All Forum Posts by: Jeff S.

This 50% rule is good from my experience. In 1991 I bought 2 older (close to 100 years old) duplexes and an older house that was owned by a landlord who did as little as possible. Over a 20 year period my expenses (including all repairs, roofs etc.) averaged 47%. I manage them myself and am very frugal keeping long-term tenants happy. The last 10 years expenses have creeped up a little over 50%. This tells me to start increasing rents.

Being in Vancouver is similiar to my state of Oregon. I am with the guy who says take time to research the properties and if you can't travel then...Portland, Oregon properties generally are over mortgaged if they end up not being sold or are foreclosed prior to any foreclosure tax lien threat (in my opinion).
Jeff

I am rather frustrated that people say cash flow is in all 50 states. My experience with my properties in Portland, Oregon is that my return is around 2 to 3% on a cash on cash basis. I bought these in 1991 with break-even at the time but can in no way buy stuff here with a loan and get decent returns because of high values. I am sure many cities have the same problem.