All Forum Posts by: Steve Moody

@Aimee Knier Is your idea of the fair market value based on properties that are in similar condition? What is the market value of the place if you do the upgrade you speak of (carpet, doors, etc). If there are already Sec.8 tenants there must have been regular HUD inspections, you'll want to make sure that they've passed these inspections or that you at least know what it will take to get them to pass.

If it were me, I'd write up an estimate for all repairs and deduct that amount from the true market value. If your offer is still in a comfortable zone then good, otherwise ask for adjustments. 

Finally, the part that really matters, will it cash flow with the current Sec.8 rents? You should find out if the current tenants pay any portion of the rent, and ask for records of when those payments are made (are they on time every month, habitually late, months behind). I really don't know about the logistics of removing Sec.8 tenants as I'm just starting to research it, but there are quite a few people on BP that deal with it so they can chime in. 

@Steve B., thanks for the insight.

@Michell P. it sounds like you're banking on major appreciation continuing, but how long do you see that happening in PDX? 

I bought a condo in Southern CA in 2001 and sold it in early 2007 for almost double what I paid. We saw the same "doubling" of market values and buying frenzies back then too. Right now my old condo is almost worth what I sold it for 9 years ago because the bubble burst (it was underwater by about $200k for a few years). So you can see why I'm reluctant to buy into market appreciation as an investment. 

I do still think that rents are too low (and/or home values too high) in Portland metro, but is buying at (or close to) current market then waiting a few years for rents to catch up a good strategy here? 

AutoDesk has a free online version of AutoCAD called AutoCAD360. There's a bit of a learning curve, but it's pretty easy to pick up 

If they service your area and you only have a small amount of trash Bagster is an option. About $30 for the bag at Home Depot, and $150 - 170 for the trash company to pick up 

@Wayne Brooks That was what I was thinking. The size of the hole needed to bury that much trash would leave wither a substantial new hill or dirt on the property, or would need to be hauled away. If they're hauling away dirt, why go to all that trouble? I think you're probably right that they hauled away the trash, and cleared the area when they were done. 

I wonder if the neighbor made an offer to take the now contaminated house off of his hands for cheap? 

@Robert Laird, I'm interested 

@Michele Fischer I listened to that Podcast way back when it was new, and I think that's where my reluctance to look in Longview came from :-) 

@Tim Richardson Check out www.northwestreia.com for upcoming meetings. I've also heard that RareBird has some good meetings, but I haven't joined any www.myrarebird.com

@Tony Ngo @Bob Davis Thank you both for the info. I'm starting to look in that area, mainly looking to get into buy and hold small multi units.  I wouldn't mind picking your brains about the area some time.