All Forum Posts by: Justin Leithem

Hey local Portland investors I have a question. I just closed today on a rehab project that I was intending to fix up and flip. I paid 150,000 for it and think that my $40,000 budget Will be sufficient to get it looking amazing. A comp sold down the street for $262,000 in a couple days so I'm shooting for something near that price point. However I also discovered that it is zoned residential high density which allows for a minimum of seven units with no maximum limit. Obviously the size of the lot will dictate how many units I could ultimately get in there but this zoning designation is pretty crazy in what it allows for developers to do. I'm definitely not a seasoned developer by any means and wasn't intending on developing this but I'm wondering what my best option would be to maximize returns. Have any of you ever dealt with this zoning before or have any advice for what I should do? If I decide to go big and add more units then I definitely would need to get an investor involved so that is something to consider. The property is located off of SE. 126 Ave. Near Stark. Thanks for any input.

Veristone Mortgage has been good so far. They are financing one of my flips right now. they require 20% down. 

hard money lenders usually want 20% down. Atleast the one I am using does..veristone.  You can either find a partner to come up with the money or the slower route of getting a Heloc on your house and using that to fund the down payment. Or just call some hard money lenders and explain your situation and see what they say. Can't hurt and you will learn something. 

Thank you both for your information! I really appreciate it. I want to make sure it's done right to avoid any pitfalls when it comes time to sell for sure.

Read everything you can find. I recommend the whole Rich Dad Poor Dad collection, including the affiliated books by Ken McElroy, Carlton sheets, and a few others. Listen to BP podcasts, and find a mentor. If you can find someone to show you the ropes, you will do yourself a great service and take years off the learning curve. It can take some time to get them to take you under their wing but if you show them you are serious and offer to help them in their business however you can, they will eventually bring you into the fold. I got my license in 2012 knowing that I really wanted to be an investor, and it turned out to be a very great tool to help me begin my investing career. It took me longer to acquire my first multifamily than I wanted but I also didn't have the assistance of BP. I closed on a 5 unit apartment a month ago and am about to close on my second rehab. I found that having the income from being a residential agent coupled with flipping houses, helps me acquire rentals quicker. Hope this helps. Good luck!!

Hello, I am about to close on my first rehab project in the Se Portland area. I'm curious what I can expect to need permits for and what that process usually looks like? How long does it take to get them, how much etc. I'm specifically curious about adding Windows, removing interior non-load bearing walls, widening doorways, adding doors and moving toilets. I'm planning on going to the city to get it from the horses mouth but I was hoping for some input/advice from experienced investors prior to opening up that can of worms. The home is a 1926 bungalow that's been remodeled through out the years, new electrical and plumbing, etc. Thank you for any input!

I went through the same thought process! I thought about selling and capitalizing on the appreciation I've gained since when I bought my sfr in 2013 however my interest rate is so cheap and rents are so crazy around here right now, that I can cash flow about $600/mo if I decide to turn it into a rental. Since my long term goal is to have enough cash flow to pay bills and the lifestyle I choose, I decided that maybe selling wouldn't be in my best interest. So I got a HELOC through US Bank and they gave me 90%ltv which was a lot more than I expected. I am under contract on my first rehab project at the moment and plan to use the Heloc money in addition to a HML to finance it. I know helocs can be dangerous if not used carefully so as long as you have a good exit strategy you should be alright. I went through veristone mortgage for the HML and they will pre-approve you just like a conventional loan for the most part. All that being said, this is just the way I am going about this.

 A lot of homes are going fast and with cash right now so if there is a good deal on the table you may not be able to get it with the conventional loan if you were up against other buyers using cash. So that is something to consider.  Also, you would have to make sure that your bank would be able to refinance a home you bought with hard money in a short time frame or else you're carrying costs would be pretty high while you waited Out the minimum time frame banks want. Most are 6 months that I found. 

  Are you only interested in cash flowing single-family homes or in multi units as well? I just closed on a five unit apartment in eastern Oregon that cash flow is pretty impressive. It's tough in our area right now to find something that cash flows without putting a ton of money down.   PM if you want to talk more. I'm also an agent in and around the Portland market if you need help finding deals. Hope this helps. 

Hey Mary, 

Welcome to BP! It's such an amazing resource to help you expand on what you are already doing. I live in Sandy as well and would love to hear all about your real estate experience. I am under contract on my first flip in the Portland market, and just closed on 5 units in Madras,OR.  I've been wanting to start a investor meetup in Sandy for awhile now, so it's nice to know there are others already here!