All Forum Posts by: Gordon Forbes

It's really hard to give advice as there is always something overlooked and then I look like a dumb*ss... but here is my initial reaction. There doesn't seem to be enough upside to the "add an ADU". You can borrow $30k without adding the ADU and $75k with an ADU. Well, perhaps that's not so bad, it just depends how much more of a time, hassle, risk there is by adding the ADU in order to "only" get an additional $45k. If this wasn't the primary residence I personally would be more inclined to take the risk. You are already living in an ongoing remodel, do you want to prolong that pain, stress, mess, and strife? You also brought up a good point about whether Bend is already at peak housing values. That's always a tough call, but if you think it is then its harder to justify. For example; If housing drops 10% on a $100k house you have lost $10k, but that would be a $20k loss on a $200k house. Leverage works both ways, so if you really really believe there is lots of upside in your market then its an investment. If you aren't so sure then its a gamble.

One other consideration. If you add an ADU you will have reduced your potential pool of buyers to just those who want to be landlords AND live next to their tenants, or to those who need a "mother- in-law" apartment. At any given time there are only a certain number of people looking to buy in your neighborhood, at your price, that love your style of house... do you want to reduce that pool of buyers even further? Now if you felt that this was going to be your last home and you plan to have your ashes scattered in the flower bed when you die, then having that additional long term income stream from an ADU might be a great investment. Likewise if you felt this would make a really good duplex rental if you moved sooner. But, look at that scenario with fresh eyes, ie: would you or a potential real estate invester purchase this specific house with ADU at the current/expected future market price? If you didn't already own this house and were looking for an investment would THIS specific deal be the one you would jump all over, or would you pass and look at something else as a rental? Selling retail at top dollar to a HOME buyer usually garners a higher price than selling a rental property to a shrewd investor.

My 8 cents.

My best to you on all your endeavors.

We just sold our 23 unit apartment complex, and are getting ready to sell 2 duplexes that are next to each other. They are in Sutherlin which is just north of Roseburg. If you are interested in something that small we can chat. Also have 7 single family homes in the Roseburg area we might divest ourselves of, with 5 of them I can carry notes as they are free and clear.

Shoot me a pm if you want to chat about this local market. 

...from day one -yeah! (Stupid spell check)

My advice is join ROADC Rental Owners Association of Douglas County. Organization shares office space with Diana Wright of Raintree Management in Roseburg who is a past president, as am I. Oregon sec 8 rules recently changed so initial tenancy no longer requires a 1 yr lease, it's month to month from day one-year! A lot of HUD administrators don't know about this change yet. Even so, your HUD tenants may be on a lease.Join ROADC and attend the monthly meeting, seminars, and use the forms.