All Forum Posts by: Brad Hammond

@Telecia Smith, that is awful I'm sorry you are going through that.  Hopefully you have everything documented if you ever need to prove anything.  I would suggest paying your rent into an escrow account until this gets fixed.  That way they don't have access to it but you can show you are still paying your rent on time.  Make sure you tell them and give them one final chance to contact you before making the change.  

Hi @Jake Guthrie, congrats on deciding to become an investor.  It might not seem like it right now but that is the hardest part about investing.  In my opinion, I think you should look into house hacking or flipping.  There are some other lower-cost ways to get started like condos and rural areas.

If you are open to it, let's do a quick video chat about different strategies.  I've done a few master classes on house hacking and I can give you the high points.  

Hey @Willis Weeams, welcome to the forums!!  Right now it is extremely competitive in any good market right now.  When you are looking for a market to invest in, you will want to find one that has job growth and has an influx of people moving there.  Usually, these go hand in hand since people go to where the jobs are.  From there you will want to find out which market is best for you.  Can you get there easily (direct flight/easy drive), and do you know anyone there that can help you get a lay of the land?

Hey @Jon Albar, sounds like you are getting a great start to investing already, congrats!! An FHA loan is not a first-time home buyer loan so you can use it if you already own another property. The only caveat is you can only have one FHA loan at a time.

However, you can get a conventional loan with the same low downpayment so I would look into that as well. Usually, you would only use an FHA if your credit score wasn't high enough to qualify for a conventional. Talk to a lender about this when you get to that point in your process. They will help you find the best loan option for you.

@Burt L., Some people, I'll tell ya.  Since you want them out I would not agree to any of their "demands".  Just tell them "sorry, I'm not able to do that".  Then tell that it sounds like this property is not ideal for you so you will give them all their money back and let them out of the lease.  The key here is that you have them tell you they want to leave and not you telling them they can't live there.  That will put any liability on them.

Since you signed the lease, you must uphold your end of the agreement.  

@Mohamed Ghoneim, it sounds like Covid is not an issue, they want to be there for their own piece of mind.  I would have them give you 3 days/times that work for them and you choose which is best for you.

You do not need to do this but I think working with the renter when you can is always a good idea.  

Hey @Mohamed Ghoneim, @Bjorn Ahlblad is correct about covid preventing property owners from accessing their rentals.  Even with that, you still have a right to inspect your property.  Here is what I would suggest.  Once the appraiser tells you when they will be there, let the tenant know you will be there during that time.  Give them a time frame to give yourself plenty of leeway on each side.  Don't ask permission, just tell them that is when you will be there and they don't need to be present.  Give them plenty of notice via email, call/text, and first-class mail.  Also, send them a reminder the day before and the day of.  

If you suspect they will give you push back, let them know that everyone entering will be wearing all the covid protocol, you will be the only one touching anything and you will be wearing gloves.  It wouldn't be a bad idea to record the appraiser while they are inside just in case you need to prove anything (something was stolen, damaged, touched, etc.).

Hey @Logan Loughmiller, thanks for those kind words!  You are in a tricky spot and there is no one right answer.  Here are some of my thoughts.

1. See if you can contest your appraisal, but I'm sure your agent is already working on this.  

2. If this property checks all your personal boxes, that means a lot and should not be taken lightly.  

3. How long are you planning to hold this for?  Yes, Portland does have plans to revitalize 82nd but it is going to take 5+ years to achieve those goals.  It will however continue to appreciate in the meantime.  It is hard to say if you will end up getting that $20k back when you sell or not.  There are too many unknowns to try and predict that.  

4. Keep in mind that Short term rental income is taxed differently than rental income.  I would need to double-check my previous tax returns but it is either taxed as ordinary income or self-employed income.  That could end up being a big surprise come tax time next year. 

This is going to be a personal opinion @Jeremiah Lewis.  I personally am a fan of debt so I always go for 30-year mortgages.  If you are having a rough patch for a few months, you don't need to pay the higher mortgage cost for one thing.  Also, you could apply that cash flow towards the mortgage if you wanted, or keep it as reserves. 

Now that you have the 15-year mortgage, I would just move forward with your plan.  Forcast out when you'll have $100k in equity by looking at the amortization calculator and making a plan from there.  

Hey there  @Cory Lucas, doors take a beating.  I've seen barn doors in rentals (usually higher end) and people love them.  They are a simple concept, just make sure there are good stoppers and pieces that can be easily replaced.  You could get a pocket door but you would need to cut a big hole in the wall to install it.