All Forum Posts by: Eric Bilderback

The bubble is being created by the lack of any kind of investment that gives a decent return.  If and when interest rates go up there will become other kinds of investments for people who don't want to own real estate.  For people who need to get a return on their money how else are they going to get it?  We will just have to see if the Fed is able to raise rates.  I am no economist but I think we are pretty much in a stagnate economy.  If the Fed does nothing we have a puny amount of growth but if we take our medicine and raise rates it will create deflation and another recession possibly even a depression.  The economy is a house of cards raising the interest rates will bring all of our past and current sins in to the open and there will be a reckoning of biblical proportions.  Think Samuel Jackson Pulp Fiction "and lord will strike down with great vengeance and furious anger."  Yah I vote we just sleep in the bed we have created a stagnate economy could be worse peoples!

I like the go big or go home.  But getting back to multiple units.  Yes it is more work but if you are serious about being a landlord and screening tenets.  I think multiple is the way to go.  I personally think   less then 20% is a little risky for an investment property unless it is just a smoking deal and I don't think you can put these numbers in that category.  But I want to reiterate being a landlord is not rocket science you just have to be serious.

Joe,

Here is what I wished I would have done when I was in a similar situation.  Get a realtors license and by your own place.  If you can afford it buy a duplex.  If you can afford a 2 bedroom rent out the other room.  I never got a real estate license until recently.  My last personal deal was 750k and I found the deal myself but the realtor selling it would not take a lessor percentage.  So I got a real estate agent.  That commission would have been the down payment on a small house for nothing I had not already done anyway.  If you buy a 200k home and get 75% of the 3% buyers commission that is 4500 bucks.  Now you can go to one of those restaurants you seem to love so much.  When you do go out to celebrate your awesome deal and your bright future, get yourself a margarita and think "man I am glad that guy from bigger pockets gave this sweet advice."

There was a post on here about 6 months or so ago.  A couple of Texas guys were saying that Fannie has a formula on what they will accept.  You should try and find that thread.  I forget what the formula was but it went something like after such and such amount of time they will take X% less then the asking price.  Good stuff and at least it sounded like these guys were killing it. 

I have this exact situation.  The former landlord let her get away with it.  And I have to.  I have spoke with her in person about it.  I did like her and I know the other tenets like her.  She has tried to catch up but it is difficult if not impossible for her.  I have gone against my own philosophy and made an exception for her.  She pays by the the 20th each month or there is a late fee (I have not charged her a late fee yet).  She talks with the manager of the complex monthly, yada yada yada.  I made a judgement gut call, which I never feel is smart in this business.  So far so good hopefully it won't bite me in the butt.  A guys got to sleep at night, and I know people made exceptions for me when my life wasn't going real smoothly.  

Best of luck  

I wouldn't mess this guy.  If you have a shady place one of those 2% rule places you probably have to. That is why you are making all that money.  But a typical place where I live no way.  I have seen so many tenets that justify to themselves why the world is against them and nothing is there fault.  If someone could just cut them some slack their whole life would be different.  Unfortunately this is not generally the case.  As my dad always reminded me "no good deed goes unpunished."

Bryan,

Whats up a fellow Oregon boy!  Bend has really blown up.  It is a lot like what people describing California as.  A good deal would be a 6 cap.  I have seen some good deals for cashflow a little outside of Bend.  I don't know how much research you had done but the are going to expand Oregon State Univ. to the Westside of Bend.  That is going to make property values go even more buzzerk.  My 2 cents would be to go ahead and take the lower cap rate in exchange for owning on the westside.  It should pay out big time.  This of coarse is if you are going to buy in Bend.

Sue,

I am a busy guy don't have time to get into every little thing.  I knew her lease was different paid by the govt.  but I let the manager handle that.  I don't know if I could evict for an OD (and atill don't) that was the question I asked.  Thanks for your posts trying to make me look stupid.  Next time just answer the question and move on.  I know your smarter then everyone else here but was simply asking for some information.   Good grief!

Sue,

I don't know a damn thing about section 8 period!  I didn't grow up on it and have worked my fingers to the bone to make sure my family never touched it.  So please if that is your angle don't go there.  That is my judgment admittedly I do judge and I feel I have earned that right.

As far as the lease is concerned I live in a small town, her dad is a cop, and the neighborhood authority pays the rent.  Is that section 8 I don't know?  I looked at all the leases make sure the were paying and went through every apartment myself.  She came in while the place was under contract.  I got a smoking deal on it and would have dealt with this one junkie in order to purchase this entire property regardless of how pathetic her situations was.  

Let me try a little consideration back your way.  Doing durgs is illegal,  possessing drugs is illegal, so I guess she broke the law right there.  I can't boot her out for being a creep and being a loser that doesn't take care of her kids unfortunately.  I am not an idiot I know I cannot kick some one out for being weird aka drink mountain dew and playing video games all day.  But being a scumbag creep makes me look for reasons to give you the boot.  But thanks for clarifying that I cannot boot some out for being "weird."

You hit a nerve but I do pray for this girl and I absolutely want her kids to be safe.  I want what is best for everyone but my responsibility is to my family to provide and to my good tenets who pay to have a comfortable home.

Yes I agree, rent will go up.  But you should buy on the westside of Bend.  Specifically where the college kids are going to be.  I spoke with a big time Bend real estate investor 2 weeks ago.  He told me the studies his firm showed that prices would double where the college is going.  I think it is entirely possible.  My thinking/advice for people going into Bend that are not investing for cashflow is don't hedge your bet and invest on the Eastside.  Double down rents will almost certainly increase and prices will appreciate big time around the new college!  I also think Redmond is excellent more cashflow and maybe even more appreciation.  My little town of Sisters has historically been more expensive the Bend but since there have been so many out of state investors in Bend, Bend has been more expensive over the last three years.  That tells me Sisters is going up as well.  

For someone who is speculating on an area and not investing for cashflow the westside of Bend is the best place I am aware of.

Please keep me updated would love to see what you end up doing or better yet if you come out this way let me know we can get one of our overpriced yet delicious Oregon beers!