All Forum Posts by: Mathew Wray

@Susanna Perenboom

If you can refinance into a conventional loan, then that frees up your FHA eligibility again. By refinancing into conventional, you no longer have the original FHA loan so you don't need to worry about distance/relocation guidelines. It's my understanding that those only apply if you keep the original FHA loan and are trying to get a simultaneous FHA loan.

Happy to make some lender intros if you and your agent/fiance (congrats by the way-that's a good person to marry/have in your corner!) need an investor friendly lender who can help talk you through different options. 

Mathew

Rather than do it myself and risk missing something or not having it hold up in court when needed, I paid a lawyer to draft one for a partnership of mine. Cost less than $1,000 and was worth every penny if for no other reason that it really forced us to consider the “what-if” scenarios from a bunch of angles-some of which I know I would’ve missed doing it on my own. 

My .02-let a pro do it for you while you search for another deal. 

Sounds like you've been in the house a year...why not refi into a conventional loan and then use your FHA loan again? You'll likely lose some in closing costs and refi fees, but if it gets you your FHA eligibility back and allows you to do another low-down loan, then it may be worth it.

Morning Kelvin, 

Just to add some context-these rules are proposed (being "debated" again today by the city council-private/invited testimony was yesterday) but everyone I know seems to agree that they're VERY likely to pass. 

The criminal background section basically says that misdemeanors more than three years old can't be a cause for denial and felonies more than seven years old can't be factored in. Although the screening criteria and security deposit changes will probably impact business in a more drastic fashion, I think this issue is what will cause the most "what-if/unease" from people-probably because it's the easiest to explain and also will cause the most headlines for local news. 

As for me, I'm not ready to relocate my equity out of Portland (if you are, let me know!) but I am watching it closely. With the new statewide rent control changes many landlords that are behind on rents are not going to just be able to raise their rents as a hedge. The time for that strategy has passed. 

It'll be interesting to see how this all plays out-there are definite opportunities on the horizon...and minefields between here and the horizon!

Mathew 

I include them so I can charge premium rents in an otherwise small unit. My tenants are happy to trade less storage for no trips to the laundromat!

Also check your state laws-in Oregon, if we supply it, we have to maintain it. Not that the law stops some folks from putting it in their lease, but it’s not enforceable here.

Mathew

Mindy, thanks for spotting this and sharing with everyone!!

I’ve found that virtually everyone judges themselves by their intent and others by their actions. Rather than jumping to the “fire immediately” I’d suggest they call the realtor and see what happened. The whole point of using a referral is to be able to lean on the pre-existing relationships to help solve problems.

I can’t imagine the realtor looks at those pictures and is happy...so call and get them working on a fix.

I think polite but firm is the best approach-nobody I know likes having their work questioned and most people get defensive. So instead of saying, “that’s hideous...what were you thinking? You must be awful at your job!” Try, “although I could see that decor in a loft appealing to hipsters, I’m really not sure it’s the aesthetic that will attract buyers to this house. How are you planning on resolving this really unfortunate situation?”

That puts it in their court...then depending on the answer is how you respond.

And, as a final plug, this is why not all realtors are created equal...maybe your friend who just got into real estate or your neighbor’s cousin who does a deal a year isn’t the person to represent your best interests. In an ideal world, the agent would’ve seen the pictures and had that stuff yanked out of there and replaced before the client ever knew what happened or at least been the one to alert the client to a problem and have a solution.

Mathew

@Carter Doering

Hope you're doing okay with floods-I've got relatives out in Nebraska and it's looking pretty bad...stay safe!

Have to agree with Steve as an option...we generally recommend three courses of action for inherited properties: 1. Keep it for a long-term hold 2. Put it up for a quick sale as-is (either on the MLS or to a cash buyer) 3. Put some work in to it and then sell on the MLS.

Those three options really hinge on what the goal is, what the experience level is, and what the capacity is of the person who inherited the property. I always feel for the person who inherited a property-the situation can be really emotional and the last thing a lot of people want is to go through a rehab process while grieving. We often see people have big plans that (like Steve B. said) often don't actually provide the return hoped for. 

I'd make sure your Grandmother is getting good advice from someone who understands the market and can paint a true picture of of their options or getting a pro like Jeff involved to take the project off their hands. 

Either way, best of luck!

Mathew

Hey Ronald, 

I don't have much to add on the build front except that I was just having a conversation with our construction lender and we got on the topic of general price per square foot new construction that she's seeing...and it's 2-3X what you're building for in NY. Just want to make sure you're taking regional difference into account when you're building out your business modeling and forecasting. 

As for areas to relocate to...I'd check out Parrot Mountain outside of Sherwood, Yamhill county, or east of Portland out towards Estacada/Sandy/Damascus/Mt. Hood. All of those will likely be pushing over an hour to get into Portland, but will also give you what I feel is the best chance to find larger parcels of land. 

Best of luck on the move and let us know how we can help!

Mathew

Morning Stella!

It really depends on your long term goals and your risk tolerance. Portland and the surrounding suburbs are not generally (and I do mean generally-there are always exceptions) great cash-flowing markets. Many people put money here for longer-term appreciation and are willing to buy cash-flow with larger down payments up front. Others aren’t and are willing to go into less desirable areas of town, likely trading future appreciation, in return for a little better cash-flow. 

It helps knowing what you’re getting into. If you’re looking for 1% rules with low-money down in A+ locations for below market prices, then you’re not setting yourself up for success! But if you can balance between price, location, tenant, condition, and cash-flow/down payment then you can certainly further your goals here!

Mathew 

Morning Lance, 

You might also check with your HOA (if you've got one) before you get too far. Some of them may have their own rules about interior remodels that you'd need to contend with-independent of the other advice here.

Mathew