Cash Flow in Oregon? - Albany, Lebanon, Corvallis
Most Popular Reply
Dan GandeeBusiness Member
Investor · Eugene, OR · Member since 2021 · 93 posts · 117 votesI've got a few mill in rental properties that I've BRRRR'd here in a Oregon, but most of acquisitions have been creative deal structure or joint ventures when we need to raise capital to get to a 50% LTV for maximized cash flow. My suggestion with you would be to raise capital or focus on marketing for off market deals (yes, I'm a broker telling you not to buy from me). The majority of our acquisitions are coming from my marketing machine I built. It's not that these properties don't cash flow, they just don't cash flow at traditional LTV entry levels. But appreciation and value add play has made us a killing. Most of the investors I know that complain about cash flow only flip 1-2 properties per year or own like 4 doors. All good insights but you need to be getting your advice from someone that has scaled to multiple states from ZERO. My mentor taught me this a long time ago. Learn creative finance - build the portfolio brick by brick, door by door. Don't stop until you hit your target gross income goal (think retirement and replace your 9-5 job). Happy to jump on a call and get better acquainted to share my two cents. Send me a message!
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15 Replies
- Lender · Austin, TX · Member since 2021 · 448 posts · 441 votes2y
From most of the deals I have seen, a lot of people in Oregon are BRRRRing and can buy deals undervalued and rent them out with solid rental income.
- Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes2yHey Chris, welcome to the forums and congrats on taking the plunge! Plenty of folks are making investments work in the valley, but you can't just buy a turnkey house on market, put 20-25% down and expect to cash flow well. You'll need to get creative, either through house hacking or some sort of value-add or STR/MTR or student rentals if you're near OSU.
Quote from @Chris P.:
After years of being on the sideline, finally taking the plunge into real estate investing. Prices here in Oregon just don’t seem to support real estate investing in my area of Albany, Lebanon, Corvallis. I have hesitation with out-of-state investing, and I would like be hands on with my rentals as well as not use a property manager. I know Oregon has its issues with being a very tenant friendly state, but people are making it work. How are people investing here and making cash flow? I get you can make anything cash flow if you start with a big enough down payment. Would appreciate any and all suggestions and guidance!
Thanks
What Oregon lacks in cash flow we make up for in appreciation. The landlord/tenant balance is not necessarily in our favor, but much of the uproar is overblown. As long as you treat tenants with respect and own in at least a B- location, you should avoid much of the headaches you see in the headlines.
i would suggest getting connected with the Salem REIA and start networking with folks there to learn more about how to be successful in your area. Eugene, where I am, is similar but not the same.
I'm happy to point you towards folks who can help or answer questions! DM if you'd like. - 2yMike GrudzienPro MemberLender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
Chris E.,
I concur with Chris W. Spot on. Yes, people are making it work in Oregon. Also check out the OREIA group in Eugene/Springfield.
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
house hack.
@Tanner Lewis Thanks for the reply, seems like driving for dollars or connecting with a wholesaler would be my best bet to find a property to brrrr.
@Chris Watkins thanks for the insights and suggestions, Chris (great name by the way!). I realized really quickly while browsing the likes of Zillow that there aren’t simple turnkey 20-25% down properties and will need to be creative with a solution. My wife and I are considering multifamily house hacking but seems like inventory is very slim around my area and retail prices still don’t make sense for cash flow. We have small children so I think the benefits would really need to outweigh the negatives to make a move like this. We would plan to keep our current home and rent it out as well if we did this.
I appreciate your insight on the tenant-landlord relationship, makes sense to target a better quality neighborhood to hopefully prevent some of those issues.@Mike Grudzien Thank you! Looking at local groups, it looks like we have one that meets very close to me in Corvallis. Eugene is a bit of a drive, but I’m sure the insight gained would be well worth it. Would likely start more locally and venture out from there. I appreciate the recommendations!
- 2yMike GrudzienPro MemberLender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
The Eugene/Springfield Chapter of Oregon Real Estate Investors Association does a lot of Zoom. We have folks join in from Portland, Salem, Corvallis, etc.
Mike
- Real Estate Agent · Member since 2018 · 459 posts · 414 votes2yThere’s a Corvallis/Albany REI group as well if that is a closer commute for you. There’s a private FB group that we can add you to.
