All Forum Posts by: Anthony Varela

Hi Randall, I'm new to RE investing and also live in the PDX metro area. I've been having the same troubles finding cash flowing properties that follow the 2%/50% rule. I've been looking out in the suburbs, Hillsboro and even McMinnville and Forrest Grove with the colleges in town. Your post got me thinking about looking out of state, but I'll need to refine that search and see what cities make sense. As for an accountant that could help you locally, Rick Hug CPA in Lake Oswego/Tigard has been our CPA for multiple business entities, a few (family) properties. He too is an investor in RE and knows about different tools and tax advantages for owners. Best of luck on your search. Let us know if you find any BRRR properties. Tony

Thanks to all for the information above.  Doesn't look like a 1031 will be needed given the little amount of depreciation when compared to the cost to initiate the 1031.  I'll look into the 121 exclusion.   

Hi AJ, Living in Beaverton/Portland myself and wanting to get into RE investing too. Have you thought about FHA / owner occupancy loans? It's true our market is really high right now and buying off the MLS at 20% down is sure to kill any cash flow. I'm a total novice, but it seems like the place here in the Portland area is either through house hacking, i.e. buying a duplex and living in one side for 5% down, or buy and hold for long term gains through equity.

Following this thread as I'm very interested to hear what others are up to in the PDX area.   

Also, have you looked at surrounding areas?   Hillsboro, Salem, Tigard etc?

Originally posted by @Dory Peters:

Actually, I make my offers site unseen. After my offer is accepted, then I'll arrange a visit for one of my team members or myself.

Since I don't want to lose any cents, the numbers first must make sense.

Otherwise, for me it's a waste of time to visit anything that I haven't already put under contract--at least in most cases.

When making offers site unseen, assuming that is over the phone, are you simply saying, "I'll pay you $XXX,XXX" and are you stating that this offer is contingent upon X?   Does any of that need to be in writing?   

Thanks

Came here to leave a question about Brandon Turner's book.   I'm thinking of buying it, but wanted to ask if the main principle is house hacking?   I'm 35 with family and convincing my wife to house hack, non-starter.   

I'm looking forward to seeing what Brandon Hicks has to share.   

Thanks guys.  

Hi BP,   

This is my first substantial post.   I'm looking for advice and possible ways to navigate through the HOT(!) Portland market as a brand new beginner to investing.   

My wife and I own two properties.   Our primary house, and the condo she purchased in 2007 before we met each other.   Due to the economic crash and the buying trends of 2007, the condo was in bad shape just 20 months ago.   Due to an interest only mortgage that was held on to for quite some time, the principle was not paid down very quickly, and to make matters worse, the property was in pending litigation for defects.   We wanted to sell, or rent and move to more space and start our family.   

Given those circumstances above, it made it hard to sell the condo, no lending to the litigation.  We were able to get a tenant in there with a two-year lease.   The good news is that the litigation is settled, no assessment is planned.  The value of the condo has increased roughly 40% in the last 20 months alone.  

Ideally, we'd like to hold onto it and continue renting, but it does not cash-flow well, just barely covering the mortgage and HOA fees. Plus, the HOA is strict on the owner-occupied ratio and if our renter leaves we are placed on a wait list and will have to float it till our name make it through that list. Not feasible.

So we'd like to sell it around the end of the year (end of lease) or continue for a few months with renter month-by-month till the spring and sell.  Any equity we receive we'd like to roll into another, preferably multi-family complex.   

A few questions I have, since this is the second property now (considered an investment property), is there a need for a 1031 exchange as far as taxes are concerned?  

Any advice to a beginner in Portland who would like to get in on the market and roll current assets into the next move?  What are possible next moves?   Any mentors, or experienced investors out there that have time to discuss?   

Thank you!  

Tony

I hope I'm not too off topic here.   Beginner investor here wondering how to get into this hot PDX market.   Are most investors here buying and holding?  I'm not interested in flipping with my full-time job.   But curious how to get in in today's markets.  I really appreciate the perspective of @Kevin Jorgensen .   If getting in now is cheaper than waiting for a potential crash if that happens.   Am I following that right?  

Hey Eddie. Like you I'm a total n00b and have been consuming all I can through the podcast, and just now (first post) in the forums. Because I'm new, I don't have advice, but a question for you based on your post. You mention you want to get into flips and wholesale, but you also mention you run two businesses. How do you plan to find the time to do the flips while also running your other businesses? I ask because while I'm interested in the lure of the flip, as a business owner myself and the time that requires, I'm formulating my real estate plan and flips are low on the list, again this is totally personal. I'm more interested in the buy and hold model to accumulate wealth through appreciation and eventual cash flow. I'd like to piggy back on your thread though and hear from seasoned investors. What do they suggest for two business owners like you and me who want to get into real estate investing? Thanks for letting me add my .02 - Tony