All Forum Posts by: Jay A.

@John Yeglinski

I purchased my first house in my early 20s in early 2007. Recession happened and everything hit the fan after that. Lost my job and couldn’t afford the mortgage anymore. Even living on chicken and rice. Literally, for almost a year. If I tried to sell I would have taken a bath.

I house hacked for a while but can’t stand roommates so I ended up renting my house out at a loss and rented a cheaper apartment that more than made up the mortgage deficit. Fast forward to today and that house is a cash flowing property with a boatload of equity that someone else paid into. The knowledge I gained from this experience was priceless.

I have averaged 1 house purchase every 2 years since. It is never as bad as it seems and patience and creative problem solving will help you through most situations. I wouldn’t sweat it too much. Save cash to create a cushion for yourself and be willing to get creative.

@Chris Gawlik

Thank you for sharing your thoughts. I think peoples actions they should take depends on their situation and long/short term goals.

I just got into contract yesterday for a rental. One level SFH in good neighborhood. If housing market crashes. I don't care. I am not selling it but I will still be looking to buy. If rents plummet 25%. That's ok. I just won't make as much money each month. If rents plummet 50%. I will do what I did during the recession and rent my personal home out and rent a place to live in that is cheaper to make up for the difference I lose on some of my rentals.

Prices are inflated right now in the Portland metro area but when will I ever lock in 3% on a 30 year investment loan again? Probably never. I have a solid cash cushion and am not over extended. Sure, I could hoard more cash and gamble that there is a crash I can take advantage of. Or, I can keep purchasing rentals that cash flow while someone else pays off my mortgages. Rentals are a good hedge on inflation as well, which is likely to happen.

I like hearing everyone’s point of view. Helps me make the best decisions to achieve my goals.

Father in law has 1.66 acres zoned R-18 which allows 12-18 units per acre. It is in a central location in town and properties to west and south have recently been developed.

The current house is in rough shape and will not finance. He thinks it is livable for him but realistically a tear down or a HEAVY investment to get it back into Shape and some of the items need to be done within the next year (like roof). 

Ideally, I would like to buy the property and just replace the house OR tear it down and build a new house on lot without sacrificing future development plans. That way he can Continue to live on the same land he was raised in a house that is habitable. After he passes or decides to leave, we would have options to Develop, live, rent, etc. Is it possible to build only 1 or 2 houses when it is zoned this way?

We have the money to pay it off now, but sinking several hundred thousand dollars cash into this property now unless we can generate income on it does not work with our current plan.

I Am open to other thoughts and ideas for this property but the key pieces are: 

We want to keep the land and not sell at this time and I know it will only increase in value

He wants to continue to live there

We have money but would want to generate income right away if we invest much. 

We are trying to figure it out and take action while we have time vs. an event that causes us to have to make a decision. Thank you for any input you have!

@Alissa Engel is absolutely right. Being Introverted is not the same as social anxiety or shyness. It may be true that many introverts are socially awkward but I don’t see that as a weakness. You will find that many people prefer honesty and a mutually beneficial partnership over fun when it comes to business relationships. Isn’t that who you want to work with anyway? Don’t put too much pressure on what you have to act like or how much you can accomplish in these meetings. It will happen organically over time.

Many experienced people have given some great insight on some questions to ask and how to prepare.

@Greg Dickerson thank you! It seems the $$$ does work better as 2 separate 4 plex. Mainly due to lower rates over time.

I found an 8 plex with a decent cash flow. It is actually 2, 4 plex buildings on separate tax lots (right next to each other). I have 3 live-in rehabs under my belt and 2 rentals but figured it was time to go to the next level. I will be purchasing my next property with a trusted partner.

My question is, should we buy it as an 8 plex? Or purchase each 4 plex individually? The terms and flexibility on a 4 plex are much more appealing than a commercial loan. Plus, we both have high paying W2 jobs and great credit and financing isn’t a problem.

What are the pros and cons of splitting and purchasing individually?

What are pros and cons of purchasing as an 8 plex?