Quote from @Chris P.:
After years of being on the sideline, finally taking the plunge into real estate investing. Prices here in Oregon just don’t seem to support real estate investing in my area of Albany, Lebanon, Corvallis. I have hesitation with out-of-state investing, and I would like be hands on with my rentals as well as not use a property manager. I know Oregon has its issues with being a very tenant friendly state, but people are making it work. How are people investing here and making cash flow? I get you can make anything cash flow if you start with a big enough down payment. Would appreciate any and all suggestions and guidance!
Thanks
@Lawrence Potts I’m hoping to attend the next meeting if my work schedule allows. I got rid of Facebook years ago. I’ll see if my wife could join the group. Thanks!
- 2yDan GandeeBusiness MemberInvestor · Eugene, OR · Member since 2021 · 93 posts · 117 votes
I've got a few mill in rental properties that I've BRRRR'd here in a Oregon, but most of acquisitions have been creative deal structure or joint ventures when we need to raise capital to get to a 50% LTV for maximized cash flow. My suggestion with you would be to raise capital or focus on marketing for off market deals (yes, I'm a broker telling you not to buy from me). The majority of our acquisitions are coming from my marketing machine I built. It's not that these properties don't cash flow, they just don't cash flow at traditional LTV entry levels. But appreciation and value add play has made us a killing. Most of the investors I know that complain about cash flow only flip 1-2 properties per year or own like 4 doors. All good insights but you need to be getting your advice from someone that has scaled to multiple states from ZERO. My mentor taught me this a long time ago. Learn creative finance - build the portfolio brick by brick, door by door. Don't stop until you hit your target gross income goal (think retirement and replace your 9-5 job). Happy to jump on a call and get better acquainted to share my two cents. Send me a message!
The Operative Group | REAL5138 Reviews - Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes2y
Quote from @Chris P.:
@Tanner Lewis Thanks for the reply, seems like driving for dollars or connecting with a wholesaler would be my best bet to find a property to brrrr.
@Chris Watkins thanks for the insights and suggestions, Chris (great name by the way!). I realized really quickly while browsing the likes of Zillow that there aren’t simple turnkey 20-25% down properties and will need to be creative with a solution. My wife and I are considering multifamily house hacking but seems like inventory is very slim around my area and retail prices still don’t make sense for cash flow. We have small children so I think the benefits would really need to outweigh the negatives to make a move like this. We would plan to keep our current home and rent it out as well if we did this.
I appreciate your insight on the tenant-landlord relationship, makes sense to target a better quality neighborhood to hopefully prevent some of those issues.@Mike Grudzien Thank you! Looking at local groups, it looks like we have one that meets very close to me in Corvallis. Eugene is a bit of a drive, but I’m sure the insight gained would be well worth it. Would likely start more locally and venture out from there. I appreciate the recommendations!
Wholesalers can be a good source for off-market deals, but the challenge is that a quick close (10-20 days) is often necessary to buy from them, so traditional financing is often not an option. That means that you're likely going to either need to pay cash or use a hard money lender to buy the property. If going the hard money route, you need to have a relationship with one, be pre-approved and ready to go fast when a deal comes available. All adds up to a lot for a first-time investor, so proceed with eyes open.
You're also right that small multi-family properties are hard to find because they are attractive to investors. House hacking is a great way to start if your family situation will allow it, paying 3.5-5% down instead of 25% can be a huge advantage. Keeping your current place as a rental is also a great move, though lending guidelines have changed recently to make it a little harder to count that rental income when qualifying for the new place. Traditional lending will be easier to get, but you'll still want to be pre-approved, connected with a good agent, and ready to pounce on a good deal, as they move quick!
If you can connect with @Lawrence Potts or @Dan Gandee, they're both great resources for investing in the valley. I can help on the lending side if you have questions there!
- Real Estate Agent · Member since 2018 · 459 posts · 414 votes2y
Quote from @Chris Watkins:
Quote from @Chris P.:
@Tanner Lewis Thanks for the reply, seems like driving for dollars or connecting with a wholesaler would be my best bet to find a property to brrrr.
