All Forum Posts by: William Sing

Hey Benjamin! 

A potential option is to do private money. If you have any properties already you can collateralize them for using the down payment. 

Another option is seller financing. You don't technically need a down payment for seller financing. I would start looking up properties that are not owned by larger portfolios to see if you can find any "mom and pop" landlords that are entering retirement age. This will take a lot more work, but will most likely leave you with the most flexible options. Finding the 20+ units places would also give you a much better lay of the land. 

Just some thoughts!

Hey

First off, congrats for being in a place where you have so many options! 

Do you want to be the most profitable in the short term or the long term? 

1) Investing in rentals will produce cashflow more short-term. If you are wanting to supplement your income with rental income more immediately then I think this would be the way to go. Usually, when you invest in more cashflow markets you are not getting as much appreciation and rent doesn't go up as much over the long haul. You will also have to manage from afar, which isn't a bad thing, but it will probably be a bit harder to make sure you have the right team to make sure your investments don't become money pits. 

2) If you invest in a personal residence it will most likely appreciate more in the long-term especially in the Seattle market area. Just like Portland, that is much more of an appreciation market than a cash-flow market. You can then use the equity gained to then invest more in cash-flowing properties. This is going to be a longer-term play but the price of buying a home in Seattle will most likely never go down that significantly given the economic drivers. 

3) Why not do small multifamily and you use as a primary residence? There are usually lower down payment programs where you are able to leverage these low rates. The rents from the other units would count towards your DTI ratio and can usually increase how much you can be pre-approved with.

I hope this gives you a bit more to chew on. DM me if you want to chat any further!

Nice job Jacob! Not sure where this is at, but I'd also make sure to do an oil tank locate as well. That can be a 10k project. They are common with older homes here in the Portland Metro area. 

Congrats Stephen on this deal! What do you think are the things you wish your agent had let you know more about during the process?

A couple of other filters might be how much equity someone has so you could find some potential seller financing deals. You can also see if any of the homes are not "owner-occupied" with out-of-state owner addresses. 

Hey Azmat! I would take a look at your rental agreement and if it is a "standard" form there is usually language or procedures for dealing with these situations. Usually, it has keywords like "severely" and "jointly" are good words to search for in the lease agreement. In most cases, you would need to sign a new lease with just the party staying there and they would need to re-apply to have the rental. I would state what the rental requirements are and give them the options in writing. You can also check with your local landlord association as well if there are any particular rules/regulations your state/area have on situations like this. 

Hey Carlan, 

1) This depends on what you are looking to do. If you are looking to refinance the property I would talk to the bank to see what the requirements are. Sometimes it is harder to do the refinance due to their lending restrictions if it is in an LLC. You can always move the deed to your LLC but just be aware of the Due on Sale Clause.

2) I'd talk to your insurance agent about the options. Making sure you pair the LLC and insurance to minimize risk but also maximize your coverage is a tricky thing and each state/location is different.

3) This can be a part of your agreement with seller, but if you are taking over the responsibility of the home and property managing it you'd most likely be liable. I'd chat with the insurance agent a bit more about what your policy covers. 

4) In the state of Oregon, we use an escrow/title company. The third-party helps out with keeping things a bit more civil and protects you from the seller just taking your EM. 

5) You can add this into your contract about what happens. States have specific way rights would transfer. I'd talk to an attorney about your state's typical practices. The sellers interests are usually passed down to the surviving beneficiaries. 

6) If you don't already have these contacts, I'd really recommend finding a trusted attorney and Insurance Agent to help you through this process to understand how to mitigate your risk. 

Hey Rakesh,

If you are looking to house hack, usually I find it best to start with smaller multi family. This usually reduces your liability and in Oregon the landlord tenant laws are more in you favor if you own less than 4 doors. If your wondering what is best, a question to you should be asking is what are you trying to achieve? Do you want cash flow? Limited self management? What conditions do you want to live in?

Once you ask those questions you can get a better idea of what investment vehicle or property types might best fit what you are looking for. I have know property managers in the Portland area as well if you do decide to have someone else take over the property management side of things.