New Investor - Medford, Oregon Area

18 Replies

Hello Everyone,

Great site. I just wanted to introduce myself, I live in Medford, Oregon.  

I am new to Real Estate, but it's always been a goal of mine ever since reading Rich Dad Poor Dad in High School.

I recently moved back to Medford in 2013 after the military and have done a wide variety of investing, just not real estate. I said 2018 is the year I want to jump onto my main goal of buying and owning rental properties.


I'm looking to invest in 4 Areas;

1. Portland Area

2. Eugene/Spring Field Area

3. Roseburg/Winston Area

4. Medford/GP Area) 

I'm interested in the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) and would like to begin ASAP.

Main question would be if any investors in the Oregon have worked with any Rehab Teams / Property Manager in the area.

If you could leave your comment/opinion of their work, I would highly appreciate it.

Thanks

Brent

Welcome to BP @Brent M.   Good luck crushing your 2018 goal!

Thanks @Ryan Cox , I'm still deciding if I want to buy my first investment through a turn-key or do the buy / contract rehab myself.  

Right now turn-key looks to be simple straight forward, I pay cash (Buy House/Rehab) get my first rental inside an LLC and begin to get the cash flow, what to look out for, learn a bit on filing taxes, etc.

What was your first experience in investment properties? did you buy yourself and contract out or turn key?

@Brent M. I am here in Eugene, but all my REI is out of state, turnkey and otherwise.

Howdy Brent,

Funny, I moved here in 2013 after getting off AD too!  We're not from here though.  I was stationed around the PNW and evaluated the markets in Bellingham, Eugene, Bend and Medford/GP.  This place seemed to have the most potential and we love it here.

I've been concentrating on multi's throughout the valley.  It's gotten kind of hard to find single families that pencil out around here.  I have an accepted offer on one so I'm off the market for a bit.  I can point you towards a couple I've had a chance to look at if you're interested.

Welcome back.

Originally posted by @Brent M. :

Hello Everyone,

Great site. I just wanted to introduce myself, I live in Medford, Oregon.  

I am new to Real Estate, but it's always been a goal of mine ever since reading Rich Dad Poor Dad in High School.

I recently moved back to Medford in 2013 after the military and have done a wide variety of investing, just not real estate. I said 2018 is the year I want to jump onto my main goal of buying and owning rental properties.


I'm looking to invest in 4 Areas;

1. Portland Area

2. Eugene/Spring Field Area

3. Roseburg/Winston Area

4. Medford/GP Area) 

I'm interested in the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) and would like to begin ASAP.

Main question would be if any investors in the Oregon have worked with any Rehab Teams / Property Manager in the area.

If you could leave your comment/opinion of their work, I would highly appreciate it.

Thanks

Brent

 Hello and welcome! Best of luck to you!

@Michael Nosbaum Nice, I was stationed overseas in Germany/Japan for 9 Years and enjoy coming back to Medford haha although it was much larger then when I had left.

Yeah this area seems a bit expensive, you may not always get a high ROI but appreciation seems to be crazy right now which can work against you too. I know someone who paid 400k in 2006 for a house in Central Point, after the housing crash it bottomed out in 2013 at 257k. Right now after nearly 5 years it may of recovered the cost, but I still feel seeing the house I don't think it would sell for 400k.

I was looking at buying a new house, renting out my current house.  After running the math I decided I wanted to buy a few investment properties to get me started and wait for a better opportunity instead of buying.

I'd be interested in seeing what is available and out there, I am talking with a turn key provider now - out of state.  I am always interested and seeing and learning what I can.

Thanks,

Hi Brent. There are a number of PMs here, I personally use Northwoods PM for my multi family rentals, they also reach up to Eugene which could be a benefit if you're planning on investing there. Others in the Rogue Valley are CPM, QPM, Oak Tree, My Favorite Property Managers, and so on. It'd be wise to call and vet them out, the rates are around 7-8% for multis, some have fees on top of that, some do not.

Shout out to the local REIA, they meet about once a month if you're interested:

https://www.meetup.com/Rogue-Valley-Real-Estate-Investors-Network

@Jordan Beckett excellent information, thanks I'll write those names down to check.  I don't own any properties now, but it's always nice to have a list of ones people have worked with and had little conflicts with.

I did sign up for the REIA group a few days ago and plan on joining in the meetings, Wife, Kiddo and I are excited to get started in real estate.

Thanks for your response, I appreciate it.

