All Forum Posts by: William Sing

I do! I actually worked with @Julee Felsman who was great. She helped me get into a duplex.

The square footage of the building is going to be much better. The cost of a one-story building vs a two-story building will be different even on the same lot. For costs in Portland, OR I have seen costs be between $225-250/sqft on the lower end to up to $350-375/sqft and they only do it by the size of the building sqft. The lots determine how big you can build for the most part. Hope that helps!

I think the contractor is just being a bit more transparent with everything pricing-wise. With investors, they are usually looking for a breakdown of everything, which is frankly not how most contractors work since they provide the overall price usually with no breakdown. Overhead costs are usually more built into the price but this situation isn't extremely uncommon. I know builders who charge 20-30% and that is on a much larger scale. This usually helps with pre-establish pricing if something pops up that is an issue. Either way, you are paying the same and it doesn't really matter how it is broken down. 

I personally prefer the models where it is the first investor who responds gets it since it evens out the playing field and having a bidding war where clients may feel upset might not be the best long-term relationship building. That is my two cents though!

The market is shifting a little bit here in Portland, OR but it depends on what area you are in and price point. A lot of places that have space (3bd/1.5ba) are still competititive and in the suburbs you need to have pretty strong terms still. Some places are getting less offers though!

Hey Evan! I'd take a look at this post https://www.biggerpockets.com/...

Julee has some great points 

One thing to note is that it is harder to get people to accept 203k loans in hot markets since you might be competing against flippers. 

Congrats on doing a flip! 

I think your strategy is sound. Just know that the mother-in-law suite might rent for less in general. This is something I have seen a lot in Portland since we have been building a lot more ADUs but they have been more for Airbnb's. 

I think that I'd run the numbers to see if it is worth it for you in terms of time, money, and energy. If you find things that are turn key they typically don't have as much of a return. Hope that helps!

Hey Jake!

I think that this can be highly dependent on your local market. Here are some broader points to consider and I'll take my area for example. 

- Demand - The five major areas to look at are House Prices, Number of Qualified Buyers, Housing Alternatives, Consumer Preference, and Consumer expectations. 

- Supply - Three major areas where you get supply is New Construction, REO/Distress Properties, and current home sellers.

You can skim through the video to get higher level points but this is how you can analyze your market a bit more. One of the things to note is that we have strong fundamentals in demand and supply. A lot of the 2008 recession was propped up by poor lending standards where they qualified anyone with a heartbeat. That is NOT the case right now. When people can't buy they rent and if the rental supply is gobbled up then you will have rent increases. Even with the rent control in Oregon, we can cap out at 7%+CPI (Consumer Price Index) and we still are seeing a lot of rent increases. The rent cap helps people who are here already but nothing for anyone who comes in. 

That is just my two cents but I'd start there and understand your area from there and look at historical trends. 

Hey Antonio! With multi-family, you can expand your search. I sometimes have to go 3-5 miles outside of where the subject property is to find comps. This is what appraisers will do to. Try to make sure they are in similar types of neighborhoods. Hope that helps!

Hey Chris! With the 203k loan you can wrap up the mortgage. 

Here is a post that you can go to that will give you a bit more of an idea - https://www.biggerpockets.com/...

I'd direct you to @Julee Felsman post where she says:

"Conventional = Fannie Mae HomeStyle. HomeReady is FannieMae program that can be combined with HomeReady and offers certain benefits for owner-occupied buyers who's qualifying income is equal to or less than 80% of Area Median Income (LOOK-UP TOOL HERE).

FHA = 203k.

They both allow you to wrap construction costs into the loan, but your only option will be a Fannie Mae HomeStyle (non-HomeReady) renovation loan on a single-family residence."

She has some good info on this post as well that might be helpful for you as well.