New to this and Proud of It (in Oregon)

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New to this and Proud of It (in Oregon)

Collin Golden
Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes

I am 25 living in Portland Oregon and have no business (or at least think I don't) buying an old crack house for $470,000. So I'm looking for help to do things a little different. Buying and holding small multi-family properties out of state seems like the best option and I have been looking at Minneapolis / St. Paul because of the low housing cost and high rental market (my own analysis may be off). 

At the same time I am a full time Account Supervisor at a digital marketing firm who loves business/finance books over novels (recommendations please!) I'm not totally one track mined however. I get out on my motorcycle often, explore the woods, mountains, ocean and love to snowboard, mt. bike, and race go karts.

Any direction down the right path would be appreciated and I hope to be able to share what I am learning along the way and pay it forward. 

Excited to get to know some of you, and dive into this! 

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Tim Johnson
Investor · Becker, MN · Member since 2014 · 144 posts · 82 votes
10y

Welcome @Collin Golden.  I really thing you should reconsider that $470,000 crack house...let's partner up and get it done! (just kidding)

I'm in Minnesota.  I've looked around a lot for multifamily properties and purchased my first (18 unit) multifamily last year.  So far so good!  I've only looked in Minnesota so I can't speak to how Minneapolis compares to the rest of the country.  Rental market is strong here...I frequently have people calling to see if I have any vacancies.

It would scare me to invest out of my area, but I guess that doesn't mean you shouldn't do it.  Let me know if I can help.

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  • Kory Thaut
    Investor · West Linn, OR · Member since 2015 · 100 posts · 58 votes
    10y

    @Collin Golden Welcome to BP!  I am starting the process of investing out of state of state as well to compliment my Oregon investments.   Lots to learn on that front.  My experience to-date has been primarily SFRs in Lake Oswego, Tualatin, & Tigard.  Lots of great information on this site, and mostly free too.  

    0Reply
  • Collin Golden
    OP
    Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes
    10y

    @Kory ThautGlad to hear someone close by is doing the same thing! Would love to hear how your investing out of state goes. Sounds like you are pretty far into the property investment world already. When did you start?

    0Reply
  • Tim Johnson
    Investor · Becker, MN · Member since 2014 · 144 posts · 82 votes
    10y

    Welcome @Collin Golden.  I really thing you should reconsider that $470,000 crack house...let's partner up and get it done! (just kidding)

    I'm in Minnesota.  I've looked around a lot for multifamily properties and purchased my first (18 unit) multifamily last year.  So far so good!  I've only looked in Minnesota so I can't speak to how Minneapolis compares to the rest of the country.  Rental market is strong here...I frequently have people calling to see if I have any vacancies.

    It would scare me to invest out of my area, but I guess that doesn't mean you shouldn't do it.  Let me know if I can help.

    2Reply
  • Tony Otis
    Investor · Minneapolis, MN · Member since 2014 · 34 posts · 13 votes
    10y
    Originally posted by @Tim Johnson:

    Welcome @Collin Golden.  I really thing you should reconsider that $470,000 crack house...let's partner up and get it done! (just kidding)

    I'm in Minnesota.  I've looked around a lot for multifamily properties and purchased my first (18 unit) multifamily last year.  So far so good!  I've only looked in Minnesota so I can't speak to how Minneapolis compares to the rest of the country.  Rental market is strong here...I frequently have people calling to see if I have any vacancies.

    It would scare me to invest out of my area, but I guess that doesn't mean you shouldn't do it.  Let me know if I can help.

     Curious, how were you able to find the 18 unit deal?  Seems like a pretty big start for your first multi-family!

    0Reply
  • Tim Johnson
    Investor · Becker, MN · Member since 2014 · 144 posts · 82 votes
    10y

    I had done rehabs and rental homes, so I wasn't starting from zero.  But yes, it was a big step up for me.  I found the deal through networking.  A contractor I use mentioned one of his other customers was retiring from the business and looking to sell his rental property.  

    0Reply
  • Jeremy Rasmussen
    Stillwater, MN · Member since 2014 · 24 posts · 8 votes
    10y

    Hello and welcome.

    I'm a buy and hold investor in Minneapolis. We actually share a lot of the same interest and I'm also a freelance copywriter haha.  I can recommend a ton of books or hook you up with a lot of professional contacts here in the twin cities.  

    If that's something that interests you than message and we can set up a time to talk.

    Take care and best of luck!

