All Forum Posts by: Kevin Jorgensen

Scott Radetich yes, I've considered that as well. I live out by the huge new Hillsboro development. Definitely growing fast out on the westside. Prices on homes also don't appear like they will recess like elsewhere, at least per the forecasts I've read.

Thanks for all the replies. I'm evaluating if REI is right for me. I have around 150k of equity. Both my wife and i have good paying jobs. We just have young kids so if I did something like the BRRR method I would likely need to pay someone to do the remodel/repair part as well as a PM after its rented out. Or possibly just going turnkey but that sounds like slim margins. I understand that undermines ROI but if it allows for the snowball to start rolling I'm ok with it. If it turns out I'm not a good person for BRRR I was looking into Fundrise until I become accredited level investor which would let me into something like Realtyshares.

Hello, Would it be wise to use a HELOC to buy first rental properties? Or do I just leave that alone and try the often suggested little/no down payment model? Also, from what I can tell my area is poor for rentals (Portland Metro), how often do individuals go outside if their neighborhood to find deals. Thanks Kevin

@Randy Johnston Thanks Randy. That is on my to-do list. I've done a once over of each website, and intend to sit in and learn there as well. 

I thought Realtyshares was going to be a good starting point, but just learned that I need to be accredited to take part. Close, but not quite there.

So those to REI clubs, and possibly turn-key with a PM are intriguing to me as initial starting points.

Also trying to figure out how my current skill-set might help an experienced person out and maybe learn a little as I go.

@Jason Hartman thanks. I'll check out your site. That's an easy price point to target. 

@Scott Radetich Thanks for the info. What you've done sounds like an intriguing path to learn more about.

@Jason Hartman Hi Jason, by your rule I'd need to rent out my place for 4,500, which isn't anywhere close to the rent here. I think at highest would be 2,500. Though I surmise that lower cost homes would be closer to your 1% rule. I'll have to refer to your blog to understand your position further.

@Scott Radetich I suppose I see my mortgage this way. Was a 345 dollar liability that only had a per year ROI average of ~2%. Had I bought during the recession, odds are my overall net worth would look better now.

Right now with three young kids, and a FT job I don't see how I could do rehab/flip/Rental-PM. I believe as the kids get older, and independent this is certainly a possibility for me.

I recently discovered turnkey properties. I have it in my notes to investigate turnkey-reviews.com by Jay Hinrichs. I have yet to have the time to investigate yet. 

I would also like to be able to decide if I should stay in my job in ten years. I'll be bored by then I'm certain, and the higher levels of the organization that I could get into are less appealing as they become more time intensive. Finding ways to create more time in my life is important.

That's an interesting plan that you pitch with obtaining two new properties, and renting two of the three out. We indeed are not in need of extra cash flow at the moment. I'll need to compare that against ROI I might see in an REI club approach (or this Turnkey thing). Is good to see another Portlander chiming in.

@Brent Coombs While I'm 'developing that eye"....Would you recommend REITs or Crowdsourcing (like RealtyShares.com) as a place to get my feet wet....then going to an REI Club for first bigger investments.....then get into a niche?

@Christopher Peterson We have an interest in selling the place as we have 3 kids under 6 years old, and our home is getting a little small and I'm not certain the schools are as good as I'd like to have. The space issue could be solved with having less stuff (which I'm currently working with my family on). But the schools I'd like to have resolved sooner than later. 

I like the idea of cash out refi....My initial instinct would be to put it into an REI Club investment as I'm yet familiar enough with choosing a niche, property, and wouldn't make a good PM myself. In that scenario, I'm presuming that my REI investment will be significantly better than the ~4.5% I might see in my property increasing.

Rent is pretty high, and I personally think our market (I see you're in Portland) is going to be solid for awhile longer. Plus I don't like the idea of moving my kids to a rental, then another new home, whenever it comes up. 

Correct about waiting, plus this is a buy and hold approach. I know, as of right now I can get a great rate. I can't be certain that house prices will come down, or that rates will stay low or return to low at the right time.

@Brent Coombs that's a fair premise. I'd agree with an experienced eye you can find bargains in any market. I did not know it was a model that did well, but I can see it plausible.

I would consider buying an ugly home, but would need to investigate it further to see how or if it appeals.

Brent Coombs thanks. You hit on something I was trying to figure out. The market I live in (Portland OR) is still projected to remain strong for awhile. So what I was trying to see what the combination of rates and price were to determine the right 'value' time to buy. Low rates and high price better/worse than higher rates and low prices. I'm new to the prediction and trend models for REI. I can see that we are nearing the end of up-cycle, but have read that the down cycle and recovery are predicted to not be as severe as the 2006 crash. So leads me to two questions: 1: if it's a bad time to buy a primary residence; why would it be a good time to invest in REI - aside from possibly following a DVA approach to REI like I would stocks for example. 2: waiting feels like I'm going to 'guess the market' - I'm not certain that housing prices will fall all that much, perhaps they just flatten out to match inflation (as I've read for my market due to strength) and I'm fairly confident that rates will creep up. I would not purchase a home that has a monthly greater than 25% of our net (and this is after maxing 401s). So perhaps you're under the impression that I'm pulling out the stops and shooting for a million dollar property? I very much appreciate your feedback. It helps me clarify my thinking.

Greg S. perhaps I need a better understanding of cash flow. I had never considered the theoretical value of what an investment would return if I pulled equity out of house.