All Forum Posts by: Zach Davis

I would assume the 6 months to decide would be in the case of an "effective eviction," raising rents 10%+ or the like. Meaning, you raise rents and 6 months later they can decide to move because of it.

I would also assume that when a tenat decides to move the tenant's notice to vacate would make it impossible for them to change their mind and stay. There will always be the ones that take the money and don't move, forcing a with cause. Good luck to any landlord trying to get that money back...

The media has predicted 10 of the last 3 recessions...

That being said, of course there is a correction coming. When? Who knows, could be 2 days or 10 years. Its a cycle, its going to happen.

The reality here is that Kiyosaki is now a brand. Brands need eyeballs on them and people to believe in them to succeed. If he predicts a crash and there isn't one everyone will more or less forget about it. If he predicts there will be a crash and there is one his marketing team will run ads and he will go on talk shows until everyone knows about it just like he did last time. The people that are scared of the new climate will turn to the "only guy" smart enough to know it was coming and his brand will grow.

I have yet to find a financial istitution that will do a loan woth less that 25% down on any non-owner occupied investment property. My understanding is that this is a federal thing.

Just used quicken, experience ranged from bad to worse. They asked for the same documents that have nothing to do with my properties or refi multiple times, screwed up the appraisal order, are incapable of reading file names, and generally wasted my time. Might be smoother with another team or a less intricate refi or purchase, but i will never use them again. 

@Ellie Hanson

It appears from your profile that you rehab your properties. I don't know about you but a lot of the distressed properties I come across are occupied by someone other than the owner, which is why they have become distressed. Distressed properties still occupied by tenants will also become more common since the sellers will now have to pay to get them out. You could ask the seller to evict before the sale and eat the cost but after the market cools and the sellers aren't just cutting 3% off the check they'll be getting you'll find they'll be less willing to work with you on that. Which means you get to pay for it and your profit on that flip just dropped roughly 5k over this ordinance. Multiply that by the 12 houses you intend to flip in a year and you just dropped your income by 60K in one year because of an ordinance that is currently illegal in the State of Oregon.

@Account Closed

How dare you bring logic and math into this! Its not supposed to make sense its supposed to make everyone feel good! :-|

I prefer Bob Ross to Bill Alexander...

Any other opinions that have nothing to do with what we're talking about on this thread?

@Michael Jones Unfortunately the reason there is an extended wait on my rehab work is because I still have a day job working 60+ hours a week as a plumber and am only able to do so much at a time. I've gotten to a point where I can no longer handle the amount of work required to do the rehabs quickly and finding good subs has been hit and miss (mostly miss) so they still take a lot of work (time) on my part. The model for the last year has been putting the biggest fires out first and letting the smaller ones lie until I have the time to tackle them. Hopefully after this last set are refinanced I will be able to transition more towards my business and away from the day job, but for now having the income makes purchase and refi much easier. First world problems, right? ;-)

@Michael Jones The notices were on a unit each in two plexes I picked up about a year ago. I do value add so I inherited the tenants in properties that were both in need of a fairly extensive overhaul and re-positioning. I've been kept busy with other properties and other units in those properties so I just let them hang on until I was ready to rehab those units, which was supposed to be March.

As far as negotiating with them goes, they both have case workers that are well aware of the new ordinance and neither have an income aside from state and private assistance. In other words, they want the money. Both also have multiple previous evictions so they know the system and how to drag the eviction process out, hence the reason I went the 90 day no-cause route... At this point the cleanest way for me to proceed was to rescind the notices and start over.

ER MA GERD... Susan, John, can the rest of us talk about the issues we're facing in Portland now? I doubt the OP started a thread called "Portland, OR Landlords -- Please Take Note" because he wanted to talk about a totally different state 1000 miles away. Feel free to start another thread about taxes and entitlements in Mississippi.

Now that we have that out of the way... My lawyer reviewed the ordinance and advised me to rescind my notices (30 day no-causes issued almost 2 months ago). For the time being at least, it appears there's not much else I can do aside from forking over thousands of dollars. Has anyone else gotten a legal opinion on the matter?

@Account Closed is saying is that the fight against rent control in a liberal city with high percentage rent increases and population growth is a loosing battle, especially in the modern world of interconnection through social media. Its no coincidence that tenants rights groups have popped up and/or grown exponentially in the last 5 years. Anyone with a grievance simply has to type it into Google or Facebook and they can find 100s or 1000s of others that have the same issues, then its easy to get the word out and organize. Couple that with entitlement issues and class warfare and you get what has begun to happen in Portland.

Portland is simply following the track that every other large city has over the last several decades, although somewhat ham-fisted. The current ordinance is a joke but unfortunately public opinion does not leave much room for change. There will likely be lawsuits to stop the ordinance, most of them based on rent control being illegal in the state of Oregon. But ultimately the state will probably make it legal rather than the other way around. The landlords that stick around in the city of Portland will simply learn to work around the rent control measures rather than fighting anything in court, making the new ordinance more or less a zero sum law. 

The sad part is that Ms Eudaly and the rest of the city council don't realize what they've done to tenants in Portland. Its the law of unintended consequences: I have to pay move out costs? I guess everyone gets 9.9% rent increases every year, and any small violation of the rental agreement will have to be written up since it may be needed to secure a with-cause eviction later on. My screening process will also be tightened up. And, starting now, any eviction I have to go through will be a 30 day and it will go on the tenant's record, rather than the tenant having 90 days to move and the eviction leaving their rental history unscathed. Ultimately, some landlords will move out, some will stay and learn to operate in the new system and all of them will be just fine. The tenants will be the one's to suffer in the post rent control market.

The Portland City council voted Thursday afternoon (2/2/17) on an addition to the housing state of emergency ordinance passed in 2015. Ordinance states that if a tenant decides to move after being given a rent increase over 10% in a year that landlord is required to pay pre-set (thousands) moving costs. This is in addition to the requirement of a 90 day notice for rent increases over 5%. The landlord will also have to pay, within 14 days, the same moving costs if the tenant has been issued a 90 day no-cause. This is apparently retro active meaning those like myself that have a 90 day no-cause or 10%+ rent increase pending are on the hook for the move out costs even though the notices were issued before the ordinance was voted in... 

Anyone here have any more info on this? My lawyer is researching the ordinance and I know there have been several threats of litigation to block it, but I haven't heard anything concrete as of yet. Any info anyone here has would be greatly appreciated.

Link to ordinance as proposed