All Forum Posts by: William Sing

Hey Tony! Thought I'd throw my hat into the ring. Here is some questions to be asking if you aren't already. 

What is your experience with being an Agent?
How do you do walk-throughs?
How do you run the numbers?

Where would/do you invest in this market? Why?
Do you work with out-of-state investors?
How do you save investors money?
How do you like to communicate? Frequency?
Who are your prefered vendors?

Feel free to message me if you'd like to dive more into it on how analyzing numbers and such and what to be looking for. 

Hey Larry, congrats on at least analyzing!

Usually I like to use rentometer.com to get a rough ballpark of what the rents will be. Usually if the property is in good shape I use the lower of the average/median to run numbers. From there I would start using zillow and other sources to see what a similar place and rent would be. Usually that is when you get under contract and have the inspection period. 

If you are trying to use the 1% rule or something similar to what you mentioned, there will probably be nothing on market in Portland that is close to that as a heads up. Portland is much more of an equity market and unless you are putting a lot more down, cashflow will be something that will happen once rents appreciate more. 

As for accounting for costs, usually I recommend people for these smaller units just have the tenant pay for utilities. Helps eliminate variable costs as well. Most of the time electricity, water & sewer, and garbage is going to be something the tenant can pay. 

You are also not putting anything for mortgage insurance? That along with the property insurance seem really low. Vacancy is closer to 4-6% in the Portland area. I agree that repairs are a little low along with capex. One thing to consider later on is property management as well once you get closer to the 8-10 units it typically makes more financial sense. 

If you need any help with the Portland Market let me know!

Hey Calvin, 

I think this may need a bit more context to better understand the whole house. If you are looking to sell, this probably will not be a huge dealbreaker for a lot of buyers depending on where you are at. Depending on the area and style of the home it may be better to do carpet on the stairs or using paint. Overall, the painting will most likely be cheaper but I'm not as much of a fan of it unless it goes with the aesthetic of the rest of the house. I'd talk to your agent a bit more to see if it is even worth doing so that way you don't spend a ton of money/time on something that won't provide much of a return. 

Hey Caroline! Interesting request. For the most part this would be similar to a long term rental. If it is for a retirement home type with medical assistance then you will need to jump through a couple hoops usually with the state/federal level in terms of paperwork. Your place may also need to be updated to comply with ADA standards which may or may not get expensive depending on the layout of everything. Do you have more info on what the proposal is or is anything in writing?

Hey @Travis Lee

It's awesome that you've decided to dive into real estate investing. Cash-on-cash return (COC) is indeed an important metric, but the expected COC can vary based on your location and the type of property you're eyeing.

In some metro areas, especially on the west coast, COC returns might be lower due to higher property prices. In such cases, you might want to consider Return on Equity (ROE) as well, which takes into account the appreciation of your property over time.

Generally, aiming to beat inflation is a good rule of thumb. So, on the lower end, a 4% COC might be acceptable, but for better deals, you'd want to start at 6-7%, especially in metro areas.

If you happen to come across a deal offering a whopping 15-20% COC, especially on your first deal and not through off-market channels, it's a good idea to double-check your numbers. While it sounds fantastic, such returns might raise some red flags. Also, if you're putting down a low initial investment, it could lead to a lower COC.

Remember, each market is unique, and factors like location, property type, and your financing strategy will impact your COC. I recommend talking to local investors and what their buy box would be or COC they'd want. Keep analyzing deals and fine-tuning your approach as you gain more experience!

Hey @Victor Carvajal, I totally understand your frustration. It's important to find an agent who's knowledgeable about VA loans and can effectively communicate their benefits to sellers and listing agents. VA loans are a fantastic option for veterans, and you're absolutely right that more agents should be well-versed in them but not all agents are created equal.

When it comes to making your offer more appealing, I usually am educating the listing agent and the seller about the advantages of VA loans and how they are not as bad as they used to be. Having a lender to back up these claims is also super helpful.

You're not asking too much to expect an agent who understands VA loans, especially given your service. If you need some connections just let me know. Are you looking at a single family or multifamily as well? Many agents are not as familiar with investment properties as well.

This semi-depends on where in oregon. City of Portland has some more stringent laws compared to the rest of the state. I'd take a look at the initial lease to see about any language around the deposit and what you are able to use. If they did leave anything behind, you will need to send them a specific form for that. Usually all of the accounting needs to be done within 30ish days I believe. Id reach out to  https://www.landlord-solutions.com/ to answer some questions (they are oregon specific). Also if you need any additional forms for Oregon here are my go to:
- https://store.oregonrentalhousing.com/

- https://www.rentalformscenter.com/state

 Companies that have 50 employees or more are required by the state to submit that they will be doing layoffs or terminating business. I believe every state has something similar to it. Usually it is called "WARN". You can see Oregon's program here - https://www.oregon.gov/highered/institutions-programs/workfo...

If you then google "WARN LIST [STATE]" in google it will usually come up as well, but this is how people see if there are major layoffs coming or not. Here is Oregon's list:https://ccwd.hecc.oregon.gov/Layoff/WARN

If you are hearing of potential cuts in your company and your company meets those standards, you can check the designated WARN website and see if you need to start a job hunt yourself. 

@Lynn Gadd I agree with @Jeremy H. If this ever goes to court for an eviction for whatever reason it would more reasonable. I hope it doesn't get to eviction, but if it does you can reach out to https://www.landlord-solutions.com/ . They take care of everything with the process if it gets to that point but recommend you look up the right forms and serve them if they don't start paying rent. For Oregon specific these are the usual go to's:
- https://store.oregonrentalhousing.com/

- https://www.rentalformscenter.com/state

My standard operating procedure is to just ask for the prorated amount along with the deposits within 48 hours of the lease being signed. This makes it easier for billing and setting up things for the long term.