Angel

think Woodburn think about some of the semi rural areas in between lots of fixers in these areas we see them all the time.. this market is about forced equity right now.

real estate is about how hard you work and being ready to pounce ..

for instance in your fair city I have done 3 projects in the last year

1050 Pine.. was MLS listed I made cash offer day it hit the market 20k EM close in 10.. as is no inspections.. so that's your competition ME.... now why would I do that.. well it had the room to create a new lot and build a new home.. so that's what I did made a new lot built a new 1600 sq foot home and closed last month for 350k.. I paid 220k for the whole thing.. then I remolded the front house put about 25k into it put it on the market for 250k what I paid for it.. and got into a bidding war ended up selling to a first time buyer for 280k... house in back cost me 200k all in to build and subdivide.. I was able to use my local community bank to fund it all with 40k down and 6% interest including the vertical construction loan.. all in and out in 14 months.. this was MLS if I can do it you can do it.. this property was available to the general public

on Fir St by 6th you will see 3 new builds those are mine as well. this was off market property in foreclosure.. same thing I come in and rescue subdivide land into 3 lots remodel existing build two new.

then I bought a FSBO ( on Craig's list) 3 lots turned them into 6 attached lots cost about 25k for land use and sold them to another builder all within a year and sold them fo r40% more than I paid for them I paid cash for this.

So there are three deals all money makers all got a different way 2 open to anyone and right in your home town...

take away in this market you have got to HAVE CASH and be able to move on deals right now.. so if you need financing you need that set up before you go shopping.. and for fixers you need CASH or HML so get that first.. then start looking there are plenty of fixers as stated between Oregon City Canby Mololla woodburn mt Angel etc etc..

If you want rentals then you just have to live with 5% return but actually get it... lower end out of state is risky if you don't choose well.