@Chris Watkins thanks for the insights and suggestions, Chris (great name by the way!). I realized really quickly while browsing the likes of Zillow that there aren’t simple turnkey 20-25% down properties and will need to be creative with a solution. My wife and I are considering multifamily house hacking but seems like inventory is very slim around my area and retail prices still don’t make sense for cash flow. We have small children so I think the benefits would really need to outweigh the negatives to make a move like this. We would plan to keep our current home and rent it out as well if we did this.
I appreciate your insight on the tenant-landlord relationship, makes sense to target a better quality neighborhood to hopefully prevent some of those issues.@Mike Grudzien Thank you! Looking at local groups, it looks like we have one that meets very close to me in Corvallis. Eugene is a bit of a drive, but I’m sure the insight gained would be well worth it. Would likely start more locally and venture out from there. I appreciate the recommendations!
Wholesalers can be a good source for off-market deals, but the challenge is that a quick close (10-20 days) is often necessary to buy from them, so traditional financing is often not an option. That means that you're likely going to either need to pay cash or use a hard money lender to buy the property. If going the hard money route, you need to have a relationship with one, be pre-approved and ready to go fast when a deal comes available. All adds up to a lot for a first-time investor, so proceed with eyes open.
You're also right that small multi-family properties are hard to find because they are attractive to investors. House hacking is a great way to start if your family situation will allow it, paying 3.5-5% down instead of 25% can be a huge advantage. Keeping your current place as a rental is also a great move, though lending guidelines have changed recently to make it a little harder to count that rental income when qualifying for the new place. Traditional lending will be easier to get, but you'll still want to be pre-approved, connected with a good agent, and ready to pounce on a good deal, as they move quick!
If you can connect with @Lawrence Potts or @Dan Gandee, they're both great resources for investing in the valley. I can help on the lending side if you have questions there!
Happy to help out @Chris P. My wife and I got started house hacking in Lebanon and Albany. Send me a message or give me a call and then I can get you connected to the REI group in Corvallis.
Sometimes wholesalers are assigning contracts to other wholesalers without even knowing it. So by the time it gets to you, it may have already passed a few assignments. Which can cause higher risk of the deal falling through if any of those parties fail to perform. Very common with inexperienced wholesalers.
Quote from @Dan Gandee:
I've got a few mill in rental properties that I've BRRRR'd here in a Oregon, but most of acquisitions have been creative deal structure or joint ventures when we need to raise capital to get to a 50% LTV for maximized cash flow. My suggestion with you would be to raise capital or focus on marketing for off market deals (yes, I'm a broker telling you not to buy from me). The majority of our acquisitions are coming from my marketing machine I built. It's not that these properties don't cash flow, they just don't cash flow at traditional LTV entry levels. But appreciation and value add play has made us a killing. Most of the investors I know that complain about cash flow only flip 1-2 properties per year or own like 4 doors. All good insights but you need to be getting your advice from someone that has scaled to multiple states from ZERO. My mentor taught me this a long time ago. Learn creative finance - build the portfolio brick by brick, door by door. Don't stop until you hit your target gross income goal (think retirement and replace your 9-5 job). Happy to jump on a call and get better acquainted to share my two cents. Send me a message!
@Dan Gandee thanks for your insight and motivation! I came across your YouTube videos and have watched quite a few of them, now. I have a new optimism in investing in my local area. Would love to hear your two cents. Will send a message your way. Thanks!
@Lawrence Potts thank you! I would really like to chat with you about your experience with house hacking in Albany and Lebanon since my wife and I are really considering this route if we could find something that will work for us. Sending you a message. Thanks!
@Chris Watkins Thanks, Chris. I will definitely keep you in mind.
- 2yMike GrudzienPro MemberLender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
@Chris P.,
Glad you found @Dan Gandee. If you can mange to get even a little of his advisory time; it's worth it's weight in gold. And I'm not overstating. Over and above titles like "agent" or "broker", Dan Gandee is a real estate STRATEGIST. He can slice and dice a deal a dozen different ways. He primarily works with investors, either building or liquidating portfolios.
"One of the sharpest real estate minds in the business" (and even a nice guy to boot!)
p.s.Yes, I am prejudiced, but only because Dan has made me a lot of money and helped me avoid even more headaches!
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