All Forum Posts by: Account Closed

You might consider staying in comparable (as much as possible) vacay houses managed by different companies (I.e vrbo and vacasa). I stayed in a large house on the coast last spring. (I think $260/night.) The washing machine didn't work and the hot tub was touchy too. We called vacasa several times over the weekend and no response. 

That'll give you a good sense of how each company manages things. 

What great ideas! Thank you all for sharing. 

I have one unit next door in a duplex I house hack. There are three young women living there. This year for the holidays I got each of them a mug from Anthropologie with their first name initial in gold. I made sure to wrap each one very nicely and wrote a small note of gratitude. I'd never done that before for tenants and based on the nice card they left me, I think it went a long way.

Another thing I do is renovate units in a period appropriate way, along with many of the original touches restored. For example in my 1958 duplex, I replaced the 1980s laminate countertops with a new patterned laminate that evokes a mid-century design. I even trimmed the edge with aluminum edging like they did back then. The refrigerator is new, stainless, and so is the sink, but I replaced the 1980s electric cooktop with a wide coil stainless Frigidaire cooktop from the 1950's. (All electrical up to code...) The lighting fixtures are all period. It gives the kitchen a retro modern flair with a lot of character. I did something similar in the bathroom with new tile etc. 

I also give them freedom paint bedroom walls as long as they restore it to the original color when they move. They are also free to garden in the yard or parking strip as they wish.

Periodically I'll ask if they need a furnace filter, or I'll just check in over email to see if there's anything they need.

I'll be installing solar panels soon, so they'll save on utilities (though their rent will also increase after their first year since I'm footing the solar bill) and feel warm and fuzzy about saving the planet. 

Speaking of which, they have a hybrid electric water heater and 96% efficient gas furnace.  These things are appreciated in Portland. 

I allow well behaved pets. 

Rents are high around here, but I try to stay slightly below the competition to attract good tenants. That said, I do assess late fees as soon as a tenant is late, so they know not to take me for granted. They've only been late once, which was an $80 lesson. 

Thanks for that perspective, @Evan Bellingar.  It would likely take a long time to replenish, unless I sell something.  And right now, I only have my one duplex that's producing good cashflow, even with me living in it.  

BUT if a 5+ plex can produce good cashflow, then I may not worry about having cash right away, and I'd do things to force equity in the new plex until I can refi.

You're nearby in Newberg; do you see great deals come across your desk very often, and if so, do you have any advice on what you do to find them?  

Welcome Kory! P

I'm relatively new to the BP forums as well, but I've been listening to the podcast for about half a year. So much great stuff here; it really makes me realize how much I don't know that I don't know.

We have similar strategies in the Portland metro area. I'm mostly buy and hold and I'm also looking for a good apartment complex to invest in.  Finding a deal around here seems to require some creativity, and that's the part I'm still figuring out.  And I'm learning that what you say about cash is true: it's king. 

Warmly,

Dani in Portland

Welcome @David Kent!

Welcome @Stephen Ashbrook! I'm a relatively new member too. There's so much helpful info and resources on this site that you'll have plenty to keep you busy. 

Wow @Jay Hinrichs! I clicked on this thread thinking it was just click bait, but I'm so thrilled to see you're actually doing this! Great that it'll benefit both BP and charity. One day I hope to give back like you.

Thank you to everyone who replied, including @Walter Key and @Justin Spaulding . (Yes @Wilson Churchill schedule E is what I meant, thanks.)

Thanks for the reminder about redemption rights, @Jessica S.  I've even heard of sellers selling redemption rights to multiple potential buyers for the same house (illegally). Crazy!

Yes I don't know the best way to proceed, it's true. And since bank investor financing on a residential MF (vs commercial MF) could be difficult because of my current income, I want to make the best decision with the cash I have. I could pay cash on a great deal, but it would probably become a flip (or a cash-out refi/HELOC if the COCR as a hold were really good).

I like the idea of staying close to home because of expected population growth over the next 30 years here, plus holding gives me more opportunity to add value/rehab/develop those properties. That would provide good experience for when I eventually develop a site from scratch. 

 Thanks for this feedback. I hear this from a lot of investors. If I'm willing to accept lower returns for the sake of being able to check up on my properties now and then (without the headache of trying to find and manage a reliable PM from afar), why then do you think this? My concern is that since I don't have a bunch of properties, one bad property manager that continues being bad, unchecked, can really hit me hard.

I have about $200k to invest in RE. I'm currently househacking in a cashflowing duplex and lean toward a buy and hold strategy. 

I'd like to stay within about 2 hours from home (closer is better). I live in Portland Oregon, a hot competitive seller's retail market with a median SFR price of $340k.

I'm looking for 1% rents of sale price + CapEx and generally focus on multifamily.

My question is, would you try to somehow find an amazingly cheap duplex (I prefer B to C+ class neighborhoods) for all cash, or use the $200k as a DP on a commercial multifamily of $700k or less? 1040 shows very little Schedule C income from the duplex and low income in general. Credit is excellent. Lots of student loan debt.

I lean toward getting a small commercial multifamily to greater leverage the cash and also because my personal income would not be as much of a factor as it would were I to finance a 4plex. 

What would you do? I don't know whether I should be on the courthouse steps to get a light flip and raise more capital, look for a reputable wholesaler for a good deal I can hold or flip, or leverage the cash with a bank (or other) loan. 

I'm also open to another househack if it's the right 3 or 4-plex, but that doesn't require all that cash.

Thanks in advance for your insight!