All Forum Posts by: Erica France

@Tom S. Thanks, and let's see if I can do better than what the local bank offered you!

@Thomas S. Yes, those details are in my original post in this thread.

And thanks for your help and valuable questions! The land price is consistent with comps in the area, and yes, the current owner did overpay for the property and they freely admit this. Sounds like it was an emotional, not well-thought-out purchase.

Taxes would be under $1000/year, but I expect them to rise if permanent structures are built. Part of the flexibility in all this is I view PITI + improvements to the property as cost of living for my partner and myself, so all income generated will be bonus.

It's a buy and hold, with a twist on the BRRR strategy: instead of rehab-ing (because it's raw land)-infrastructure first, then two tiny houses are going on the property for rental income. The goal is to add 1-2 small cabins or yurts per year for a mix of short- and long-term rentals, with potential to develop a small RV park or tiny house village. If things go awry, it can always remain my principal residence.

I'm about to make an offer on a raw land purchase, which the owner will carry. What would you suggest for terms? 

Some context: There is a buyer's agent, and a seller's agent. The owner purchased the property in the early 2000s for ~$200,000 without the help of an agent and then learned a few "prohibitive details" about improvements that would need to be made to the property (cost to run power, drill a well, road work, etc.) They backed off their plan to short plat it into 3 parcels; meanwhile, their kids moved out of the area and suddenly they didn't have a compelling reason to keep/develop the property. They aren't in a hurry to sell, don't need the money, yet want to make as much of their money back as possible. The land has been on the market for 2 years, with no known offers. Asking price= $139,000. 

Here's my starting point: $125,000 at 5% interest, 10% down, 20-year note, no balloon payment, and no pre-payment penalties.

I realize that location, market, size of the property, improvements, monthly payment limitations, etc. all play into the offer and that is too much detail for here, so perhaps I could use the most coaching on what principles to follow and whether my starting point seems reasonable, insultingly low, or if I should get more aggressive.

Thoughts? Suggestions? Thanks in advance!

Thanks Justin! I am set per the referral earlier in this thread, but I'll get in touch if the need changes.

Excellent, thank you, Robert!

Hello! Can anyone recommend a realtor in the Washougal, WA vicinity? I'm also looking at Mt. Hood, Oregon, if anyone is familiar...

Hello! Can anyone recommend a realtor in the Mt. Hood, Oregon vicinity? I'm also looking at Washougal, Washington if anyone is familiar...

Yes, I intentionally am not opening up a discussion on whether to give gifts. I have an incredible tenant and this is to express gratitude for the excellent business relationship we already have, no expectations attached!

Your movie ticket idea made me think that, if you know your tenant well enough, you could also get concert tickets.

Another idea for the outdoors-y types: National Parks pass or state park pass

For those of you who practice holiday gift-giving to tenants, what ideas do you have for a gift? To start:

Gift card to a neighborhood restaurant or coffee shop

A book (about what?)

Gift card to an airline (e.g. my tenant's SO lives in Iceland)

Visa or AmEx gift card

Ski lift ticket