All Forum Posts by: Kelly Asmus

Do your due diligence and research your neighborhood. How many STRs are on the market? What do they look like? Pull data from AirDna. Are you even allowed to have a STR - check local regulations. What kind of investment do you need to put forth to stage it and do you have the capacity to manage bookings/cleanings/maintenance/etc? Answer those questions and you'll probably figure out your path forward. Secondly pull a rentometer report and figure out what properties like yours are renting for. Look at all the data, then make your best, informed, decision.

@Bruce Woodruff

Yes, some investors will flee to easier pastures but you are right for those of us who figure it out - we are thriving. So yes I am capitalizing on it being "difficult." There is opportunity when others are running the other way. Oregon has had rent control for several years and yes many sellers left. Those of us who stayed picked up deals, raised rents because there is a shortage of good rentals and we maintain market rents by raising rents every year, when needed, by the amount the state lets us raise. I don't have to raise rent every year, but I certainly evaluate it and decide if I need to, then I give a 90 day written notice to the tenant and I raise the rent. That's running a business. 

We all find ways to thrive in our niches. 

Regardless of politics we all need to find ways to manage our business and carve a path forward to success. We can't worry about things we don't have the power to change but find ways to adapt to market conditions. We're doing it now, we're doing it all the time. Regulations are just one more thing to maneuver and figure out. Market conditions are vastly different today than one year ago and we're all finding ways to adapt and move our projects forward. Government regulation is really no different in my book. Understand the challenge and find ways to thrive - despite the circumstances. Some of us live in very challenging cities with very unfriendly landlord policies and yet investors find ways to thrive. Glass half full vs glass half empty. 

Some ideas. Get a HELOC on your existing and use as the down payment for the duplex.

If you keep the SF as a rental they you can use the income to qualify for the duplex. Additionally if one side of the duplex is currently rented, you can use 75% of the rent to help you qualify.

I sell a lot of investment properties and these are just a few points that help clients. Yes, do be aware of the FHA 100 mile rule - which is crazy, but it's set in stone.

If Earnest Money was due by a specific date and never paid, then technically your buyer was out of contract the next business day that the EM wasn't paid. If they are an agent, they know this. 

You can file a complaint against him with the realtors board and they will investigate. They could fine him, restrict or pull his license. It won't help you financially but could help your investor community by getting rid of a bad seed. I agree with some of the other comments - he was probably shopping it around to wholesale it. Not a good move for the agent, especially if he is licensed. 

Suing for specific performance is an expensive and lengthy road for you. Best way forward is to take it on the chin, learn from this experience, relist it and move on. They wasted your time, don't waste any more of it by dealing with the inexperienced jerk. 

Agree with @Eliott Elias that the tenants are your problem. I see this over and over with sellers who don't want to deal with tenant issues. Now you can look at this as an opportunity for a lower offer since you're taking on someone else's problems - glass half full. I've been very successful at negotiating lower deals when knowingly taking on tenant issues for myself and clients. 

Cash for keys is one way. Talking to the tenants and explaining your intentions with what you're trying to accomplish is another. Maybe they would want to stay and would pay more if their unit was remodeled. Maybe you could remodel one unit at a time and move tenants around unit to unit. I'm not saying it's perfect, but sometimes there are creative ways to keep the project cash flowing and reach your goals. Working with tenants might prevent some damage. 

But certainly you need to follow all local regulations regarding evictions. That could get you in deep trouble. 

I am seeing many STR investor clients pivot to MTR due to certain markets being oversaturated with STRs and over regulated with permits/fees/taxes. STRs are such a small part of the overall housing stock but are getting a lot of local attention due to housing and rental shortages. I see cities limiting them by requiring permits. I see cities regulating minimum 30 day stays and I also see HOAs jumping in and also requiring minimum 30 day stays and I have seen up to 90 day minimums for some HOAs locally.

Instead of focusing on this ultra small segment of the overall housing market, jurisdictions should be finding ways to ADD housing stock to their markets. 

Agree with @Steve Milford. Oregon is tenant friendly so follow all the rules to the letter, give proper notice - in writing - of the rent increase. Also agree with @Suzanne Moore great communication with tenants makes a huge difference. My tenants also paid all throughout COVID when we all know they didn't have to. They see you as a person with a family and making ends meet. 

As a real estate broker, I tell all my new investor clients that they should self-manage for a while. They should learn every aspect of their business. Understand the lease agreement top to bottom and follow it. Take classes and stay educated on landlord issues in Oregon and Beaverton. 

There are people who need to rent and providing high quality affordable rentals is all part of the housing market. Don't be ashamed that you are an investor providing, paying for and maintaining good housing stock. There are a new wave of builders who are developing and building whole communities of BTR - Build To Rent. High quality, single family communities that are all rentals. We have to remember we're short millions of homes nationwide - whether that home is a SF, apartment, condo, ADU, etc. We need to provide more units, everywhere, all kinds. So the run up in prices is due to lack of adding more housing stock. Lots of investors are doing their part in small ways - converting basements to ADUs, adding tiny houses, building on empty lots, etc. Our communities need these extra units. We as investors are taking the risk, paying the permit fees, doing the remodeling and bringing these extra units to the market. We are helping the market, yes, in a small way, but it is adding available homes to an already anemic housing stock. So yes - keep adding housing!

I use Troy Reichlein, CPA based in Lake Oswego, OR. 503.653.9592. I'm duel licensed in OR and WA and own rental properties. Good luck.