All Forum Posts by: Chris Watkins

Hi Lacey! Welcome to BP. 

The tough part about Roseburg is that it's just such a small market that focusing on an investor niche isn't going to bring enough volume to be meaningful. I'm in Eugene and a part of the local real estate investors association here and we have some folks from Roseburg who come up or join in our virtual meetings. For sourcing deals, High Peak Properties is a wholesaler that gets leads in Roseburg/GP/Southern Oregon area. There are also a few Oregon RE investor Facebook groups that you can join to make connections with folks who are doing deals in the area. 

DM me and I can send you contact info for High Peak and anybody else I know in the Roseburg area.

Chris

If I'm GC'ing the project and paying subs, I usually pencil $50/sf for cosmetic rehab, $75/sf for medium rehab and $100/sf for full gut as a starting point. If the deal pencils at those amounts, I'll do a deeper dive on budget. These are Eugene prices, but not dissimilar from K-Falls.

 That's great! Good to hear positive PadSplit stories.

Nice work! Is that income seasonal or long-term stable?

Hey Tyler,

As you know, cash flow is dwarfed by appreciation in Bend. If you're looking to buy again in the area, that's a wash when comparing properties. Transaction costs of selling, then buying will mean a hit to the equity that you have, plus a likely tax hit. The only way I would see it benefiting you to sell would be if you can step up your equity again with another value-add property to force appreciation or leveraging a more valuable property. It really depends on what you want your portfolio to look like, and whether this is an easy renter that will continue to increase in profit as the years go on.

Chris

Hey Manuel, welcome to the forums! Where in Oregon is this home?

FHA and 3-4 unit properties don't mix in Oregon, as most don't meet the FHA's self-sufficiency test (75% of rents cover your entire payment). Conventional loans can do a 2-4 unit with 5% down. VA can do multifamily as long as you are living there as well, but there are some other restrictions. Did you purchase your current home with a VA loan?

 Salem has a great investors group:

https://www.facebook.com/groups/salemre/?ref=share&mibex...

You can also reach out to @Lawrence Potts and he can connect you to folks in the area.

Where are you in Oregon? There are several investor meet-ups across the state where you can meet someone with the experience and willingness to help foster your development idea (or at least connect you to someone who can).

Hi Kalin!

I reached out via email as well, but the short answer is that a hard/private lender will be the easiest way if you want to buy and develop both lots at once, in one transaction. Then you can refi into a DSCR once the construction is complete. If you're 1.1M into the project at that point, $8k in rents will yield a DSCR potentially below 1.0 which would limit your loan options. I'm happy to help run numbers if that would be helpful or connect you to a hard money lender. I can help with the DSCR on the back-end, but you'll want to be sure that you've got your exit strategy nailed down before the initial purchase.

@Leah Smith DSCR that allows STR income is likely your best bet. Rates right now will be around that 8% figure depending on LTV, credit score, etc... With 30YF full-doc loans still at 7%, 8% isn't bad at all.

Reach out if you want more info!