All Forum Posts by: Cody L.

Quote from @Joel Duby:

So, working a deal what I think has great potential. 

BTW, that describes the big difference between the real estate mentors 40 years ago and the ones today.  The ones forty years ago probably really used successfully the techniques and strategies they taught. The ones today are actors that probably couldn’t have spelled real estate 12cmonths ago.

I have been an agent for almost a year now. I really want to focus on investors and also plan to become an investor myself. I have already started learning about investing.  I need a mentor(who is also an investor themselves)  that can guide me through working with investors. (Show me the ropes). Just someone I can trust and talk to throughout my journey. I'm really serious about this. I have long term goals and dreams. I have been trying to do everything on my own. But I could really used the help to make sure I am going in the right direction. I'm having a hard time finding someone willing to do this in my area.

Quote from @Cody L.:

Quote from @Theresa Harris:

Honestly this "Limiting the amount of money a landlord can charge for a security deposit, equal to two times the cost of monthly rent" is reasonable.  

 Why?   What in the constitution gives the government the right to interfere with what I can ask for as a deposit to let someone rent my home?

If I demand 100 months rent, that's my right.  And it's the right of a potential renter to say 'no'.   

Just because "over 2x sounds like it's too much" doesn't mean the government has the right to make a law about it.   And what happens when "Eh, 2x seems too high.  1x is fair".   It's not up to them to determine what's fair.  The only people who have a right to decide are the buyer and the seller. 

 Most people who rent aren't going to have that sort of money and while I don't know what rents are like in OR, I know in other places where I have investments (I'm in Canada) most places rent for over $1000 a month. Asking a person to come up with $2000+ as well as first month's rent is a lot.

Quote from @Theresa Harris:

You have someone lined up, let them do it.  The fact that your tenants had an airBNB operating out of the rental against the terms of the lease and your current PM didn't do anything doesn't say much.  When you found out, you should have told your PM to handle it-that is what you are paying them to do.  I can't imagine anything harder than a PM having the owner working with tenants and not keeping the PM in the loop. You've already been doing things for the eviction, I'd just keep doing it.

I've always kept my PM in the loop and had them communicate with the tenants for me the entire time.  I've never went behind them and try to talk to the tenant myself.  Maybe I didn't explain it right in my original post.... but bottom line, PM just wants their money and don't want to do the hard work. PM helped me with evictions before with tenants refusing to pay maintenance bill, but because this time they don't agree that tenant is breaking the lease, they won't help me this time. 

What would you do if in my position?  Lease agreements includes utilities with rent, tenants pay rent on time but using it as an STR, putting you in a negative every month, lease states "No Airbnb or VRBO"

I have a property that is own free & clear but am having trouble getting a loan do to high credit utilization & no extra $ to pay off to get credit score up for Traditional lenders . But if loaned the $ on free & clear tenant in place bldg I own ,was given then I can pay off high credit utilization & then score would go up & high dti would no longer exist because all debts will be paid & I will only have primary house loan & now investment property to pay for…

can someone please help me with this need loan asap !!

thank you in advance 

Honestly this "Limiting the amount of money a landlord can charge for a security deposit, equal to two times the cost of monthly rent" is reasonable.  

Hope I got your attention because the City of Eugene got mine! Phase II Rental Protections just went into place and we are seeing some big buzz in Facebook investing forums and on the local news. 

According to KVAL News, "What are the Phase II renter protections?

Phase II renter protections center on three main policies:

• -Limiting the amount of money a landlord can charge for a security deposit, equal to two times the cost of monthly rent.
• -Processing applications on a first come first serve basis.
• -Relocation assistance."

The impact to this is huge because now there is going to be a centralized database for all evictions filed, for cause or no cause. This data will be available to help them justify their need to overstep their legal authority and regulate rental property further. Also, with the passing of SB-611 at the state level, this creates a toxic mix of rental protections that should push a Mom&Pop landlord out of the business. 

The long term impact includes the following:

-Less compassionate landlords who are willing to be flexible with late payments, evictions, or delayed move outs

-Less supply of rental property due to single family rentals being liquidated and sold to buyer/owner occupiers 

-More competition from bigger REIT's (real estate investment trusts) and real estate holding corporations who can weather limited returns

-Less incentive for real estate developers to rehab and hold properties long term in the local area

-Less flexibility to keep rents affordable without falling behind and keeping up with market rents to appraise at exit 

-Less business in the investment property sector due to lack of supply, including realtor commissions, title and escrow fees, handymen and contractors, property inspection fees, appraiser fees, mortgage lender commissions, and bank refinancing profits 

-More headaches for property management companies having to navigate complex and controversial client demands on their property 

-Less qualified tenants using the first-come, first-serve basis for applications 

Now BEFORE EVERYONE thinks these laws are just horrible to invest here, I want to conclude with some of the major PROs of these laws:

-Less competition from entry-level investors, meaning more deals will be had by liquid and well financed investors looking to scale with the roadblocks in mind

-Higher valuation of rental property over the long term due to supply and demand constraints 

-More stability in the quality of management and landlord professionalism 

-More 1031 exchanges from older investors looking to move assets around more frequently to dump low performing properties 

-More incentive for real estate developers to only build large unit multifamily that will not have regulations for 15 years (from certificate of occupancy)

-More expectation from tenant that they will receive an increase each and every year (more implementation, means more frequency to experience)

As always there are two sides of the argument, but I firmly say that I can still be profitable and make millions of dollars here in Oregon, but with a little more caution and strategy. Pivoting is going to be key and value add projects with no-cause evictions is going to cost more, but will be worth it over the long term. 

Thoughts?

Dan Gandee