All Forum Posts by: Brad Hammond

Great question, it depends on your comfort level.  My opinion is to hold on to the property as long as you can.  In my opinion, the fact that it's vacant is the biggest issue.  I think you need to focus on getting that filled asap.  Talk to your property manager about what the area's vacancy rate is.  If it still isn't renting I would drop the price or give a month of free rent to entice applications.  

Hey @Ravi Kumar I've done Airbnb in Portland and you need to read up on the regulations.  I would strongly recommend outside Portland, like Beaverton, wine country, or the mountain due to regulations.  The best workaround is mid-term rentals.  Let me know if you want to chat more about it.  

Yes, you will definitely want to keep them in the loop.  They might try to get you to use them to sell it or sell it off-market to another one of their customers.  Both ways benefit them but your best bet is to list it on the market.  That is where you'll get the most amount of money for it.  

In my state, you need to be licensed for 3 years before you can be a principal broker and manage other agents.  I think you should start a team instead of starting your own brokerage.  You get a lot of the benefits that way but don't have as much cost and liability.  

What if you try house hacking a multi-family property? You can use 75% of the other rents towards your income/DTI.

Hey @Ethan Kohler, on paper this is a great idea and it might work but there are a few things to look into before you get started. 

1. What is the minimum amount of equity you need to have in the first property you are taking the HELOC on? 10%, 15%? Since you purchased it 5 years ago, you most likely have enough for a new 5% downpayment.

2. For your second property, you are going to be financing 100% of the purchase price.  Make sure you are taking both loans into account when you are analyzing your properties.

3. Make sure you know exactly what your first property will rent for by looking at local rental comps. 

Hey @Benjamin Freed, yes I think you should get a credit card and pay it off every month.  You are going to need a decent credit score and getting a credit card is a great way to do that.  Beyond that, I would talk with a mortgage lender.  You could just talk to the mortgage department at whatever bank you use right now.  Your goal here is just to see what you will be qualified for and what your credit score is.  The lender can usually give you tips on how to look better to a lender.  

This sounds about right for most multi-family properties in our area, under market rents asking full price.  I would negotiate on the price but besides that, it's going to be difficult to get the tenants out.  You need to have a reason to terminate their lease or not renew it. 

If the problem tenant isn't breaking any part of the lease, I don't see why or how you could get involved.  It is going to be difficult to prove he is the one making the mess if that is in your lease.  It will be a he said she said issue.  

I used a company called Corporate Housing by Owner in Denver back in 2008(ish).  I had to pay for the service but they were going to handle everything.  The only issue is that after a few months, they didn't get anyone to rent the property.  I ended up posting it on Craigslist and it got people immediately.  If they are the same company I would not recommend them.