@Brent M. No problem. On your rehab team question, that's a bit more involved. Finding a good contractor is a process--however, you may be able to pull leads by calling PM companies and getting their handyman/plumber/electrician contact info. 

My initial rehab process was I did a number of repairs myself, and then sought out a contractor for the specific task I wanted to hire out (ie Robert @ Southern OR Wood Floors does fantastic hardwood refinishing). Fast forward to today, I have a quasi GC doing a rehab where he does the majority of the work in house, subbing out a few tasks, and I'm hiring a couple contractors directly and then coordinating scheduling.

If you are looking at a specific repair task and want contractor referrals, I'd be happy to assist and provide my $.02.

Use CL as a last resort; a lot of no shows and family emergencies is all I got from craigslist. Good luck!

@Jordan Beckett I run a YouTube channel focusing on different methods of investing and made a video on Feb 25th about a house I had seen in Roseburg for ~44k surrounding houses are 100k+, talked about rehab costs and such looking ~25-30k and reappraising above 100k afterwards.   Checked on it today... and home has a pending offer so I see someone also saw this as a good buy and fix.

Your method sounds like an excellent way to seek contractors in specific areas.  I think step 1 is to look for great buys and just make an offer once you have your foot in the door with a great deal work on getting necessary contractors otherwise.  I miss these chances such as the one I had looked at.

Well I want to get started the right way so I started up my LLC and getting all my stuff tagged along for Oregon.

I searched for Oregon LLC / LLC Oregon to see if anyone had posted their "start up procedures for getting into real estate in Oregon.

I think I might share my start up experience and where I went so I think i'll be making notes and putting together another post so anyone in the future, looking to get into real estate can see my process and what I did and any issues that took place or steps I swapped around.

Thanks everyone!

Welcome @Brent M. I'm in your area and usually do the rehabs myself subbing out specialties. I like to keep the costs down so I don't use rehab teams. 

@Kami Carlson Ah interesting, If it's local I wouldn't mind doing the rehab myself as well and subbing out specialties. 

I'd like to start using the BRRRR strategy, but don't think i'll start with Medford unless I can get a good buy in point. I feel the initial buy in cost is a bit high for what's out there v.s where I feel the market should be.

Just keeping a look out for some good buys even if it's not local :-)

Thanks for saying hello!

@Brent M. The Rogue Valley has very few deals with a good start point, but if you don't mind branching out a bit, try KFalls. Still Southern Oregon, but not quite backyard close. Learn the neighborhoods first though. There's some sketchy spots. Best of luck.

@Kami Carlson , Yeah I've setup to talk with my real estate agent who had sold me my original current house.  We were discussing entry into areas outside of the valley, it's very expensive even a house near Columbus will be 80-100k and those are "rough" neighborhoods no one really wants to buy in.  If I find a house I'll look a few blocks in either direction at the house prices, compare like houses together 2/1 to another 2/1 house or 3/1 to another 3/1 house and where the price is at to see if I rehab and refinanced where it would sit.

I of course also look using google earth to see the neighborhood as I will end up buying out of area, i'll contact PM companies first see local rents and see if they know if any good contractors for x/x/x and see if it's worth going into the area.

I have to learn about "what can be written off if a house is purchased rehabbed inside an LLC"

I'm a new investor out here in Medford as well!  Been looking to buy since November and made 4 offers -- all rejected.  But hey, we're told to expect that right?!  It's definitely a tough market in the Rogue Valley; it is absolutely a seller's market and you don't get a lot for all the money people are asking.  I would like to do out of area investing but not at a place where I can make that kind of investment yet--someday!  

Good luck and I look forward to hearing about what has worked and not worked for you!

@Janis A. - Paying full cash is the only way your going to be landing anything (Anywhere).  

Did you offer in cash at their asking price?

This is my Plan:

Step 1:  Offer on 35-50k Cash Offer and Lock In.

Step 2: Home Inspection to see Cost of Rehab.

Step 3: 15-30k Rehab 

Step 4: Appraise to local area value

Step 5: Rent It Out 

Step 6: Make some cash flow and by 6-12 Months refinance my initial money out.

*Note - Keep ~$100-200 Cash Flow After (Taxes, Bills, Etc) *

Step 7: Repeating the process.  

I'm pretty young so I'd rather not get taxed on my cash flow right now and instead build my real estate portfolio up making 100-200 cash flow on each property and when I have 12+, focus on paying those off, my cash flow will increase quickly after that where now my cash flow can be my money going in or I "could" live off it if I choose to, but still young.

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