All Forum Posts by: Brian Kloft

Are there any meet ups or get togethers for people that are dealing with the Oregon Coast? I am actually going to be up in Bay City (Tillamook) for the first part of February, renovating one of my units there. So if anything was going on then that would be amazing and weather permitting I would go to it. 

 Hi Kim, Have you found insurance for your property? I manage for others and own some properties here in Phoenix. Some of them that I manage are old properties just like you are buying and insurance can be a bear. One of the properties had multiple insurance carriers site wildfires as a reason for decline because of a small mountain across the street. The type of property that you have is what I have dealt with most of my RE Career. Let me know if you still need any help or advise. (Not looking for a listing, just offering to help.)

Right now it seems like information is the most important thing you need. To start you need to talk with your CPA. You need a starting point to know what you would be looking at for capital gains taxes if you do not or are not able to 1031 exchange it. You also need to get more knowledgeable about the 1031 rules. The time lines and rules are very strict. If you screw up one thing or are one day late you have to pay the taxes. You also can not do a 1031 yourself. You have to use an intermediary so you might as well start talking to them now. Realize that if you want to do a 1031 you have very little time after the property sells to identify a replacement property and close on it. Once you have an idea as to what your tax liability would be if you don't 1031 and what the process and time frame is if you do 1031 exchange the property; you can then start to make a decision as to if you want to sell or not. Something else to consider is that since you said you occupy half of the building, will you now or in the near future have to find another location for your business? Finally, when the property was put into your name how and what was the value assigned to it at that time? and was it documented in the right way? That is important info your CPA will need to know. 

You are kind of in a darned if you do darned if you don't. It is a matter of what are the odds of you getting an owner user vs an investor. The investor is going to want 2 or 3 of the spaces leased and if they are vacant then whatever number you claim for rents they will think it is a lot less and they will also not want to pay you as if it was full as they will have to take the risk, do the work and pay the commissions to lease it, so they will want to pay you a much lower vacant rehab building price. Obviously an owner user will want it vacant as they will want to occupy the space. I would suspect the odds are better at that size for an owner user. While I like small multi tenant office buildings as an investment the number of investment buyers for that size is not very big vs the number of owner users is larger. Plus there are owner users that may want to only occupy 1 or 2 of the suites and rent the other part out for income and have it for when they need to expand into more space. If you list it while it is vacant, do not market it to investors, make sure to clearly market it towards owner users. Also, I am assuming that this is not a medical office building. What state and city is your property located?

 Hi Jaelle, Sounds great. 

Hi Chris and AJ, and thanks. Currently I have a 5plex in Bay City (right next to Tillamook), a 3 unit in Lincoln City as well as a duplex in Lincoln City. I also have both residential and office properties in Phoenix, AZ. My background is as a property manager, for both myself and others. All of my properties are long term rentals. We are looking for multi tenant properties and are open to the number of units from 2 to 15 or potentially more but the best target is 3-10units. It really comes down to the right deal for us. I like ugly properties where I can fix them up very nice and get higher market rents. I am also open to a small multi tenant retail or office building as I have those down here in Phoenix. The key thing is we want them in the coastal cities. We almost bought something in Toledo but that would be as far inland as we would consider. We are also looking to expand further south down into Coos Bay/North Bend as with the expansion of the port I think that they will have some extra upside over the next 10 years plus. We will also be looking for a special property that doesn't fit our typical mold but it will be for us to use part of the year and the rest of the time rented out as a mid term rental, with a target area of Lincoln City and Depoe Bay.

Hello, I am an investor. One of the areas that I invest in is the Oregon Coast. I currently have properties in the Lincoln City area and the Tillamook area. I am still looking for other properties along the coast and am looking at other coastal cities as well, such as North Bend/Coos Bay, Bandon, etc. I would like to connect with others that have properties or are doing deals on the coast. In the location options for the forum they only have inland larger cities listed so I selected Salem so that at least an Oregon city was there. 

I think one thing to note is the recent vote in Lincoln County to stop all further STR and to completely outlaw them, even existing one, within something like the next 3-5 years. This is for all county land, not in any of the cities. I could see this type of thing spreading into some of the cities. I myself am staying in long term rentals and am actively looking for more. Also when I find the right property for my wife and I to use for part of the year we will turn it into a mid term rental for the other 6-9 months of the year. BTW good post, very informative.

There is zero connection between MLS and Costar/Loopnet. Unless the listing agent puts their listing on both it will not be on both. You will not find much or anything smaller than a 5plex on loopnet, in my experience. If the listing agent pays for a premium listing on Costar/Loopnet then you can see it for free. If they only list it for free then unless you have a premium account, you will not be able to see it.