    0Reply
  • Scott Martinson
    Investor · Minnetonka, MN · Member since 2015 · 24 posts · 15 votes
    10y

    Here is my $.02 worth.  I have 4 duplexes and just closed on my first commercial/industrial building today.  I can't imagine having my first real estate transaction be on an out of state property.  Managing across country for a seasoned investor might work, but my personal opinion is that it would be tough. Multi family prices SHOULD be based more on cash flow value as an investment.  If you look hard enough you should be able to find a suitable investment in your market.  

    BP has tons of podcasts/articles about finding deals.  I recall one where a guy in Southern California is finding lots of deals.  Everyone knows that's a competitive market, but he still finds deals.  Take your time and find a deal in your back yard so you can manage it much easier.

    Also my opinion, but I don't think most deals here are good.  You'll have to hunt to find one where the numbers make sense.

    Buy where you know.

    0Reply
  • Collin Golden
    OP
    Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes
    10y
    Originally posted by @Tim Johnson:

    Welcome @Collin Golden.  I really thing you should reconsider that $470,000 crack house...let's partner up and get it done! (just kidding)

    @Tim Johnson Yes! I've been looking for a partner in the crack house game! 

    Congratulations on the 18 unit! I do have a lot of family out in the twin cities so I am pretty familiar with it but I know it's still a big difference from living there. 

    0Reply
  • Collin Golden
    OP
    Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes
    10y
    Originally posted by @Jeremy Rasmussen:

    Hello and welcome.

    I'm a buy and hold investor in Minneapolis. We actually share a lot of the same interest and I'm also a freelance copywriter haha.  I can recommend a ton of books or hook you up with a lot of professional contacts here in the twin cities.  

    If that's something that interests you than message and we can set up a time to talk.

    Take care and best of luck!

     Thanks Jeremy, Seems like your a busy guy! Any books you would recommend would be amazing! Still getting the lingo down for real estate, so I may have to take you up on the professional contacts a little bit later when I don't come off like a complete newbie! 

    0Reply
  • Collin Golden
    OP
    Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes
    10y
    Originally posted by @Scott Martinson:

    Here is my $.02 worth.  I have 4 duplexes and just closed on my first commercial/industrial building today.  I can't imagine having my first real estate transaction be on an out of state property.  Managing across country for a seasoned investor might work, but my personal opinion is that it would be tough. Multi family prices SHOULD be based more on cash flow value as an investment.  If you look hard enough you should be able to find a suitable investment in your market.  

    BP has tons of podcasts/articles about finding deals.  I recall one where a guy in Southern California is finding lots of deals.  Everyone knows that's a competitive market, but he still finds deals.  Take your time and find a deal in your back yard so you can manage it much easier.

    Also my opinion, but I don't think most deals here are good.  You'll have to hunt to find one where the numbers make sense.

    Buy where you know.

    Congratulations on the first commercial/industrial building! You are right, overall I do need to dive way deeper in my own market to get experience and find deals. 

    Starting out I was/am a bit overwhelmed with the housing stories I am hearing in Portland. Competing with people buying all cash 10% above the asking price. They are common stories but there must be some exceptions out there if I can dive deep enough. 

    Do you recall the episode number with the Souther California guy?

    0Reply
  • Scott Martinson
    Investor · Minnetonka, MN · Member since 2015 · 24 posts · 15 votes
    10y

    I don't recall the episode number but it was earlier on. I've probably listened to more than half of the episodes. One of the keys I have learned is that you likely need to find an off market deal to find a good financial deal. Many of the smaller properties in MN you find on the MLS are break even at best. Don't settle for break even.

    One strategy I personally will be able to use is through my landscaping company.  I get around my town a lot and know who my older customers are.  Once I get financing in place for my next deal, I want to start telling all my older customers I'm an investor.  I may be able to find an older fixer upper that way.  I also know where the distressed properties (condition wise) are located.  I can send letters to those property owners.

    Do you have some special insight that you could put to work? 

    1Reply
  • Claire Trammell
    Bakersfield, CA · Member since 2016 · 543 posts · 281 votes
    10y

    Welcome @Collin Golden!!

    Love your attitude and sense of humor! Glad to have you in the BP community!

    0Reply
  • Evan Bellingar
    Investor · Newberg, OR · Member since 2016 · 90 posts · 19 votes
    10y

    Hi Collin,

    Welcome. Getting started at 25 will pay rich dividends over the long haul, wherever you invest (for the most part).

    For something a little closer to home, how about McMinnville or Salem? I don't invest there personally but a quick look on Loopnet.com shows lots of multifamily listings.

