All Forum Posts by: Eric Bilderback

It is a gamble.  Your rents will not going make your payments if you have financing, so it will be cashflow negative.  However last year there was 13% appreciation in Bend and historically the high end inventory will appreciate more then the low end inventory over the long run.  It would not be an investment I would be interested in (or could afford), but over a 10 year period who knows?  It could make a guy a million bucks.

Have you considered renting out your home and buying a new one for yourself, maybe a duplex or fourplex etc?  That should immediately put you in a better family situation. I think that is your best bet depending on your family.

I don't allow anything that would be an additional cost to me.  ACH's are fine maybe it is because I live in a smaller town but people want to pay with a check which is great.  If I were out of town I would have them go to my bank and make a deposit into my account themselves.  Unless it was a complex then I would make someone in charge of collecting rent and give them a small break on the price.  That is what I used to do when I rented a place 10 years or so ago from my landlord.  I didn't find it to be a hassle.  

My rig is ugly no doubt.  I want desperately to be financially free and I do not have some material things like a nice or even decent car.  However I do believe many of these people are victims of a crappy education.  People have been trained to be consumers and the more you can buy material wise the happier you will be.  It is sad to me sometimes I feel like I am taking advantage of peoples ignorance.  Not to get to political here but I wish the schools and media would stop preaching about how bad cigarets are and help people discover the possibilities and opportunities there are for people who are willing to accept delayed gratification.  I won't hold my breath that this ever happens but my kids and the people in my small sphere of influence know unless they want me to get on my soap box about this they better keep quite on this subject!  "Forget hope and change lets make a plan for you to get into a place where you creating wealth and better life for you and yours."

My 2 cents are to raise the rents a hair.  Assuming market in your area at that property is 1000 I would tell them I would rent month to month at 995 per month or a year long lease at 975.  I have found that this makes the them feel like they are getting better value then not changing anything.  There was a post I read from a New Jersey guy about this and I implemented it myself.  I like giving good tenants discounts but generally your expenses will increase with inflation so you need to have at least a small hedge against it.

I am a CPA myself, Pure Unadalterated Hell!  As you may have guessed accounting is not for me.  I have seen you here before and know your story.  It is a great one.  I know of many people who want more.  Congrats on being one of the people who got it!  Did you get most of your connections from the contacts you made as a CPA?

15 plex.  I have a guy on site.  I want to buy something close by like a fourplex and have my guy manage that property as well.  I don't like giving free rent to manage only 15.  I think I could have him manage 24 for free rent.  So I want to buy a total of 10 more in the same town and have no additional management cost.  Or sell in a few years and get something bigger.   

it is discouraging the market in Central Oregon is for speculators not investors at least  not cashflow investors.  It is hard to just find homes in the 200k to 300k range and you will not cashflow on those homes with 25% down.  I tell people if they want a rental using OPM they are wasting their time in Bend and will need to search out of town.  Apartments are the same if not worse.  In the longrun this will be difficult to sustain but as Keynes (the economist) said "in the long run we are all dead."  For this reason I can't encourage people that are trying to create wealth for themselves to sit out.  If you only have to preserve wealth I would advise to pass on this market or at least be very conservative.  

Ian I will see you there.  Sorry you can't make Elijah.

Heck yah!  I will be there no doubt about it.