All Forum Posts by: Cory Carlson

@Gordon Watt Check out the Portland website and do some digging there. Here is the site for ASTR permitting in Portland. See on the right for general inquiries and compliance help. https://www.portland.gov/bds/astr-permits

@Terrell Tullos I own an Investment Brokerage based out of Portland and Salem. I do work the whole state depending on the engagement type. Happy to chime in and discuss your goals. 

Great post - I have several inquiries for clients with the desire to own coastal STR's and just noticed the red tape is suffocating when I would dive into listed opportunities and feasibility with the municipalities.

Check out A.CRE; Adventures in CRE is a site with financial analysis/modeling, education opportunities and is a great resource for larger more astute property types and developments. *I have no affiliation.

Yes, rising interest rates are making it more difficult to invest than when they were in the sub 4% range. In my opinion, single family investments are not wise in the Portland area when seeking passive income. Debt destroys potential returns (investment rates around ~8% as of 09/23) unless you're under leveraged and we are seeing a supply and demand crunch, especially in the preferred surrounding suburban markets. On the other end of the coin to make a blanket statement saying to avoid SFH would be silly - there are single family + ADU/basement/etc scenario's that DO work. For example, a client of mine bought a 3 bed house, converting to 4 bed with a fully operational Airbnb near Nike/IBM that even with a high leverage position, will successfully subsidize his income. It was a low entry barrier "real estate investment" in a good area where with the right amount of leverage followed the fundamentals.

How much capital do you have? I have been gravitating my clients towards moderate leverage 2-30 unit buildings. The benefits of 5+ units is the cost of money is in the mid 6% range, versus the 1-4 unit space where its ~8%. Although I have noticed the 2-4 unit property type where sellers are stuck on a sales price are increasingly interested in creative financing - such as subject to/wraps or owner carrying. 

With that amount of capital I think an owner-occupied situation fits your criteria or some sort of value-add scenario where you can gather more capital. I like your goals to amass a portfolio but as mentioned before, to truly make After-tax cash flow of $10,000 a month would require one-few million dollars and a carefully balanced capital/equity position to reap the benefits of leverage and risk tolerance, especially if you are using your SDIRA. The SDIRA will have but no choice to be passive. IRA Advantage (*I have no affiliation) is based out of Portland and a great resource (website and youtube) on the limitations and mechanics behind using the IRA. There are situations where you can partner with it but there is a bit of red tape.

Matt and his wife are the owners of Portland Property Management and they have done a great job managing my clients single family and small apartment buildings. All of my clients have come back happy with their service. 

Welcome back to the party! Looks you have got your feet wet in the single family rental space. Its an interesting market out there while the investor maneuvers higher interest rates making it hard to see positive effects of debt on yield... especially while sellers are stuck in 2021/22. 

You're limiting the number of eyes on the property by taking this approach. A broker is going to get it on Loopnet/CoStar, MLS, Crexi etc and be able to track inquiries and leads and draw a buzz on the property. Maybe this would have worked in 2021 but those days are gone.

Brokers will not necessarily scoff at the idea of presenting you a buyer but your pool is going to be awfully low reaching out to the first dozen or so you can think of. 

Sell both, buy higher yielding multifamily property and hire a broker who knows how to time a multiple property exchange. Do not pay off the mortgage, leverage your money into a more neutral leverage investment with higher yields AND debt. Single family properties underperform in our market if they are properly underwritten.