    Evan 

    0Reply
  • James Swift
    Mcminnville, OR · Member since 2014 · 10 posts · 1 vote
    10y

    HI Collin,

    Evan is right about Mac and Salem, They are definitely more affordable with less competition. We are still getting 100K houses out here. They NEED lots of work but the rental market here is good with limited supply. You have a good mix of college students from Linfield and locals competing for a limited number so the monthly rents are on the higher end for what I would expect in the SFR realm. Not a whole lot of Multifamily. The ones that pop up tend to be in the not so good areas and the larger multifamily appear slightly over priced but I think that is pretty normal for larger multi's right now.

    1Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Collin Golden

    Welcome. Fill in the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Collin Golden  having invested all over the US and still do.. I suggest as a beginner investor you buy something you can drive to as a first investment.   there are many markets within 1 hour drive of PDX were you can buy props as cheap as the mid west... NOT the 30k cheap but 100k cheap.

    Once you get the feel for it expansion is possible  unless of course you are going partner with family in MN  then that is doable.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Collin Golden and number ONE best advice I think for someone on west coast is hands down house hack.. buy 4 plex with your FHA 3.5% down with these rates its an awesome way to start

    investor loans will require 15 to 30% down and have higher rates... live in the FHA for one year then you can move out. And you can buy a prime PDX inner city property for the same down as you would be spending on a C class multi in other areas.. far better play for someone your age and with a very long term horizon ahead of you

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Collin Golden
    OP
    Snohomish / Skagit County · Member since 2016 · 6 posts · 5 votes
    10y

    @Evan Bellingarthat's the plan, trying to start early! McMinnville or Salem seems much more feasible without jumping all the way to the mid west. 

    @James SwiftInteresting, I didn't realize there was much of a housing shortage in Salem. I went to college at UofO, if my memory serves me well, I want to avoid renting to collage students as much as possible :). Regardless Salem still seams like a good option!

    @Paul TimminsThanks for all the resources! I am on the look out now for some REIA's, I'm excited to jump into these resources as well. Would be great to have a better grasp on rehab estimates when looking over a place.

    @Jay HinrichsI do like the idea of getting an FHA for a 4 plex on the west coast. The idea of coming close to the $700,000 for Clackamas County is a bit terrifying, but I guess that's where the planning and deal finding comes in... I see you are in Lake Oswego, do you have any REIA's you would recommend?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Collin Golden  go to RAREBIRD   Mike Nuss runs it.. quality content without sales pitches.

    and I am not just saying that because they had me as a speaker once...  they never did invite me back  LOL.

    but in all seriousness great group.. Mike and his partner do deals.. they come from appraisal backgrounds so really know the nuts and bolts of the business and the folks that attend are very nice people that are doing deals as well.. I have not been to the REIA events in PDX in many many years... I did a BP meet up got a lot of people there but I don't think much was done.. it was more socializing and making contacts.. not really that much of a learning environment like Rarebird is.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • James Swift
    Mcminnville, OR · Member since 2014 · 10 posts · 1 vote
    10y

    Sorry about that Collin,

    I was more referencing Mcminnville. Salem is obviously larger and I think that it is easier for people to find housing there. Mcminnville has more of a shortage. The college here is small so you are more likely renting to families than you are students. The economy appears to be picking up quickly out here and coming from Sonoma county CA I am starting to see lots of similarities.  Long term I think  MAC is a good place to invest.  I think in the future it will be a good hub connecting the coast and the valley to those in Portland and the wine industry is only getting larger.

    0Reply
  • Scott Martinson
    Investor · Minnetonka, MN · Member since 2015 · 24 posts · 15 votes
    10y

    @Collin Golden just and update about the strategy I mentioned I would use in the future.  A customer called my landscape company to do some work at his house.  While discussing his job he mentioned he was getting the house ready to sell.  As we walked the property he talked about all the jobs he needed to do.  I sympathized with him and asked if he could give me a tour and maybe I would buy the house.  He agreed (this was last Friday).  Yesterday I went back with my realtor and did another walk through.  Realtor and I confirmed my rehab costs and I made him an offer.  Told him I could close in a month (that's when he wanted to list it) or we could wait until he finds a place to live.  He's going to let me know tomorrow.  I felt a little sheepish with my offer, but I spoke with confidence of what I could offer him.  He seemed relieved he had a viable offer that could cover his needs.

    My key here is that I was able to find this guy when there isn't a swarm around him.  It might work to my advantage.  Even if I don't get the property it has been a valuable learning lesson.  I wasn't expecting to find a possible deal within a month of my last deal.  Fortunately I like to talk to people and ask a lot of questions in conversation.  I'll keep you posted. 

    Put your radar up.  Talk to people.

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