All Forum Posts by: Lester Appel

I have a question with regards using the calculators regarding the 50% rule. This deal looks ok on ROI and cash flow number but if I hit the 50% rule it shows a negative number (not good?) how vital is it that I get a good number there?

thanks David,

I have not been in touch with the bank yet and the listing agent has the same last name as one of the owners ( wife perhaps?)

I inspected the place briefly and feel at my price or slightly higher the deal is good for either buy and hold or flip.

I have a business in the Bay Area and have some real estate their as well. Like SF the market on Portland is somewhat inflated, certainly heated up. Allowing for that this is an area ripe for future expansion. Using the calculator here on BP I estimate 13 to 15 % ROI as a rental.

Market value and tax assessed value are very near my offer point but with some TLC I think I can refi to a fixed loan in a few months to pay off a hard money loan. I have enough funds to complete this transaction if that does not pan out but would not be doing another deal for a while if it doesn't

After some time here on Bigger Pockets, and having run a number of properties through the calculators I decided to offer on a short sale property. I viewed the property with the help of a real estate broker whom I had earlier viewed listed multifamily properties. This Re-Max agent in turn has submitted my offer. I contacted another Bigger Pockets member who has been helpful and asked about hard money lenders who might be available and am awaiting a call to discuss their service.

Here are a few facts around the property

• It was listed last July and an offer was made in fall and ultimately rejected at which point the sellers upped the selling price
• There are 2 lien holders and a large debt for water which is over 10K

The water is presently off and there are some problems in the plumbing (leaks probably due to freezing)

I reasoned that even though my offer was likely lower than that previously rejected, It is a cash offer and things have probably declined since the last offer (leaking pipes) also there is room for a counter.

If anyone has advise for me about short sales or any good information about doing this deal in Portland, Or. I welcome the input. I am also interested in finding the right hard money lender and there are none listed in Bigger Pockets for Oregon, so additional contacts there would be helpful.

Everybody wants something for nothing, and I will wager there are many here on this site who look for a pot of gold and do not think they will have to work hard or sacrifice for it.

That's not my experience. 

I have worked hard for 40 years at a trade, along the way I managed to buy real estate and start a business I have 32 years of sweat equity in that business and believe me the wolf is always at the door.

I am surrounded by people who do not know the value of a dollar. Filing bankruptcy is a bad idea in my view especially at 20 something? What do you learn from that?

I would like to see photos of the place and hear any other information you have with regards to the property.

Welcome from another newbie. I moved to Oakland in 1978 and own a business in West Oakland. I also own a duplex in El Cerrito.

I currently reside in Hood River, Or. and am just starting to get serious about real estate investing. 

Like you, I am also just building a network so feel free to add  as a contact  if you like

Well I have been here (1/2 time) since 1991. My other residence is in the SF Bay Area where I have been commuting to for over 20 years (long story)

Property in Hood River is similar to that in Portland. It is a hot area and there is little rental stock. I own a home up valley I rent out and live in another located in the Heights in town.

I have looked for multifamily property recently in Portland and it all has looked pretty inflated to me.I am currently looking in The Dallas as I feel there is greater potential for growth and there are still deals to be had there.

Are you invested in Portland? I might be open to some type of property swap for the right thing there.

I am looking at a property that has been on the MLS for over 200 days. I like the area and am comfortable with the neighbourhood and its growth potential.

I just spoke with the seller's realtor and found that at least 2 offers fell through because the lenders will not lend on the property apparently because of the lot being a single lot with 2 single family homes. The lot is R2 and the homes are legal (perhaps the second being a mother in law unit) but there is not sufficient land to separate the homes into individual tax lots. 

I am seeking advice on how to proceed. I ran the property thru the rental calculator and am prepared to make an offer but if the previous suitors could not get conventional loans how can I? 

I am happy to hear what alternatives might be. I am just getting started in serious real estate investing so your input is welcome

it simply implies that one buys the property and prays that it will appreciate

(A bit of humor here)

I cannot claim that line, it is from Brandon