All Forum Posts by: Mike Sattem

Cameron, 

I've had good luck with Jordan Cornelius (541-910-6626) and Justin Ashlock ((541) 786-6794) in La Grande. I believe these guys service the Baker area as well.

All:

I wanted to share my recent experience with a residential eviction in Oregon with timelines, as there was nothing Oregon specific I could find in the forums. I will add the that first item is specific to the fact that this property was purchased at trustee's sale; meaning that I inherited a tenant at sufferance, with whom I had no previous rental relationship. The "tenant" was the previous owner.

1. After the Trustee Sale, a notice was posted on the front and back door of the property notifying the current occupants that the home in which they were living had been sold, and providing them with instructions on when they would have to be out. Under Oregon Law they are afforded 10 days possession of the property after the sale.

2. We had made contact with the tenant and offered $1000 cash for keys, but this offer was declined.  On the 11th day after the sale, an eviction packet was filed with the local court. 

3. Three days after filling the eviction we received our Court date for the first appearance. The court date was 9 days after the initial filing was completed.

4. At the initial court appearance, the judge moved our case to back of the docket after initialing calling us forward, as the tenant was not present. When our case was called again, the tenant had finally arrived. We each briefed our side of the eviction case, with the tenant claiming he was unable to move out due to a bad knee. At this point the judge asked the tenant to file an "answer" (a written document detailing why you would like a trial) with the court and proceed to trail.

5. We received a trial date 14 days after the initial hearing. The tenant did not report to the trial, and the judge ruled in favor of us, the landlords. The judge gave the tenant one week to be out of the property.

6. One week later, when the tenant had not moved out, we had to request a "notice of restitution" from the court. This document instructs the sheriff to notify the tenant that if they have not moved out within four days, they will be physically removed the property. This document is personally served on the tenant by the Sheriff.

7. On the fifth day, if the tenant is not out, you must request a "writ of execution" from the court, instructing the sheriff to remove the tenant. The sheriff will travel to the property and physically remove them from the property, allowing you to change the locks. You will then have to coordinate with all parties for when the tenant will come and collect their stuff. 

8. In total, this tenant had illegal possession of the property for 35 days, plus a few extra days on the back end when they were coming back to collect their stuff, plus the 10 days of legal possession after the trustee's sale. This scenario is pretty middle of the road. Some folks will move out as soon as the eviction notice gets posted by the sheriff. Others will fight you legally, delaying every action until the last second, and working with tenant groups to seek extensions and make you look like the bad guy.

In short, make sure your paperwork is 100% correct, and gets filed immediately. Hope this was helpful.

@Account Closed, I would stay away from Eastern Oregon. Jobs, especially higher income earning ones, are much harder to come by except in a few markets, like Bend. Also, most of these smaller communities are swamped with investors currently, so many of the great deals like older landlords, and out of town owners have already been snapped up.

@Jonathan Holmes,

The issue is not the electric meter, only that if the city found out that we rented out the apartment, and followed through on the threat to disconnect the power, my entire building is now out of hot water. The city plumbing and electrical inspectors have signed off on all the work in this unit, and only on the final walkthrough did the head inspector state that his records indicated the building was a five unit, not six. He states that because we didn't request a permit for adding the unit, (the building was set up as 6 units when we bought it) he will require us to add sprinklers to the building to allow the unit to be deemed habitable. No mention of any of this throughout the entire rehab process.

I recently purchased a 6 unit apartment building and have completely gutted and remodeled the entire building with all the proper permits and inspections. Upon final inspection from the city, they stated that, per their records, the basement was only one apartment, not two as it is now set up as. Each unit has its own entrance, and otherwise meets all new codes for egress, electric, plumbing, etc. Long story short after going back and forth, the building inspector has stated that if we use this 6th apartment, as an apartment, he will have the power company remove the power meter, which is a problem as this unit also powers the hot water for the building.  Unsure as to how I should proceed. I have no desire to go the lawsuit route, as we live in an extremely small town, and he is the only building inspector; I probably shouldn't make him mad :)

My final building permit is signed off on, so the city has no reason to inspect or gain entry to this building.

Any thoughts would be appreciated.

@Bola A.,

I assume you are talking SFR. If that is the case, you can plan on a 1% Origination fee, an appraisal fee (anywhere from $500-800 in my market), a year of pre-paids (taxes and insurance), and whatever fees you title company will charge for a title insurance policy/doc prep ($500-1,000 in my area). Also, most lenders are going to have fees/rates that are very comparable, as they are all basing their pricing on whatever that days rates are on the secondary market, so you should only need to ask the lenders what origination fees they charge, as all of the other fees will essentially be the same regardless of what lender you use.

@Kameron Patterson, 

You can establish the partnership however you like, however I would definitely plan to take each deal independently, and be sure that is established up front. Reason being, if you BRRR the first property, and are able to purchase the second without the help of a partner, you may choose to do that. You may also decide that partnerships aren't for you, and it's no fun to be tied to a partner you don't like.

@David Silva,

I took over a 6 unit building with the clause that the seller had to evict every unit, as all but two were non-payers, and the other two had trashed their units. This also allowed me the opportunity to also conduct a complete rehab on the property, as the units were vacant when I took possession.

Hello @Courtland Bourgeois,

As a licensed principal real estate broker I will tell you that 99% of homes, especially if they have been recently renovated, can be sold FSBO without an issue. However, be aware that more likely than not you will still end up paying some type of commission to the buyers agent, as most buyers would prefer to use a licensed Realtor to write up the sales contract. Also, that 1% of homes that cause issues, could be a huge problem. If you are very familiar with real estate you probably won't have any issues, but if you are unsure, I would definitely use an agent for your first several sales to learn the ropes.

Most Auction.com properties will cycle through the site multiple times in order to generate interest, unless the bid gets pretty close to real market value for the property. Typically after the 5th or 6th listing they will start to get more realistic about getting the property sold. Once the property is under contract, stay with the timeline or you will end up paying fines, which you must agree to as part of their sales contract.