All Forum Posts by: Jude Hughes

Hi Autumn,

I sent you a PM, I am interested in knowing what you have. 

In the end, I walked away. There was just no fixing the addendum and extension.

Thanks for all the advice, on to the next!

Hi Nicholas!

Welcome. It is a tough market here, but there is always something if you are patient and dig deep. Best of luck!

Just a follow up to Benjamin's outstanding analysis. There are some multi-family properties in Beaverton that you could get into. The city is dumping a lot of money into the Urban Renewal program, and some of the rougher areas are really coming along now. In 4 years, I have had rents in a 4-pleg go from $775 to $1225. In fact, I received 11 online leads just last night on a new listing at this price point.

Hi Lance! Welcome!

Hey Brad!

If you buy the multi-family at the right price, it will (should) cash flow better than a SFR. However, SFR's appreciate faster. Spread that across three separate properties and you will catch appreciation 3 times. If you go after the SFR's, you will be able to buy, fix, season, and pull your cash out for the next property. If you buy a 4plex, your cash will likely be tied up in it for quite a while, without a lot left to grab a SFR unless you can save quickly.

If I were you, I would go for the 3 SFR's and 1031 them in 3 to 5 years and roll into plexes later.

Hey Cameron!

I would look into SE from the 100 block to the 130s or so. Also, Milwaukie seems to have some deals as well. Try following the public transportation extensions and the big name retailers. In theory, you would be piggy backing off of their research, and they have the $$$ for research.

I have had good luck in Beaverton, but those deals are few and far between now. SE has been good to me, and I am still looking there, although the traffic from Beaverton is a time killer.

There is more of a play here than just equity. I like it for its location in business. This isn't just a cash flow play on the RE side. It also has the potential to land me additional clients and place my company in 1 of 2 remaining historic homes in my city, in an excellent location for foot traffic downtown. The structure of the house even looks like my logo.

Not sure why liking and wanting is a red flag. I put offers on properties I want, and typically I want them because I like them. In this case, I will probably be spending 50 hours a week here until I retire, and it will be the face of the company I built from scratch over the last 4 years. Don't get me wrong, I will walk away if the numbers no longer make sense, however they still do with the rents, even with the 100 years (rents tied to consumer price index).

Anyway, its not looking good for the seller. While she did encumber the land for a ridiculous amount of time, the cell lease says it runs with the land, and I am under contract for the land. Legally reviewed, attorney advised it is a done deal. She has been told to come to the table or prepare for arbitration. Her agents have distances themselves from the situation. Now we wait and see.

Thanks for al the advice and help on this one.

I had a rental affected by this. It was noticeable for sure, but the place still rented. The new tenant has now been in place for over a year, and there was no hint of the smell on my last visit. That said, perhaps a blanket obnoxious odors policy in the lease would suffice without causing a discrimination issue. Firing from the hip here but maybe:

"Tenant to return the home in the same condition as it was rented. The home must be returned cleaned, free of personal item, and free of smells. Obnoxious smells will result in the use of an Ozone generator at tenants expense, at the cost of $50 per day for the rental of the machine. Tenant will be charged pro-rated rent for time off market, until such time that the unit is returned to its original condition. Tenant is advised to...".

Here's an interesting update. This morning, I receive an addendum from the seller asking that I agree to let her keep the rents from the tower, and that I agree to the new addendum to the cell tower lease agreement. Well, the new addendum extends the lease out to 2117. I say again, 2117. Not 2017, 2117! Additionally, it gives the cell company another 170 sf of land, which we are in a signed contract on (my parking lot, potentially). That was all my fair bones could handle. I've packed it all up and sent it on to my attorney. We called the sellers agent, and he was unaware until this morning that she had entered into a new agreement regarding the tower, while under contact with me. This reminds me of a saying, something about nails and a coffin. I think she put the final one in.