All Forum Posts by: Patrick James

@Andrew Lamb, thanks for your response. Nothing is holding me back; we already own the house and are performing the conversion. I'm just dealing with the county, and I'm curious if anyone else in my area has gone through the permitting process and what their tactics were to get it through. 

They are trying to lump co-living in with a congregate living facility, which sober living would fall under. However, congregate living involves many enhancements to the dwelling other than just a typical residential house. This is mainly because they want to put it into the commercial category. So, maybe we fall into the weird bucket.

Hey there, 

I'm looking for anyone who converted a house to a co-living setup in Oregon or even more specific, SW Portland in Washington County. Oregon lifted the ban on co-living/rent by the room in 2022, yet the county is completely unfamiliar with the concept. 

So, is there anyone on here with first hand experience in navigating the process?

Thanks in advance for your time.

@Ruchir Kaul Do you have Property Management setup yet? If not, check out Edwin Watson at Triple E Property Management. They are full service with reasonable rates. I currently have five doors with them, pm me if you have other questions.

Cheers

@Antoine Pippens I believe one of those "loopholes" is if you have to move further than 70 miles from your current residence for work. But I'm not an attorney or an accountant so it is just my opinionated experience from past clients. [Solicitation Removed by Moderators]

@Rachel Meeks Sounds like a perfect opportunity to house hack. Live there for however long, while your tenant next door covers your mortgage.  More than likely you are not going to see a lot of appreciation in those three years so closing costs and commissions may not net you much. In my opinion of course.

Patrick

@Jeff Marston welcome to BP and thank you for your service.

Interesting topic and a great thread to gain others' opinion on the subject. Pets are great when they are your own, in rentals they are the worst. Depending on the quality of the rental is how we determine pet or no pet. We've had good and bad experiences. In our area, good rental units can be hard to come by, so we advertise it as "no pets" really does not matter though. I'd say at least 70% of the leads will ask about pets.

I notice there were no other posts from Oregon. Non-refundable deposits are not allowed here, could be something to check on in your own states as it's a potential headache for a landlord if your tenant investigates just a little bit. Also, "non-refundable" is not a deposit, it is a fee.

Cheers,

@Jason C. I myself do not use the 70% rule. When we go to look for a house to live-in BRRRR, we look in an area with good rental numbers, then find a less than desirable house in a great neighborhood. Depending on what your qualifications are for a loan you'll have FHA or Conv. We like to go the conventional route, with lowest down payment possible to free up cash for improvements. Assuming your improvements boost the homes value then do a cash-out refi and pay yourself back and help fund the next project. Now, obviously your rent has to cover your new mortgage plus all the other operating costs to meet your required net income your looking for. This is why we look in areas for good rental numbers. If you plan to sell then you would need to reside for at least 2 years to stay away from capital gains taxes, with exceptions of course but that is for your professionals to guide you on. In addition, you'd have commissions to payout on the sale and closing costs again.

I hope this helps a bit and it may be a little high level but the basics are there.

Cheers,

@Adam Widder I think you are trying to combine too many tactics here. If you are not going to live in it for at least two years before selling, in most circumstances you are going to get hit with capital gains taxes. You might as well just buy an investment and flip it. Second, if you finance the rehab costs into it then the lenders appraisal is going to be pretty darn close to the final number. So when you go to sell, unless your market skyrockets, you are not going to make much if any after only making a handful of payments.

In my opinion the better option is to put the 3.5% down (FHA), put your blood, sweat, tears and money into it. When done with the rehab, refinance it and drop the PMI. Live in it for two years, then sell it or rent it out and run with the passive income. Then repeat all over again.

@Kiki Helland 1.5hr test? I myself would not trust those results, but that is just my opinion of course. I was not aware there were technicians out there performing tests less than 48 hours. Fun Fact: WHO (World Health Organization) states at 2.6 pCi/L you should start mitigation.

I wish you the best of luck on your transaction.