All Forum Posts by: Todd Powell

@Nolan M. congrats! Take one bite out of the apple at a time! I love doing deals that make sense and is a win win! And wow $18k for a house ? A fixer 2 bed here will run $120,000 or so. The $18k would be the cost of a Ford Focus, so nice work and tremendous work! Work hard and find more deals! 

@Jay Hinrichs unfortunately there was someone just as uninformed as I and he bid me up $10,000 and was severely bummed he didn’t get that property. Boy, did I save him some headaches !

@Jay Hinrichs good to know! Yes it was a state tax home deferral deal.  Titling actually missed that the state of Oregon attorneys actually put themselves in first postion or was not part of the auction. It was painful dealing with people that said they understood this process and in the end, me trying to figure out all the court steps. Tough lesson. I am ZERO for one on auction sales! 

My understanding is that tax liens, namely IRS, always come first. I bought a courthouse Sheriff sale two years ago and the State of Oregon had their ten year home tax deferral protected at this auction at 5% accusing interest. It was 180 redemption period for the other junior liens to redeem but taxes were protected. The investor and tile company i dealt with on this BOTH missed these taxes, and I took a $26,000 haircut on this deal! This was after we had bought the redemption rights from the firmer owner! Be aware of Sheriff courthouse sales and be aware of taxes as I hear they are in first position.  But, @Jay Hinrichs might have accurate information on this IRS situation as he hasn’t experience, but every title person I have ever talked to has told me that taxes NEVER go away like junior liens if they do not bid their position and redeem. Curious what happens here ? Best of luck!

@Robert Raffalo typically the 1% rule has been hard to achieve doe quite some time on the West coast.  I know property values have always been lower in Florida. I would not get hung up as much on that general rule but if you can get close, that’s awesome! I have done it many times but it takes harder work to find those deals. The deals I look for when I want to hold are buying with instant equity as well as achieving cash flow. That’s a win win if you can do this. It’s all about the numbers and the 1% rule was a old school guideline. Best of luck.  

@Cody Sims I am waiting for one of your deals. Did you change cell phone number ? Been trying to reach you. 

@Nathan Gesner you have a lot of really good insight on your posts! I agree with you as I am typically 90% $1000 or under pricing, and the other 20% is $1050-1200. It’s the sweet spot price range for sure and almost every buy and hold we have is 4, 5 or 8 plex units. College campus close on a few and that’s always makes it easy with demand !

@Jay Hinrichs yes, we felt some pushback on our rents in Forest Grove and my son @Jason Powell said 45 days ago he felt the market changing a bit. Over 200 brand new units were recently built in the same area and they not only have a work out facility, but they dropped their rates just trying to fill units. 

You are also right, I love my college rentals in Corvallis and Monmouth as they are 100% full every year based on demand and one year leases! Love strong college markets 

@Josh Bast make sure you have sufficient funds for emergencies, but I would save some cash for the next good deal. I have used smart leverage with the right deals to make a lot of money. Just my thoughts.

@Scott Morongell thank you !