All Forum Posts by: Mathew Wray

Brian, This is a great way to get started and something you're smart to consider. However, like you asked, you do need to be really mindful of your end of the bargain. Check with your lender, but I believe there is a primary residency requirement of a year on an FHA 203K loan. That's what was required of me when I did the same thing. A year isn't that long to wait... Would they know if you moved out early? Probably not. But, you agree to their terms when they loan you the money so, in my opinion, it's the right thing to do and it'll start your investing career off on a good, honest note rather than a shady one. Best of luck! Mathew

Welcome to Bigger Pockets Will...

I'm starting to consider selling a house of mine in St. John's this summer when my tenants lease is up. In theory I've got a fair amount of equity in it. Still not 100% sure I'll go through with it. I'd be curious to hear if some of the other Portland area investors are going through the same mental games with their properties?

I'm going to throw another point of view out there. Other than all the options for what to do with the 20% (out of state investing, buying an owner occupied plex, etc.) and assuming you're dead set on the condo I'd do the conventional loan. Buy the condo in San Diego, live in it until you PCS and then rent it out. When you get to your new duty station or retire then use your VA to get another property there. That VA loan isn't going anywhere...wait to use it for your dream home or where you can get a lot of bang for your buck in a different duty station.

Or, use a FHA loan for the condo and put down 3.5% THEN save the VA for the second property and save the 20% for a third?

@Seth B.

Did you buy a duplex in Portland or somewhere else as an out of state investor? Another reason to pat yourself on the back if it was in Portland...our fair city isn't exactly 50%/2% rule friendly. I don't see many (read: any) duplexes for sale here for 85K that cash flow and don't need A TON of work off the bat. Either way, nicely done!

I had the same problem with my 60's era duplex, poor ventilation, poor fans, lots of humidity, poor insulation, and the fear of mold growth. I worked really hard to cover every base, had the fans upgraded, installed humidistat switch/sensors, increased venting and vans in the laundry area (next to the bathroom), and even bought a de-humidifier to go into the unit as well as reminding my tenants to run the fans, keep the windows open in the bathroom, etc. After all that it finally mitigated itself.

A good temporary idea to help bring home how home much moisture they're creating is to buy one of those moisture bags and hang it in their bedrooms. If the humidity is as bad as you say it is then the bag will fill really quick and show them, in a visual way they can't ignore, that they're inviting problems by not changing their habits. Also, if they're on a M2M or nearing the end of a year lease period, consider having them sign a mold addendum so you can, hopefully, hold them accountable for clean-up costs.

I feel your pain and wish you luck!

@Corey Davis

Alas, my answer was no for the buy and hold houseboats. I still love the idea, would love to own a houseboat for myself, and maybe when I've got more disposable income and can afford to invest "for the fun of it" I'll go for it. But for now, when my funds are limited I'd rather put the money back into my business or use it to buy a proven, land-based property. That being said, if I came across the right property at the price the "romance" of it might make me dip into my reserves and see if I could make a go at it :)

I know you've spent some time up here digging around the market. Did you find any houseboats that would work for you? I think a lot of people have trouble realizing that these are waaaaaay more house than boat. Whether that translates into a rent premium is what started this whole forum thread and still up for debate.

Mathew

Thanks for the first hand knowledge Ratho! I'll definitely check out their calendar and see if I can make a meeting. If I can I'll find you and say hi.

Thanks for the reccomendation Eric!

Welcome to Bigger Pockets Corey! I never got any real concrete answers from the question but have had good luck just meeting and networking with fellow BP members. There are a lot of us here in Portland so I think you'd have good luck reaching out to a few when you next come up this way. Who doesn't want to grab a beer and talk about real estate and rentals?

Hey Jeff, long time no talk. Sounds like you're doing great and taking advantage of the really tight market to pick up/convert another rental. I don't think you'll have much trouble renting a place without a garage. I think you should just offer it the going rate without the garage. I've rented places where the owner withholds certain storage areas and have been able to find tenants without much trouble. If the property is good and the location is nice then the tenants will come. As for the water heater and the circuit breaker I think it depends on the property. If the water heater is fairly new and in good condition and the property is in good condition then how many times do you expect to have to deal with a problem? Is the idea of two late night phone calls a year worth the savings and security for your cars? Personally, I think so...