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All Forum Posts by: Account Closed

Account Closed has started 6 posts and replied 11 times.

Post: Rehab neighboorhoods a good place to start? (Portland, OR)

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

Mike - It was a closet! :D I went and looked at it on Sunday, it had a basement that had potential though.

Eric - I can only afford to start small, do you think there are other areas I could find a rehab around 100k purchase price in Portland, or do I have my head in the clouds?

Everyone - What has been a good strategy for you in the past in finding rehab projects?

Also, has anyone bought a house for themselves as a rehab project to get their feet wet?

Thanks!

PS - Short sale is a bank owned property after a foreclosure right?

Post: Rehab neighboorhoods a good place to start? (Portland, OR)

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

I originally was going to PM this to EricFoster, as he is one of the more active investors in this area, but decided maybe to post it here to get any other investors thoughts (Portland area or not). Basically it was an idea I had to generate some capital by buying something that will appreciate rapidly over the next 3-5 years. Any advice is welcome. Also let me know if this is the wrong forum to post this under.

Message below:

"I was hoping to get into REI by purchasing house that I can sell in 3-5 years or use equity from to fund future investments. The area I had my eye on was the Lents renewal area along I -205.

Link the PDC site regarding the project:
http://www.pdc.us/ura/lents.asp

Do you know anything about this area? Personally, I see it as a great potential to get into a rehabilitation project (owner-occupied) as a first time investor. There are even programs the PDC is offering to help first time home buyers in this area!

This is just an example of one I found on craigslist:
http://portland.craigslist.org/mlt/rfs/547708830.html

Not much to look at but it has potential ( adding a garage or a little picket fence could really increase it's curb appeal ). I drove through the area and there a tons of little rehabs like this.

Any thoughts?"

Post: Finding a good REI club

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0
Originally posted by "FSJR9":

ditto to what he said. See my post regarding my first experience.

I read your post regarding your first REI meeting and LOL that is exactly what I am afraid of, walking into a live action late night infomercial!

Post: Finding a good REI club

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

Hello,

This isn't my first post, but since it has been recently, I'll refresh my situation.

I am 26 years old, recent graduate from college, BS Computer Science. I work as a network administrator for a global engineering firm, with entry level pay. I just recently moved to Portland from Boise, ID.

The last year of college really depressed me because i feel I chose the wrong field of study. I enjoy IT both on a personal and professional level but feel it is not my true calling. One of my very close friends was a Finance major who went to work for a large commercial real estate firm as a broker after we graduated. I envy him due to the fact that while I know how much money I will make every month or even this year, his opportunity for income is limitless. This turned out to be the catalyst in my interest in REI.

My question: Without a doubt, the most offered piece of advice given to new real estate investors is to join a local REI club. However, a search in my area returns no less than 10-20 different clubs, some with paid membership. What are good credentials to look for when choosing? I am mainly interested in wholesaling and possibly bird dogging to get my feet wet.

Best regards,

Andrew

Post: Rehab loan & Fixer upper

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

If you do a FHA 203k it would have to be owner-occupied. The loan does not specify who you have to use for the repairs (even the borrower), but they have to "be qualified to do the work and complete it in a timely and workmaship like manner"

The budget would be very important as the funds for the repair are limited + small amount of contingency funds and are held in escrow until the completion of work.

If it is a HML than the budget would still be important as you would have had to calculate them as accurately as possible to protect your profit. You could use whomever you wanted to do the work but time would be your enemy.

Someone correct me if I'm wrong on this.

I am planning on using a 203k to buy a fixer upper as a primary residence and either sell it when the time is right, or pull equity to fund other REI opportunities.

Post: Am I calculating this right? (HML)

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

Hello-

New to REI and I was trying to figure out a HML that was listed on another thread. Was hoping someone could confirm I did the numbers right.

Terms:

70% of the after repaired value
14% for 6 months
6pts
Cost, payments, fix up all wrapped up into loan.
Property ARV = $200,000

My Calculations:

Loan amount = $140,000
(140,000 x .14) / 12 = $1,633 monthly payment

6 months down = $9,798
6 points = $8,400
$18,198 deducted from loan

140,000 - 18,198 = $121,802 actual loan

So this means that the purchase price + cost of repairs would have to actually be $121,802 to not have to put any money in?

Just trying to understand.

Thanks in advance,

Andrew

Post: Rehab loan & Fixer upper

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

Are you planning on financing with a FHA 203k or HML?

Post: Calculating Rental Rates

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

What method(s) have you found to most accurately calculate what a tenant will pay to rent a house? Especially if the property was not previously a rental property?

Thanks in advance,

Andrew

Post: Hello from Portland, OR

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

Hello all,

My name is Andrew, I am 26 and about to graduate with a Computer Science degree. I recently moved to Portland, OR from Boise, ID

I got interested after reading Rich Dad, Poor Dad which really made me think differently about money and how to spend it wisely. That interest lead me to Real Estate Riches by Dolf deRoos and The Beginner's Guide to Real Estate Investing by Gary Eldred. I also ordered the Rich Dad's Roads to Riches: 6 Steps to Becoming a Successful Real Estate Investor audio program and listened to it several times.

Now I am seeking to further my education by asking questions and reading through all the information on these forums.

When I'm not attempting to learn about REI, I love backpacking, hiking and camping. I'm also looking to get into rowing - either dragonboats on the Willamette or sea kayaks in the Pacific Ocean. I've also been known to take down a few beers at the pub.

Thanks for making this place possible!

Regards,

Andrew

Post: Duplex or Rehab?

Account ClosedPosted
  • Portland, OR
  • Posts 11
  • Votes 0

I was hoping to get into my first small deal by the end of the year. I can't stand watching $950 go out the door every month for rent.

I was under the impression that the FHA 203k loans could be financed with 3-5% down with closing costs rolled into the mortgage? I know the PDX area would be a little out of my small deal budget but was also considering the lower cost Vancouver area just across the river.

I do have a decent job considering the IT saturated market in Portland, but only make a modest 38k for salary. This might change when I graduate Spring 2008.

Another idea I was toying with was attempting to birddog if I can get a list of investers/buyers at the NWREI club. This would help me identify and analyze good deals and further my education while created additional capital. Are REI club meetings good places to meet someone who might show me the ropes if I sign a NDA/Non-compete? Also, would I want an LLC if I was doing this - my father can create them easily.

I appreciate any advice.

Regards,

Andrew