All Forum Posts by: Andrew Westlund

Julien,

Good things to consider. Thanks for the insight. I dont have my next deal found yet. With interest on the rise, I figured keeping money out of deal, and in my hands would be more valuable. I could support the negative cash flow with the funds id be getting back from the cash out and then hope to find a better deal. I have more time than money at the moment so my thought is to get as much money out and then go recycle it through a few rehab/flip/build deals. 

Ernesto, 

Interest only seems like an option worth exploring. Im not sure I understand your last sentence. Can you explain? 

AJ

We purchased a small lot in 2020. We changed the zoning from Low density to medium density, which allowed us to build a duplex. Construction is going excellent, we are ahead of schedule and under "budget". We will be done at the end of November. We will have total cost into the build of about $498k. Forecasting a $700k appraisal and with current interest rates im not sure how much to leave in the deal... 

Option 1) Leave 25% (175k) in the deal. We get all the build money back out plus 25k (525K total). This option negative cash flows about 6k annually when you account for taxes, interest, maintenance, vacancy, cap ex, ect. 

Option 2) Leave 35% (245) in the deal. We only get back 455k of the 500k it took to build... Barely breaks even on annual cash flow... 

Id love to hear what you would do in this situation... Next time I think we need to find a little better of a deal I guess... I do think there is a lot of value in the experience we are getting going through the process :-) 

... but experience alone doesnt buy the next rental property. Thank you! 

Weve got a guy and girl in a relationship in one of our units. They have broken up and want to move out at the end of their lease (end of feb). At that point they will be 7 months behind in rent at $1050 per month. She said she hasnt been able to pay because she lost her job to covid. He worked for most of the time but then said he lost his job end of oct. Now they are breaking up and she said he parents are willing to pay her half of the back rent, but not his... 

This sounds like better than nothing to us! Id probably take her half and then just work on getting the remainder from him... What she said her parents want is a letter saying that she will be "off the lease" if her half is paid... Can we do something like that? Any advise on how to proceed? Thanks 

AJ 

In the state of Oregon eviction protection has been extended to September 30th and then any unpaid rents are not due until March 31... 

I havent been able to establish communication via phone or mail with late tenant. I am also looking for help on this topic. 

We recently purchased a 4 plex, fully rented. We closed early June. We sent letters  each tenant introducing ourselves, our contact info, asked how they would like to be contacted, how to pay rent etc etc. We only heard back from three of the four. The one we never heard back from we have been unable to reach via cell. The first of the month came and went, the 5th was the established late day and the 8th is when the eviction process was supposed to start. In oregon now, they have extended the eviction moratorium which basically prevents tenants from being evicted until after september 30th and gives them till march 31 to pay back the rent we never collected. 

Anyone have any suggestions on how to handle this? Im trying not to get frustrated but they are making it a little difficult by not communicating. I did notice a nice new mustang in the driveway last week... just the icing on the cake. A lady, Gentleman and their kid.