All Forum Posts by: Tyler Combs

I actively brrr multifam in PDX. I think multifamily is actually easier than SFR, because repositioning the rents has an exponentially larger effect on immediately bumping your equity position and allowing you to get your money back out quickly.

I look for properties that have opportunities to add value both short term and long term.  

• Short term = depressed rents, deferred maintenance, vacancies and violations.  
• Long term = expandability, upcoming zoning changes, additional density opportunities, or neighborhood appreciation potential. 

I've found most of them through working with sellers that own multiple properties, and being the most easy and fair option for them to keep coming back to as they liquidate.

Initial contact with these sellers is usually made through direct mail or word of mouth.  Seller financing and private equity partners have also helped this strategy work. Getting all the capital improvements done before it is ready to refi can be pretty expensive!  

If there are any other specific questions you have about employing this strategy in Portland, let me know!

@Jay Hinrichs - Wow, you either have really bad luck or someone at the state has it out for you!  The way we avoid having to get multiple licenses in multiple LLCs is having one corporation that owns all our active projects, and then sells them or transfers them after the work is complete.  We've also tried hiring an eligible GC and starting our own in house construction company, but that ended up being more trouble than it was worth. :)

Hi @Nels Norquist, it's tough to figure this one out because of all the conflicting information you hear about this and the "3 flips or less rule".  To make your own determination, the Oregon state page with links to both of the ORS statutes is here: https://www.oregon.gov/CCB/licensing/Pages/whoneed...

My interpretation is that if you buy a house and make improvements with the intent to sell, then you need a Residential Developer's License, even if you are hiring a GC.  In ORS 701, it defines a Developer as follows: 

The key here is "the intent sell".  If you're flipping a property, you are directing a contractor to make improvements in the property with the intent to sell.  It doesn't matter if you're the homeowner and you do less than three a year, you controlling the construction process for a product that will be sold to a new buyer, and the state wants you to have a bond and insurance to protect that new buyer if you screw it up.  A developers license doesn't require any testing or experience like a GC license does, just proof of your bond and insurance.

Best of luck!

Chris and Mathew are both spot on.  I thought I'd take a stab at answering your questions.

1) Yes, there are better deals available if you can hunt something done off-market. It takes a lot more work, but is better than bidding against the competition on listed properties.  Sounds like you already know the most effective ways of digging up those off-market deals. 

2) Everyone has their own ROI goals and metrics. As a portland investor, my goals are 20% cash on cash return for flips and minimum 7% annual ROI for holds.

3) It is definitely easier to get a short-term cash infusion from flipping, but there is still plenty of multi-family  that cash flows out here!

I've used Shawn Morgan to set up countless real estate LLCs.  He's a real estate investor himself and works with a lot of local investors. DM me for his info or just google him!

Hi Nicole, have you thought of using a fixed fee accounting service that uses automation and their own workforce to take the daily tasks off your plate?  Having the whole thing vertically integrated is worth a lot... I'd recommend checking out these two in the tigard/tualatin area:

Scott A Belt |President::Impact Accounting and CFO Services :: www.impactcfos.com 

Kyle Pearson, Collective - ilovecollective.com

@Steve Dunford I'll try to address your Question #3: What to say to seller's when they call you off your mailer.  I created a list of essential questions a while ago that I think might be helpful.  Don't try to ask all of these in one call, but weave them into your initial discussions as you try to build rapport. Here's the link to the pdf: List of Essential Questions

@Tony Ngo I used Luke Brean @ BreanLaw Trademark Law Firm in Portland, Oregon - their website is http://www.legally.co - they are very efficient and knowledgeable, and they keep the cost down by streamlining their process through their online application system.  Hope that helps!

 @Andrew Bitans, There a couple local PDX real estate brokerages that cater to investors. Latitude Realty is a great boutique brokerage that focuses on that niche, and Encompass Realty is one to check out especially if you are interested in buying properties at auction.

 Your next step is to talk to a mortgage broker and find out how much you can borrow and at what rate, then you can do some math and start looking at investments that will earn you that spread between cost of money and the new investment.