All Forum Posts by: Eric Gabriel

@Michael Gregory let me know what you have in mind. How long do you need capital for? If the purchase price + repair costs is less than 60% of ARV show me some numbers. Then we can talk about cutting up the rest of the pie. It depends on the comps, time to rehab, and the risk.

I rehabbed a 3-plex by myself once.  I lost more money in lost rent than if I had hired out more work.  I was 23 and too young to manage others let alone myself.  Did I say I was getting married at the same time?  I learned a lot at that time.

@Mike Hanneman, I'll post my inspection reports.  My mistake on the rent increase number (not $1400 that's for another property).  I was informed that $1100 is considered affordable housing now and attainable for these units.  I asked her for conservative numbers.  She initially said $1200.  It seems she and craigslist are accurate.  She was also referred to my by my trusted realtor of 15 years. 

 https://www.dropbox.com/sh/ruqdxc20vsqab20/AAC5iCe...

3 units x $300 conservatively = $900

I just spent $2000 on a turn. 

I pay 5% for my property management.  Economies of scale. It's not worth it for me to manage the legal aspects.  I don't mind doing marketing and improving processes, but they do about 80% of what I did for 20% of how much it cost me to do it at my rate.  I wouldn't charge less than 20% to manage property.  I have a high standard and that doesn't work well with affordable rentals. 

@Madeline Burke, thanks for offering screening.   Do you charge standard rates?  Send me your contact details just in case.  Do you call references too and take notes? 

@Steve Moody, there is deferred maintenance for sure, then I'll go beyond that and do some updates to cater to the market that will hopefully still be there when the market adjusts.  Thanks for the words of encouragement and advice.  Firing away.

That's right @Jeff B. Please send over the property managers contact details if you would.  I have another on the back burner, but I would like to discuss their experience with the area that my plexes are in.  By the way, I haven't managed my plexes for 8 years.  When I managed them, they looked and performed better and I didn't do nearly the same amount of credit checking that they do.  Thanks for the coffee offer Chris.  I'm in South Korea right now so that coffee will have to wait.  :)

Sorry, it's a little bit of a rant.

FYI, the reality of being a property owner/landlord in Portland, Oregon. It looks like I have to pay for my previous renter's damages ($2,170.48). It would be nice to not have careless renters. I get tired of updating things then nobody caring resulting in damage to the property. I myself still drive a compact car, drink water out of the faucet, and deny myself the same updates that I give my renters. In turn, the city is squeezing me out by raising property taxes (among other regulations) so I'm forced to pay more without receiving more. I try to pass that down to the renters, but that can turn into a problem with my renters because then it's me not offering more for higher rent. I'm viewed as greedy at that point.

I still enjoy helping people get affordable quality housing, but the factors I discussed above drive prices higher. Now I'm in a position that if I don't borrow upon the equity built up in my properties, or at least invest more in an update and hike rents by $400/mo/unit, which the market says is possible, the increased value/taxes, and careless renters, will eat me alive.

It's a one sided love. Landlord 😍 -> Tenant 😛

The question is.  Should I update the units by tapping into my equity?  I'm not sure current prices can sustain themselves.  I don't really want to sell and move to another market, but that is on the table.

By the way, anyone in Portland know of any good/affordable roofers, painters, rehab contractors? I'm going to spend around $50,000-$75,000 within the year on 2 properties.

Great work Michael.  What next?

I get that feeling as well.  I'm basically paying retail and the financing is in a current condition that allows me to get all my money back out.

I have a preliminary appraisal that supports the ARV with recent comps.