Real Estate Broker · Miami-Denver-Austin · Member since 2015 · 91 posts · 32 votes
Hi there,
In my mid-twenties and now have the okay from my mom to borrow money for a down payment (up to 50K). I'm interested in putting this towards a multi-unit property (2-4 units) and leveraging a FHA loan. I've been doing some reading and analysis, but have some two major questions.
1. With Portland seemingly "hot", are good deals still able to find?
2. Okay, I now have the okay, access to 50k -- what are my immediate next steps?
Investor · Portland, OR · Member since 2015 · 119 posts · 78 votes
10y
Portland is hot hot hot as you know. We are in the middle of 3 flips right now. If you're talking buy and hold your best bet for affordability and appreciation are Milwaukie and Lents. Brentwood-Darlington is a distant 3rd choice. It's very "pocket-y" here as you know so go out and drive around. You might be unsure about living in your rental in these neighborhoods but it's your best bet.
I'm assuming you're talking about Portland Oregon. Ha!
Good deals can be had in any market, but here in Portland you might have to wait a little longer to get your hands on one. Make sure you are working with an agent that understands investing and exactly what you're looking for so you're covered on the MLS front. You can do a little work yourself and get a list of properties that fit your specs that are absentee owners from listsource and then either knock doors or conduct a direct mail campaign.
Portland, OR · Member since 2015 · 2 posts · 0 votes
10y
new to this site and not trying to be critical. Do I understand that you are receiving a loan from your mom for an investment or is she an active investor that you are partnering up with or is she co-signing? As a financial advisor for over 20yrs I see well defined red flags in your post. I may have missed information from other posts that would add clarity, but with limited information for the happiness of your relationship with a loving mom, cut the cord and go find your own money.
Why are you borrowing a down payment anyway? There are critical issue here that have nothing to do with whether Portland is a hot market or not.
Sorry, this may be not the response you were looking for but think hard about what you are doing.
Real Estate Broker · Portland, OR · Member since 2014 · 8 posts · 4 votes
10y
Hi Dakota,
We are happy to sit down with you and discuss multi-family investing. We have a team of experts who know it well here in Portland. [Post edited to remove the contact info]
Real Estate Broker · Miami-Denver-Austin · Member since 2015 · 91 posts · 32 votes
10y
@edjeffery I appreciate your input -- and maybe there is an issue here; however, what specific issues are you referring to? Is there a legal/tax/etc issue? I have a well-established job and a plan to how I would pay her back in due time. it would be strictly a loan from her. A private loan. I am borrowing for the down payment because I don't have the money right now for a down payment... If you can be more specific about what financial planning issues are apparent, i'm all ears. If the deal is right and the majority of the mortgage/expenses/etc can be covered by other renters, I can begin paying back my mom every month.
@Garrett Beecher thanks for the support! I'm prepared to wait, definitely in the preliminary stages. Getting access to MLS will clearly come with pairing up with an agent correct?
@Chris Olson That'd be great. You are a agent in town?
Investor · Portland, OR · Member since 2015 · 119 posts · 78 votes
10y
Portland is hot hot hot as you know. We are in the middle of 3 flips right now. If you're talking buy and hold your best bet for affordability and appreciation are Milwaukie and Lents. Brentwood-Darlington is a distant 3rd choice. It's very "pocket-y" here as you know so go out and drive around. You might be unsure about living in your rental in these neighborhoods but it's your best bet.
I'm assuming you're talking about Portland Oregon. Ha!
Lender · Portland, OR · Member since 2013 · 88 posts · 38 votes
10y
@Dakota Mivshek you will running into problems with the downpayment funds being lent by your mother. The funds will have to be a gift in order for you to use them, or at least be able to show that the minimum downpayment is coming from an account of yours.
As you go through the underwriting process you will be asked to show where the funds come from. It would be best for you to talk to your lender before you go to far to make sure it does not become an issue.
As to the market you can always find something...the issue is how long you need to look. As a few people have said work with a realtor that works with investment properties (hopefully owns them, not just sell them) and start the hunt.
Feel free to contact me anytime if there is anything I can help with.
Portland, OR · Member since 2015 · 2 posts · 0 votes
10y
Dakota,
Thanks for reading my post. I felt like an old curmudgeon writing it. Don't worry about "defined red flags" the post above touched on part of the issue. People who lend for a living understand risk. As stated above they will not lend to you if you are borrowing your down payment . There is a reason for that which is risk. They do not view you as a good risk. This may seem unfair, but unlike all the cheerleading posts here lenders deal in reality. Lenders are going to take all factors into account including income, marital status, credit, etc. and through the rate they give you they are telling you what kind of risk you are to them. This is good information that will help you plan. Your mom can't do this and it is not fair to her, unless 50k is like buying a stick of gum. The moment she writes that check your relationship will change and not for the better. You are 25, you have a good job leverage that and not friends and family. Good luck investing the correct way is hard work.