All Forum Posts by: Mathew Wray

@Kate Williams

There are exceptions in the extension if they are violating the lease in other ways (and you've properly documented notices) or threatening/illegal activity, so there are still a few outs but in general your summary was pretty accurate. 

Chris is right, you can look into some of the SBA programs and see if they can help as one option. I also like the idea of cash for keys at this point. I'm expecting the eviction judges to be overwhelmed when the courts really open back up for normal business (assuming the moratorium is truly ending in September) so if you can get ahead of the curve it may be worth it to just get them out now. 

Sorry you're in a tough position...another option if you decide to stick it out is to talk with an attorney and see about legal remedies to pursue the 17k (assuming they don't repay you before the grace period post moratorium is up). 

Best of luck,

Mathew

We've got buyers still looking for plexes...a couple took opportunities to pull equity out as Covid was hitting and are looking for LLs who are just over everything-Covid, city/state rules, taxes, etc.  

A bunch of those who wanted to house hack have fallen by the way-side for the moment. I'm thinking they likely had the most at-risk professions or tenuous financial situations/the most to lose so now they're taking a step back and pausing. I'm hoping that pause doesn't cause them to lose an interest rate that they'll envy for the next 30 years. 

Really curious to see if there's a big backlog of evictions when the moratorium ends in September (for now) and if that drives more mom and pop LLs to put their properties on the market. 

@Eva Splichalova,

I’m sorry it doesn’t seem to be working out any longer with your friend. Hopefully this doesn’t cost you the friendship on top of your tenant. 

There are a ton of factors involved here...like you said Portland and Multnomah county are challenging! Luckily, there are some provisions that are, generally, more in your favor because you live in the property. But even those provisions have some exceptions that are unique to every situation. Add in to that Covid and the statewide moratorium on evictions and you’ve got an even bigger mess! 

There are two options for you-read the laws and your lease terms (hoping you used an Oregon specific lease and not a generic lease downloaded from online??) very carefully, ask for advice here, and hope it all works out okay with your tenant. Or, pay a little bit of money and talk to an experienced attorney who will give you legal advice about how to deliver notice given your specific situation...which will save you money in the long-run.

I’m happy to refer you a name or two of attorneys if you’d like. The days of just giving opinion and experience on legal matters are in the past...with litigation in our city and tenant rights being so upfront, and your tenant is obviously giving you hints it isn’t going to be easy (otherwise you wouldn’t post on here), you’re walking into a mine-field. Pay a little now and you’ll save in the future! 

Best of luck! 

Mathew

Congrats on the big win for you with getting a solid tenant in there and paying rent. It'll feel really good when that rent check comes in every month...a payoff for all the hard work!

Thanks for sharing the numbers...it is always helpful to have as estimates when people "want to build an ADU" sometimes the reality vs. expectation can be challenging when it comes to money invested to make it happen. And good for you for thinking long-term and making it nice. Cutting corners would've bit you in the long-run and reduced your rents. If you're going to do the work anyway, might as well make it good!

Mathew

Congrats on the successful rehab and refinance. Have you rented it out or is your plan To use it for short-term rental in the future?

Would love to hear total cost for converting the basement with the understanding it’ll be lower than market since your husband is a handy guy!  

Congrats again!

Mathew

I. Love. This. 

Congrats on taking the long view, partnering with fantastic people at RareBird, and getting the deal done. Sorry that you had to go through tough, tough times in the lead up, but hopefully this is the springboard to a great, new future!

Morning Nathan,

Congrats on exploring a big jump-it takes courage to buck the news cycle and confidently reach for a bigger future!

I have answers to a few of your questions while I’m sure spec builders here can chime in on their end for you. 

While Portland may not require parking, I would strongly consider it if you’re thinking you’ll sell them individually as condos, especially in the Jade District. Yes, you’ll have good transit access along 82nd but I believe you aren’t as likely to attract the car-less owner there as you would closer in. 82nd is changing, but I don’t think it’s happening fast enough to justify leave out permanent parking if you’re reselling individually. You’d be more likely to get away without parking for tenants but even then, what kind of tenant are you going to attract? If your target tenant is looking for a car-less lifestyle then you’re going to be competing with units close-in so you’ll have to win on price or features to get them out to 82nd. All that being said, it might not be worth the cost of putting in parking, just be aware on the front end that you’re reducing your end buyer/rental pool by not having it. 

Have you comped our what four condos will sell for vs. two duplexes? While you don’t have to decide this instant (you could always convert later) it’s good to have an idea of the market differences between mf and condos. 

As for soft costs, you're looking at a fair amount for a condo conversion-there are legal docs to have drawn up, reviews, surveys, recordings, setting up the HOA, reserve studies etc. There are attorneys who will help navigate the process for you and act as an orchestra conductor to keep things moving along. I've got a lender who is a problem solver and loves geeking out on the minute details of these problems (it's what makes her a great lender) and she could be a great resource for you...she's put together condo conversion workshops with experts all talking about their components. I'm happy to make an e-intro.
 

The 80/20 rule applies to most things in life but in Portland real estate it’s more like the 90/10 rule...10% of the agents do 90% of the work. The best way to find an agent with the skill sets you’re looking for is to ask for referrals from people you trust or on places like BP. There are a handful of active agents here on BP in the Portland area (including my business partner and I) who would be good places to start. I suggest creating a list of questions that are important to you and start asking!

You said you’re not sure yet what route you’re going to take and I applaud you for doing the investigative work now, before you break ground! One last thought, have you considered just selling to (or trying to partner with) a developer? You’ll make less money but you may learn more along the way for future projects or reduce the headache factor (which can be significant). Not saying you shouldn’t move forward, just that all options should be on the table! 
 
Mathew

I’ve never had a tenant pay for back flow testing. Maybe I’m missing the boat, but I view it as a infrastructure for the home. If the water main needs repairing you wouldn’t charge the tenant for repair because they’re responsible for water utilities. Look at it from a different angle, if the tenant is responsible for keeping the yard clean, but a tree falls through no fault of the tenant, would you expect the tenant to have the tree cleaned up? It’s just a cost of owning a rental. 

I’d also be asking questions (and maybe it’s obvious and you’ve already done it) around safety. How old are your daughters and are you comfortable sharing that compact a space with a tenant and your family?

Rather than look for a place in HV where you can rent rooms, can you look for a true duplex/ADU situation so you still get the rental income but with less of the shared space risk? You may pay a little more but you may find a more traditional rental is worth the higher price point.

Every time I drive down Hwy. 30 I think the same thing-no way would I want to live there-from the road noise and pollution to the superfund site down the road to the industrial all around-no thank you! 

Will send a PM here in a bit with some more info. 

It's just a matter of looking at the total picture and where you want to be...doesn't mean the new property you buy won't cash-flow enough to make up for the loss in the first one, but you certainly want to know that before getting into it!

Mathew