All Forum Posts by: Joshua Udermann

@Jeremy P. @Neal Collins: I use that amount per room as an estimate of what the total property would rent for because it looks pretty close for entry level 3-bed homes.  I will explore sq. ft. rental price and 203k.  

Also, I would have renters pay all of their own utilities and lawn care. And I would never buy a property with an HOA.

@Brent Coombs: I currently am renting for $400 a month, going up to $450.  It's a steal, utilities, internet, everything included so it will be nearly impossible to find something to live in that I would pay less especially with 3.5% down, but yes I would be building equity.

Thanks everyone for the responses and insights!

@Jeff Wallenius Thanks for the response.  

I only kept property management fees in there for if/when I move to another location possibly out of state.  And okay, I agree vacancy rates are very low here, what is a better estimate, 3%?

Could you help explain how a hard money lender would help?  This is not something I have really explored.  If I understand the process correctly, they would give the full cash amount so that I could purchase homes that are listed as cash only, then I would do work on the property or find contractors to fix major issues, then go to a bank and refinance the loan, then payback the hard money lender?

I have been following the market in Salem, Silverton, Woodburn, Mt. Angel for about a year now.  Every property that comes up I run the numbers and I can never make the math work.  I did put in an offer on 1 property but lost to an all-cash offer.  There have been 2-3 other deals that I have liked but they all have required all cash deals..

I'm looking for single family 3-bedroom homes.
Rent estimate for the most part is going to be right around $450 per room or $1350 total for the basic entry level market home.

These entry level homes are ~$135,000 and most look to be requiring significant updates. 

For a $135,000 home, with 3.5% down.

P&I: 654

Tax: checking assessors office and most are $150-$200 per month

Insurance: $100

PMI: $106

CapEx (5%): $70

Prop man. (9%): $126

Repairs (5%): $70

Vacancy (5%): $70

Total Expenses: $1346-$1396

For a 'good deal' I would need to purchase closer to $120,000, reducing P&I and PMI by $84/month, which would be enough for positive cash flow.

Any thoughts?  Do I just need to save longer to make a higher downpayment?  My strategy is to househack, but the numbers need to work for when I move out.

Made an offer on a great fixer-up property. Kinda bummed to find out I lost a multi-bid situation.

This was only my 2nd time ever making an offer on a home. 

Property was on the market for $110,000.  
I offered $132,500, seller/myself splitting closing costs, 3% each.  
Final cash cost to get into the home: $7968.

There ended up being 13 other offers on the property and 3 were all cash deals.  Disappointed to have lost this one.  Looked like it would have been a great investment for the price.  Planned to do a small bit of work to make it more livable right before moving in and then house hacking and doing repairs.  I think rent easily would have been $800-$900 to rent the other two rooms.

Let me know what you all think!

3 bed, 1 bath, kitchen, living room, laundry room and huge 7000 sq foot lot.
http://www.zillow.com/homes/for_sale/53021469_zpid...

my long-term strategy on any property I am looking for right now is the house hacking method, living in it with roommates, after a year or two moving out hoping buying a 3rd place and continuing to rent the property.

A renovated house down the street sold for $198,000 last month. The problem with 'finding a deal' is that they do not exist at at $80,000-$100,000 in this neighborhood, everything that has sold in 2015-2016 has been in the $120,000-$130,000 on the low end. 

Can you explain why this would not cash flow well as a long hold? I understand the 50% theory. But if it is rented for $1400 today and my mortgage is $781 isn't that close enough? $619 a month over the mortgage every month sounds like a huge amount to be able to reinvest into the property. Rent is just continuing to rise in the area and could easily be $1500-1700 in a year or two when I might move out.

Hello, this is my first post here in bigger pockets, loving the podcasts and hoping to find some good answers and help here on the forums.

I am interested in a property in Keizer, OR (north Salem suburb).  The property is listed for $110,000.  They are taking offers on it under Monday.  
http://www.zillow.com/homes/for_sale/53021469_zpid...

The house is a 3-1 and needs some work, flooring and paint needed throughout, paint needed everywhere, everything is very dated and needs updating.  Other downsides, heater is oil heat, and no central AC (just small window unit), large yard is very overgrown with Himalayan blackberry bushes, and no garage (converted garage to living room space).

Upsides: decent condition wood flooring in bedrooms and about half of the living space area, newer vinyl windows in most of the house, outside siding in great shape, roof looks to be in good shape, and the most important upside is the neighborhood, excellent area.

Financials
There are already multiple offers on the property and they are accepting offers until Monday morning.  I plan to do some basic cheap work paint and new carpets/linoleum and then I want to move in and find a roommate or two.  Rent in Salem is currently $400-700 per bedroom.  I think this would be on the lower end of rent at least for the time being.  I plan to live in the property for the time being with roommates and then eventually will turn it into a rental so I want the numbers to work on it for a rental.

I think the house is below market value here, things are hot so I think $120,000- $130,000 or more might be needed as a bid to get the place.  I met with my mortgage broker today and at $130,000 monthly payments would be $781.  I think if I am out of the house it could rent for ~$1400-$1500.  Knowing that it needs a lot of work I want to be able to save as much off the rent for large investments into the house as needed.

What do you all think?  Should I make an offer?  What else do I need to consider?