All Forum Posts by: Mathew Wray

Morning Jayne, I think you might've accidentally hit "post" without including any info about your situation! 

Let us know a little about you and what you're trying to accomplish and I'm sure you'll get some reasonable, helpful advice! 

Mathew

Hey Seth, welcome to BP and Portland Real Estate! 

As I hope you'll see when you search for Portland on BP, there's an active community of folks and a number of resources that you can use to help gain knowledge and grow your skill sets. 

Best of luck in the new year!

Mathew

@Athan Seyler 

You're on the right track with the advice given here by the lenders...you'll find there are a number of good lenders here in Portland who will help you through the process AND work with you as you navigate the statewide and city wide landlord tenant laws and where they conflict with mortgage rules and regulations. It's a process that is complicated, but doable with the right help by your side. 

While not impossible, doing an 203K loan in our current climate is challenging for a multitude of reasons...but it's a nice option to consider for sure! 

Best of luck on your journey! 

Mathew

@Chase Wippert

Sorry you're going through an eviction, especially this time of year when your mind is likely focused on (or wanting to be focused on) the holidays. Every state has different laws on the processes so I'd be cautious on general statements. Knowing some of the penalties for messing up how you deliver notice and follow-up (delays, damages, thrown out cases, starting over, etc.) as well as how easy it is for a tenant to find a Tenant's Right's attorney, I'd 100% check with an experienced attorney here in town prior to taking another step. They'll be able to guide you on your options and make sure you fulfill your obligations according to the letter of the law. 

Yes, it's going to cost you a few extra bucks to consult with an attorney, but I think that's far more appealing than having to pay one even more money to help clean up a mess or represent you against a tenant's attorney. You've already said you're worried that cash for keys might not work, so do yourself a favor and get the pro's advice now. 

Send me a message or text if you need a referral to a great attorney we and our clients use. 

Either way, best of luck!

Mathew

A 1/1 is definitely not the highest and best use for that lot...like Jeff said, I'd hang on to it until you can take advantage of the land either by splitting, tearing and building, or adding to it! I personally like the South Tabor area and think you've got a pretty sweet thing just sitting there waiting for the right opportunity. 

Morning Jodi, 

I tend to agree with the other posters...it seems like your property is potentially under-rented. I'm guessing based on that value that you've got a 2 bedroom, 1 bath detached home. Is that right? For the most part, including the majority of the suburbs, $1,175 seems low to me. Whereabouts is the house? 

1st step for me would be to check with your property managers and see when was the last time they did a rent comparison? Double check that with your own research. After that, take into account the new LL/Tenant laws in Oregon to see how long it'll take to get rents up to market, or if it's even worth it. Once you've got that info you can plug it in to your spreadsheets and see what happens to your cashflow from there...maybe that then becomes worth it to keep. 

At the same time, I'd take a look around-what can you get for the equity in your own backyard? Do you live in another expensive market like Portland, or do you have access to better cash-flow at home? I wouldn't want to trade the house without knowing the pros and cons of where you're putting the money! 

Hope that helps give you an idea of next steps...

Mathew

With the new zoning changes statewide working their way through the system along with the overlay and interpretation from local municipalities, look for even more hidden opportunities to build/expand/add ADUs in the future. It's not a gimme that every deal with have a plus one to it, but that's where we're seeing clients looking right now. They find a deal that meets their criteria, then they look to see if there is a reasonable chance of making the deal even better once the new zoning regulations are solidified. 

One piece of caution about a proposed (but I believe a majority of city council support it) change specific to the city of Portland is around deconstruction. Currently, any home built before 1916 and being torn down needs to be torn down and salvaged by hand. Under the new proposal, that'll be bumped up to 1940. Just something to be aware of if part of your plan involves buying and holding, then replacing in the future. 

Mathew

Two well known in the area are Western Construction Systems out of Salem but they travel to Portland no problem and will give free-bids. The other we’ve had good luck with is M. Leon Construction. 

Jay is right-this is an area where you don’t want to mess around! 

I’d 100% leave it alone. There just isn’t a ton of meat on that bone since you’re considering house hacking anyway. Have you looked into low/zero down/payment assistance loans that’ll get you into a property with very little out of pocket? Your payment will be higher because you’re borrowing up to 101% of the purchase price, but it gets you to your goal and let’s you get started. 

Also, assuming you like RE investing and want to get another home after your year loan commitment is up, you can likely use the existing 35K investment as a reserve to help qualify for property #2, which you can’t if you cash it out. 

Best of luck and let us know what help you need!

Mathew

Ethan, 

You're likely to find good results, but I'd be doubly sure and talk with the city like Nathan recommended. We have clients who bought a place with an extra long driveway, added in an electrical connection (I believe sewer as well) and rented out a spot in the driveway to a guy with a tiny home for him to park it there. The city was fine with it as long as there was enough parking for all residents. 

Worth more research, but you're on the right track. Let me know if you want to talk to an experienced lender as well...you'll want to make sure you don't run afoul of FHA rules on occupancy. Worst case scenario, you buy and live in the house, rent out the tiny home for a year, then once your occupancy requirement is met you jump over to the tiny home and rent out the house. And that's not a bad "worst case" scenario.

Mathew