All Forum Posts by: Allen Jones

Thank You!

I bought a property a couple of years ago for $125,000. The state purchased part of the land the home is on for $135,000 to build a new road, however I still have the house. How would my capitol gains work in this situation. My thought is the capitol gain would be $10,000 this year and whenever I sold the home the entire sale price would be a capitol gain at that time. Is this correct? Thanks, Allen.

I've got a question about insurance for a low cost property. I'm looking at a $30K single family house, it's in a C- neighborhood. The replacement cost is $125k. In the event something happened and it was a total loss, spending $125K to rebuild in that area seems unwise. What do you recommend for insurance coverage when the replacement cost far exceeds the properties actual value? 

Greg,

Thanks for the response! I rarely have any issues with my east end rental house, so I've probably been spoiled. I would like to get another house in that area, but there isn't much available at a price that makes sense. 

My thought was to get a west end house that's in good condition and let my property manager find me a decent tenant. Your numbers are close to what I was figuring: $25k house, $700/month. If I stay where I'm at, a $100K house will get me $1100/month. 

Thanks for the replies!

I'm looking for cash-flow. I'm basically retired from my previous business, so I have the time to deal with things that arise. And my property manager is familiar with the area. 

I'll probably give it a try if I can find the right property.

Thanks Again!

Hello, 

I'm looking for some advice before I pull the trigger on my second rental home. My current rental is in the east end and rents for $1100/month. Comparable homes in the area would be around $120K.

I'm seeing quite a few west end/Portland homes on the market for $30k or less, that appear to be mechanically sound. Some of these are currently rented for $600-$700/month. 

I've heard I can expect a higher level of vacancy/late rent, greater chance of damage.  I also realize there will be no appreciation on the homes value.

Despite all that, it seems a $60k investment in two west end homes would outperform another $120k east end home.

Is there something I'm missing in this equation? Why are other investors selling currently rented units?

Thanks,

Allen

Thanks! I appreciate the information!

I'm looking for a rental house in the West end/Portland area and I had a few questions about the homeowners insurance. I'm wondering how the rates are calculated. Is it based on the purchase price, square footage or something else. I'm just curious because the prices they sell for are a fraction of what they would cost to replace. What would be a ballpark rate on a 30k property?

Thanks,

Allen