All Forum Posts by: Logan Loughmiller

I'm in Portland, Oregon and interested in getting a loan quote from a Unitus Credit Union lender (they've been my credit union for 15yrs), but I don't want to just talk to any random person that's happens to be in a branch I go into.

Does anyone have a good referral for a point person at Unitus CCU for home loan mortgages?

Thanks!

I'm interested in getting a loan quote from a Unitus Credit Union lender (they've been my bank for 15yrs), but I don't want to just talk to any random person that's happens to be in the branch I go into. 

Does anyone have a good referral for a point person at Unitus CCU for home loan mortgages?

Thanks!

Has anyone had any difficulty with the Type B/3BR+ Portland Short term rental permit?

I was looking over requirements outlined here:

https://www.airbnb.com/help/ar...

Type A (2BR or less) seems pretty simple and inexpensive. Minimal to get approval and a $65 fee

VS

Type B (3BR or more) "required to go through the City’s conditional use land review process." with a whopping fee of $5800. 

My situation:

I'm investing in a 2BR property that I'm going to house hack (I live in an attached ADU) and will be relying on short term rental income for mortgage payments. I would like to convert it to a 3BR for ARV. I would do it right off the bat for the extra STR income, but I'm wondering if I should hold off on doing that at the start. If there's an intense process for 3BR+ approval vs simple 1-2BR approval, seeing as how that will be such a vital staple in paying my mortgage.

Anyone with experience on what the Type B/3BR+ process is like, first hand or otherwise, I'd love to know how it went. Even more so if anyone knows of people who have been denied.

Hi there! I know this is an older post, but had a quick followup question-

If I am currently not a host, but I do all the paperwork to become official FIRST, then if I buy furniture, make improvements, etc would all that be deductible? Would I actually have to have a short term renter in the space /recieve income or would it suffice to simply be on the books with Airbnb?

If I understand correctly, if I made improvements before my places is officially a rental on paper that I would not be able to deduct those things.

The setup:

I'm in the process of purchasing a property with 2 separate units, a 2/1 house and an ADU. I would be living in the ADU and STR-ing the 2/1 house.

Thanks!

Are there any builder/investors that have taken a *very* minimal structure kit from Home Depot, etc and turned it into a minimalist but permitted ADU?

Like this for example (barely meets the 300SqFt threshold): https://www.wayfair.com/storag...

Or something in the 5K-10K range that's similar.

My specific circumstances: Portland, Oregon. I'm looking at properties that will be a live in house hack. I will require a structure like this for my online retail business anyways if the property doesn't have a significantly large open basement or garage for inventory storage/fulfillment.

If I'm going through all the legwork to create a structure like this onsite, run electricity to it, etc. I was curious about how possible it would be to take the bulk cost out by using a kit like this and conforming everything else to meet the qualifications to be sold that way at move out.

Or better yet, if I land a space that does has a 2 car garage, etc and a large lot, building something like this for additional income.

I've found some, but it's all for large commercial or multi-family properties. I've had very little luck finding someone I can pay, for their expertise/contacts/assistance on how to invest my capital. 

Is this a profession? I feel naive even asking, it feels like it would have to be, but I can't really find any information on advisors for people whose investment goals are a small handful of rentals.

EDIT: Nevermind! Real Estate *Consultant* seems to be the vernacular that brings up this vocation.

Thanks for your valuable insight @Cassi Justiz ! Fellow (fish out of water) Texan here, I grew up near Tyler/East Texas. 

That makes sense and was exactly the kind of information I was looking for. From everything that I've absorbed from the Portland Market, I don't know why someone would consider an FHA if those are the circumstances (I wouldn't). 5% is fine within my budget, if that's the low end of normal.

I'm looking to invest in my first house hack in Portland, Oregon, but the market is VERY competitive right now. I'm in the lending phase and trying to decide what to go with. I'm wanting to do a 3.5% FHA or a 5% conventional to leave more of my funds available for additional properties.

If I put an offer on a home with an 3.5% FHA/5% conventional, does it make it a weaker offer and would I be likely to lose out over someone with a 10% or 20% offer?

I realize there are lots of other factors, ways to make your offer better with contingencies, etc, but wanted to get some real life experience thoughts on this. 

Thanks so much for the replies!

@Brad Hammond - I marked the master class down on my calendar, I'll be there. That makes sense. I wouldn't have expected rents to raise that quickly, I didn't do the math for the 7% allowable raise year to year, that checks out.

Do you think 5% down is reasonable in the current market? With the intensity of competition in Portland, does it weaken your offer position to have a down payment of 5% vs 10% or 20%?

So 6-12 months is a reasonable amount of time to go in for a 2nd property? Is that just the time necessary to qualify for another mortgage?  lol...That's about what I was thinking for the stability of my focus anyways. Potentially enough time for the market to be a little more stable, but I don't want to bank on that. There's no guarantees it will calm down at all anytime within the next few years. 

@Tim Delaney - This is true. For a while at least, till it reaches a considerable amount, I would allocate that to a repair savings. And regardless, it would become additional cash flow once I moved into a 2nd property. It will be a challenge to find a deal good enough to break even month to month at 5% down in this market! (but they do exist) Would have to be under 400K for it all to balance out that way.

All around that seems to be the most universal recommendation - As low a price as you can, as little down as you can, as many properties as you can. A little more intimidating, but leaves a LOT of opportunity for 130K if I'm putting 5% + closing into each investment. Don't want to get ahead of myself, but down the road that could mean 3-4 properties.

I do also plan on raising value/getting a better purchase price with some light rehabbing as well. Specifically seeking out properties with bad paint and outdated/shabby (but functional) kitchens and bathrooms. From my research those seem to be the points where the ROI towards a better appraisal value works out.

I had a bumper crop year during the pandemic with my online retail business and have 130K to invest as a first time home buyer. Online spending went crazy over the past year, I easily made triple what I had in years past, so theres no guarantees the future will bring the same/can't expect that for future ventures. 

Wanting to make the most of this egg and put it all into some serious real estate cash flow. I'm in Portland, Oregon, home prices are soaring. 

I'm really struggling with how much to put down/what kind of setup to go with. All 3 scenarios, when I number it out, I seem to only break even, no cash flow. Early stages of loan applications, decent credit (655). 

20% on one house - house hack duplex or 3BR+ where I rent out all the rooms. Realistically expecting to pay 350K-400K, which is a bargain here. I would break even on the mortgage/tax/insurance. (and not have to pay mortgage ins) Any repairs would be from other income. 

OR

5-10% on 2 houses, living in one. Adding up comp rents, still only covers additional monthly mortgage payment + mortgage insurance. Maybe a hair extra

OR

5-10% on house hack triplex/quad. Same - Adding up comp rents, still only covers additional monthly mortgage payment + mortgage insurance. Maybe a hair extra

A lot of what I read implies my numbers are off or I'm not finding good enough deals. Somewhere in here it seems like I should be able to setup a better cash flow. Should I wait till the market calms and get house #2 then? I don't want to wait on #1 and keep pouring money into renting. 

Quite honestly, I'm a little uneasy about NOT paying 20% down. 5-10% means a lot to be on the hook for if any problems arise, non-paying renter, big repairs. A big part of this uneasiness is that I haven't had my hands on this much money before and want to be very smart with it.

Not looking for a cheerleader per-say, but more seeking advice on things I might be missing/alternatives I should explore. I have considered just buying one house hack duplex, then buying a 2nd house when the market is more stable, possibly in out of town in a less expensive area investing in an Airbnb vehicle.