All Forum Posts by: Brandi Carballo

 Thanks for the info. I will definitely look it over before I make any decisions.

@Adam Schumacher nope, you do not have to live there at all with a conventional loan, you will just have to put 20% to 30% down. But you will also have to qualify for the loan with your current income, all lenders will want 2 years of tax returns showing rental income to count any potential income from the property.

@Timothy Daniels Thank you! I had not thought about it from that perspective. I will definitely do that from now on. That is exactly why I love BP. 

I do want to make money, but we also love the coast and would use it a lot when it is not booked (but would never black out a time for our own vacation). But income is primary, although I would be fine with it if the income was on the lower end, I would not be ok with it if we lost money (ie subsidizing a vacation home).

@Teri Feeney Styers Thanks I will definitely check that out!

 It was actually a pretty small tree, maybe 4 to 5' tall. I could lift it myself and I'm kind of a wimp. lol

So it sounds like he's asking you to cover the 3% commission if the seller doesn't cover it, but he should know if the seller will pay that or not and be upfront with you about the exact amount you would be asked to pay.

It also sounds like he is passing along the $300 charge for the 3rd party service to submit the offer to the seller. 

Are both of those things customary in your area? I can tell you where I live neither of those things would happen. Seller always pays the buyer's agent's commission and I have never heard of a fee required to submit an offer. That being said, that doesn't mean that isn't normal in your area. Have you talked to other investors or agents?

If these things are completely normal then it is probably what you would run into with any agent, but if other people say that isn't right then you have 2 options - you can call a different agent and ask them to represent you, or you can talk to this guy and ask him to explain the contract and fees.

Insurance varies from area to area, get a quote from an agent. I only pay about $475/yr for insurance on my rentals in Oregon.

Other than that I think your numbers are good. When buying my first rental property I failed to account for maintenance and CapEx. Luckily, it was a great deal on a great property and I still cashflow, just not as much as I thought I would.

It is getting harder to find good rental properties out here, too. There are areas where it just doesn't pencil out. 

Good luck!

So I'm in the tail end of a rehab, already under contract. I bought a magnolia tree and some azaleas. I am extremely familiar with the neighborhood, I grew up in this house. It is a one lane, dead end gravel road, very safe area. The kind of place you can leave your shop unlocked and not have your tools stolen. So I go home for a few days and come back to find someone stole my magnolia tree and azaleas.

They left my kids' brand new bikes, the grill, the $300 ladder.....but took the plants. What is wrong with people????

I did leave the azaleas out front in plain view, I put the magnolia tree (about 4' tall) behind some large peonies so it couldn't be seen from the street, except if someone knew the house well they would know that wasn't there before because you could see a little bit of the top sticking up.

I'm so annoyed, I've known most of the neighbors for 10 years, some of them my entire life. Part of me wants to think it wasn't any of them, but really who else could it have been. Ugh.

And no, I'm not devastated or anything, it was less than $100 loss, I'm just annoyed and a little perplexed. 

Well, it's a little too late to offer actual advice, lol. But...hello fellow Oregonian. I live in Independence, just west of Salem where I own a 4 plex. 

Personally, I would have dropped off a written notice that I was the new owner with my phone number and email address and instructions on how to pay rent. Since it was so close to the first I would have included a self addressed stamped envelope and asked the tenants to drop their rent in the mail. 

As for when it is due you would need to look at their current rental agreements or leases. You can't change terms like when the rent is due, when it is late or late fees without a 30 day notice if they are month to month, or if they are on a lease you have to honor the terms of the lease for the rest of it's time. 

You always pay taxes on your rental income. You need to talk to a CPA, there are a lot of deductions you can take to lower your tax bill. It doesn't matter if you live in one unit or not, rental income is still income (obviously it will be less if you are not renting out one unit) and your deductions may be different.

You usually need to be an experienced landlord for 2 years before a bank will consider your rental income as income (2 years of tax returns), so until then you need to qualify for the mortgage on your regular income.

If you get an FHA loan or something similar and live in one unit, you are supposed to live there as an owner-occupant for a minimum of 1 year.

I definitely would not believe anything the seller says. Even if they are not lying, they may not realize that there is a problem. Most people think what they have is worth more than it is and is in better shape than it really is.

Just judging from the pictures, the house was not well maintained, so I would say everything (hvac, plumbing, electrical, etc) is going to need work, if not full replacement. Where the roof leaked and was patched you also need to look in the crawl space and make sure there is no rot or mold on the beams between the ceiling and the roof. 

Good luck! I hope it works out for you, but if not....just move on to the next deal and take this as a good learning opportunity.