All Forum Posts by: Mike Nuss

@Brandy Scott this is common in Portland. There are a handful of investment companies in town actively bidding at the auction. They protect their investment by purchasing redemption rights prior to the auction. This also gives them leverage against other buyers looking to bid on the same property. I'm happy to answer more questions if you have any. Feel free to call, email or PM. 

@Account Closed

 Give Toija Beutler of Beutler Exchange a call. She knows everything there is possible to know about a 1031 exchange. She did a presentation for one of our RareBird guest speaker nights and it was super informational. She has completed over 17,000 exchanges so she has just a little bit of experience. 

http://www.beutlerexchangegroup.com/contact-us/

Looking forward to seeing you at one of our upcoming meetings. The April 6th meeting should be pretty darn good. Hope to see you there. 

Happy Investing!!!

@Steve B.

 You read it right. $1,100 in rent at time of close. The other unit was actually vacant, but will easily be rented at $1,100 in this market (probably $1,200 - $1,300). The zoning was actually commercial. Not all buyers will see the benefit of commercial zoning, but this one did. The duplex was on SE 9th, literally three minutes from downtown. The demand in inner SE Portland is strong.   

@Wesley Adams

Your 550K budget will work. Finding a 1% ruler will be very tough. Some recent numbers we have dealt with to give you an example.....

Eliot 4 plex- paid 800K, 15K in closing costs, 10K in renovations. Rent will be up to $7,100 in July when the last tenant lease expires and brought to market rent. 800K was a screaming deal in my opinion (off market deal direct from seller) as it appraised at 800K with an estimated market rent of $5,200 from the appraiser. Those appraiser numbers are in line with the market. 

Irvington - paid 425K, 150K+ in renovation (in process), market rents will be in the mid $4,000's. 

Hawthorne - paid 430K, 15Kish in renovation, 4K in closing costs, new tenants and market rents of $3,500

We just sold a duplex in Brooklyn. Paid 295K, put 15K in renovations, got market rents up to $2,200 and sold for $400,000. 

I'm in a rush, but wanted to post some recent market numbers from a local active plex buyer. I can clarify some numbers later if you have any questions. 

Wow. Thanks @JR Hinds @Jeff Wallenius @Brittany Irwin , @Jay Hinrichs   and @Randy Johnston. We really appreciate the shout out. Tyler and I take this seriously and I'm glad our efforts are appreciated. Very much looking forward to what Jay

 has to talk about. @Rohan Innis I suggest checking us out. Getting people out to "meet ups" in Portland is a lot of work. 

@Jay Hinrichs where the heck did you buy that? Sweethome?

I know of a recent sale with an ADU in Beaumont.....3038 NE 44th Ave. Recent market sales data to help.

As for rent of the ADU, don't look at SFR in that neighborhood for ADU comps. Look for ADUs for rent comps. You'll find them if you look hard enough.....Unless you're going to live in the ADU and rent the house.

Like @Isaac Frost mentioned, Accessory Short Term Rental (look for ASTR @ portlandonline.com) are becoming common practice for ADU.

Based on the "150-200K you could get for a sfr". No way that property is anywhere close to beaumont wilshire. My personal opinion is I would never consider a 150K-200K SFR somewhere else in Portland versus an ADU in my back yard with a Wilshire/Beaumont location. Heck, you can't get a 5,000 sq. ft. lot in Beaumont-Wilshire for that. The last skinny lot on 35th went for 125K off market and it is north of Prescott.

Are you south of Prescott in the Grant school district? Beverly Cleary elementary or north of Prescott with Vernon and Jefferson. That location difference matters big time in Wilshire. 

@James G. Location matters greatly. ADUs can be a huge success (think Mississippi, Hawthorne, Buckman, etc...) or they can be a huge flop (think Lents, east of I-205, etc...). They're tough to value due to lack of "market evidence", but from an income approach stand point they can create substantial value. It really comes down to location. Mind stating what area?

Hi @Michell P. for the RareBird shout out. Michell, you should come check out our meeting this upcoming Monday in Multnomah Village at the Lucky Lab Pub. Bring some Blue Star Donuts if you can :). Make sure you say hi and introduce yourself. 

Testimonial for Dennis....

@Dennis Adams recently provided exceptional service in removing a ton of personal property from a historic duplex we bought. The tenant of over 40 years did major downsizing leading to 2,500 sq. ft. of clutter. Not only did he get the job done in a timely manner with excellent communication. Dennis completed the project at a very fair price, disposed of as little "stuff" as possible and gave us a clear conscious knowing that not everything got sent to the dump. I highly recommend our local investors use his service in the future. I had a pleasant experience and am looking forward to using him on our next project. 

Thanks Dennis!!!