All Forum Posts by: Brandon W.

Really appreciate the input and feedback. New at posting on BP and was a little anxious throwing stuff out there, but nice to see things were positive and very helpful!

@Scott Radetich I like option 3! That is my thinking as I see the Portland market continuing to skyrocket. I did take the ADU class with Kol Peterson, a year or so back and found it very informative and helpful. The only problem I am seeing with waiting on the ADU is that the SDC fee waivers expire on July 31, 2016 and I have heard from a few people that they are leaning towards not renewing them. Do not know for sure though.

@Jay Hinrichs Never even considered this. Why BP is so helpful. Thank you.

@Account Closed I am in NE Portland, 88th/Prescott, walking distance to The Grotto. Not the best location, but hasn't scared me away. I am looking for cash flow and to not have my wife working soon. We are a two income family with kiddo number two on the way and not sure how this will impact everything. 

I am a little bit hemmed in on size for the ADU, as we are using an existing structure (garage), but definitely something we've explored. I'll circle back and run everything again. Definitely believe cash flow would be better with a 2/1, but space, even building up, is limited. I have not thought about the lofted sleeping area in a while, I'll run that by our contractor.

Appreciate the wisdom!

@Ritchie Metzler I would love that too! It might be under $200K in Portland is nearly impossible for a complete rehab.

@Cameron Rouse Definitely far from Portland! I'm talking with the folks at Mid South Home Buyers in Memphis, TN. Been on a wait list, and my spot is coming up soon, I am told. 

@Charles Moore Looking at $1,737 for option 1 and $1,323 for option 2

I am really not wanting to do the upkeep on Airbnb, but most similar places/locations range in the $75-85 a night. I have not had great answers on appreciation, but seem to be something to adding 60-70K, based on a 65K build. I'm in NE, but further out. 88th/Prescott.

Hello BP Community,

I have a scenario I wanted to run by you. The general subject has been covered quite a bit here, but I had some specifics and specific numbers I wanted to share. I am of course looking for overall feedback, but I also am looking for what questions or information I am not including. I have owned one rental unit in the past, but this is relatively new to me.

I am in Portland, Oregon and have been planning on building an Accessory Dwelling Unit (ADU) on our current primary property for the past 6 months or so. Ended up getting plans draws and submitted to the city and then ran into some complications with setbacks. Frustrating, but also made me circle back to a turnkey option we have been looking at.

Here are the comparisons and please feel free to share feedback liberally.

Option 1: Build detached 1/1, 370 sq. ft. ADU/Backyard Cottage

$65,000 total cost

Rent for $750-900 a month, and utilities would be included as they are not separately metered.

Property taxes are hotly contested at this point, as our county has been drastically increasing them once building has completed. I am guesstimating my taxes would increase from $2,500 to $4,500.

I would then refinance all into my current mortgage, ending with a $260,000 new loan balance.

Cash flow of about $400 (if rented at $850), after factoring increases in property taxes, HOIs and utilities.

Option 2. Purchase 3/1.5 or 3/2 Turnkey Property

Total Cost: 60-85K

20% down and with financing looking at out of pocket cash of 17-21K.

Cash flow of about $250-325, after mortgage, taxes, HOI and mgmt.

Would then refinance primary and pull back the out of pocket cash I used to finance, resulting in a new loan of $215,000. I need to refinance for additional reasons, but would like to do it all at the same time.

Appreciate your feedback!

Brandon

I'll be there. Looking forward to my first BP meet!