All Forum Posts by: Josiah Kellerman

Hey @Seth Michael Carp, I am an agent in that area and my wife and I have house hacked a couple of properties in the past couple of years. I sent you a DM but Eugene is a tough market right now for sure!

Hi Troy,

I am an investor and a Realtor in the Eugene/Springfield area. It is definitely a tricky area to invest in if you are only doing long-term rentals and trying to be cash flow positive. It is almost impossible, to be frank. Not to mention the landlord-tenant laws that some of the other comments state make it a little bit less desirable. With all that said, my wife and I bought a BRRRR earlier this year and a Duplex and also completed an ADU in our backyard. The only way that we can make it work is by renting to traveling nurses/professionals. Renting out furnished rooms or a whole furnished home.

If I were you I would consider buying a home close to hospitals and renting a furnished room to a traveling nurse and see how you like that and go from there. 

Good luck and don't hesitate to reach out if you have any questions or need any recommendations. 

Quote from @Tyler Fontaine:

Im sure you have already considered this but it's always good to make sure that your comfortable with the cashflow at market rents. Depending on your investment strategy longterm it could be great to shoot for higher rents by getting traveling professionals or even an STR.

But the deal should make sense even if you have to settle for just market rents.

By the way, big congratulations to you and the wife on the first house hack. Love to see it!

Hi Tyler,
We are totally on the same page. We will be living in our side of the duplex for about 6 months and will be completely updating our side during that time. When we move out we will be renting to traveling professionals. Also by the time we move out, we will be able to raise the rent on the other side to our long-term tenant. Within about 7-8 months we will have money to set aside for cap-X, repairs, and other expenses and have a little bit of money left over. 

At this time we will actually be renting out our now personal residence for over $1000 more than our PITI. We will be renting to some people who are nurse practitioners. That is what allows us to feel a bit more comfortable about it as well. 

Thanks for commenting!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $391,000
Cash invested: $20,000

My wife and I bought a duplex with an FHA Loan for us to move into for a year. One side is updated and rents for $1,300. The other is occupied as well and we have given them notice to vacate. We plan to house hack for the first year and then move out. We will then rent one side to a traveling nurse or other traveling professional at a higher rate.

What made you interested in investing in this type of deal?

The ability to eventually rent out one or both sides to traveling professionals for much higher than market rents and get some really good cash flow.

How did you find this deal and how did you negotiate it?

Found it on the MLS and there was one other buyer that was interested. I found out what they offered and we offered 1K more than them. Within escrow, we negotiated for the seller to pay for all our closing costs as well as a few electrical and plumbing repairs. I am a real estate agent and so we gained ownership of this property with about $5,000 because of my commission.

How did you finance this deal?

FHA loan from Summit Funding Inc with the David Kammerer Team. %3.5 down.

How did you add value to the deal?

We are putting in all new flooring and new interior paint to one side as well as adding ductless heating and ac to both sides. Also, the property has no fence and so we are adding a fence as well.

What was the outcome?

Still very early on!

Lessons learned? Challenges?

I'm sure there will be plenty but still too early.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our Lender Dave Kammerer with Summit Funding Inc in Eugene Oregon

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $226,500
Cash invested: $75,000

This is a BRRRR Investment property that my wife and I purchased. It met all of our criteria... Which is very rare! One of the biggest things is that it has a detached garage that we can turn into an ADU. It also has attic space that can be turned into a living space fairly easily. Adding the attic space will add almost 400 sqft to the property. In other words, it will add a lot of value to the property. This is our first investment property and we have plenty to learn.

How did you find this deal and how did you negotiate it?

Found it on the RMLS and did an escalation clause and got it!

How did you finance this deal?

Private financing from a friend.

How did you add value to the deal?

It is pretty much a 90% gut on this property. But two things we are doing besides updating is adding access to the attic to make it a living space. There is also a 24x24 detached garage on the property that will be turning into an ADU.

What was the outcome?

Still ongoing!

When calculating your cash flow for your property you should have built-in expenses that you set aside for repairs and maintenance as well as capital expenditures. That way you have money set aside for those kinds of things. another thing to consider is when you have someone sign a lease do they put down a deposit? Those tenants present would just get less of their deposit back theoretically. You would need to have some sort of paperwork stating that the items on the property were in good working condition when they moved in and they acknowledge it. That way you can enforce it. These kinds of things are part of having tenants. 

I am a local real estate agent in the Eugene and surrounding area. I’m looking to help investors who want to buy multi family properties. Not sure if that is you but would love to connect to talk shop about our local area!

Hi Josh, I am a Real Estate Agent based in Eugene. Please don't hesitate to reach out if you have any questions or would like to connect and talk about our local area. Let's get after it in 2020!

Hi Brint,

I am a real estate agent based in Eugene! I would love to connect and see how we can help each other meet our goals in 2020.