All Forum Posts by: Account Closed

I spoke with the city last year. SFR is grandfathered in, but if the whole place burns down, for example, I can't build another SFR. I can only rebuild a SFR if 75% or less burns down.

I'm not really interested in developing an industrial lot; when I develop it will most likely be small multifamily.  But there has been appreciation since the property was first placed under contract, so I was thinking I could just turn around and resell it for a profit--maybe doing some light cosmetic work on the inside (e.g. remove fake wood paneling, paint, repair broken window)--since there are a ton of first time homebuyers who might jump at any habitable house for $200k, regardless of zoning.  

Maybe highest and best use isn't residential, but if I can get more for flipping a house than I can for an industrial zoned lot, then that's one route. What I'm uncertain about is whether the industrial zoning would scare residential buyers away for financing or insurance reasons. Based on what I read in RE school, industrial zoned properties get the lowest LTV loans. Plus though the house is currently inhabited, it's in rough shape.

One option, @Randy Johnston, is to do what you've done with empty lots, which is to get it all permitted for an industrial use and then sell it to a developer so they can be ready to go at the time of sale.  I could rent out the house in the meantime (there's been a tenant in there this whole time @Theresa W.).

@Dave Foster thanks for the contract assigning tip.  I hadn't thought of that.  The contract has an expiration date so I'm guessing that would make it less attractive to a potential buyer/assignee?

One final thought is, with legal marijuana in Oregon, maybe there'd be a demand for a commercial tenant in the house if it's used as a dispensary?  As @Scott Meyers pointed out, the driveway would need an overhaul (which would cost $$ as currently there's no place to expand without grading).

@Rob S. was that the dilapidated plex that smelled funny built 1940's near NE 17th? If so, I also put in an offer when it was a First Look owner-occupied listing. The listing agent was even more curt when she rejected my offer, which was below asking. But we've dealt with her before--she mostly lists HUD homes. I called her last year about a triplex in NE and she hung up on me when I asked whether the tenant wanted to stay, lol.  I guess in this market, a LA can do/say whatever she wants and still come out ahead.

Dear Portland people, 

I've been in contact for over a year on a SFR zoned industrial in 97211. Originally there were some boundary issues that I wanted investigated, and the surveyor found encroachment issues (between properties in different zones) so the city had to get involved yadda yadda and it's dragged on.

I can back out if I don't like the new boundary they come up with. If they ever finish. 

Anyway, my partner is starting to have second thoughts because of the industrial zoning. It's a 1000sf (not including basement) house with lots of deferred maintenance on 1/4 acre. It's also on a busy 2 lane road (far back from the road, but still...) and you have to back out of the driveway onto the road. 

Also disclosure said septic but now the LA is throwing around the word "cesspool" in her emails, so it could be a cesspool instead of septic. 

Views from back yard are amazing. Lot is huge. Unfinished daylight basement could be finished. Original built-ins and fir floors from 1920's. Foundation is surprisingly solid.

Repairs/replacements needed include siding, roof, windows, electrical, sewer hookup, water lines, and all cosmetics. 

Contract price: $140k. Market rent is about $1300, maybe more with some light rehab.

I personally think it could even just have some light cosmetic work done and leave major rehab to the next buyer, maybe do a 1031 exchange, and flip for $200k.  My partner (not *business* partner) thinks that the industrial zoning makes it not a good deal. He's afraid buyers would have a hard time financing. He is also a residential RE broker.

My concern is if it's really a cesspool and not just a septic. But I guess it needs a sewer hookup anyway...

Do Portland folks think there  are too many moving parts for that price? I feel like anything that price, regardless of condition or zoning, is a good deal, especially west of 42nd. The land might be worth that alone.

Anyone have experience with industrial zoning for a SFR?

@Holly Jackson I don't charge pet rent.  Move to Portland instead!  

But in all seriousness, the points you raised about your dog in your initial post were compelling.  I wonder if you had quotes from other people who know the dog along with their phone numbers as references (essentially saying the same thing about your doggie as you did), if that would be even more convincing than you simply listing her positive qualities?  

When I was a renter (in California and NYC and Oregon), I put together a "pet resume" with a photo, vaccination records, vet contact info, and references from previous landlords.  I've also brought my dogs TO the landlord so the landlord didn't have to displace herself but could still meet the dogs (I've successfully rented houses with 2 cats and a lab/heeler mix and a pit bull, so 4 pets).  

Renter's insurance is a requirement for my tenants, whether they have pets or not, but especially if they have pets.  I don't want to be liable if someone's dog bites someone on my property.  

I do ask for a $200/pet extra refundable deposit.  I don't ask for "pet rent" because I just advertise that pets are allowed and price my units accordingly.  

You'll probably have much better luck when dealing with the landlords directly, rather than property managers.  Also, at least in Portland, most of the big new apartment complexes going up allow pets under 25 pounds.  They tend to be more expensive than a 30 year old unit from a mom and pop landlord, but you also get all the amenities that go with the big apartment complex.  

When you talk with a landlord in person, I suggest already having your pet resume on hand, and maybe even having your dog in the car, in case the landlord would consider your pet after seeing the resume and meeting you, but wants to meet the pet.  This strategy works best if there is a group showing rather than the landlord setting up a specific time to meet with you and then finding out that you have a dog.  

For the few rentals that advertise pets are OK, set up notices on craigslist and other sites to text you right away as soon as those ads come online.  Then *CALL* them right away, talk about your qualifications as a renter (including mentioning that you're a former homeowner and take care of rentals as if they're your own home, and that you have several months' rent already saved, but don't bother mentioning your dog if the ad says pets OK), and at the showing, if you like the place, offer to put down both all the deposits AND first/last at that time to show your commitment.  If you would pay more per month for that particular rental, e.g. they're asking $1200 but you'd pay $1300 and think it's worth $1300, you could offer to pay that amount instead.  I have heard of renters in tight markets offering to pay more for rent than is advertised.  

I wouldn't personally offer to pay a year's worth of rent all upfront, because that would raise red flags with me as the landlord.  

Hope this helps.  If you move to Portland, get in touch!  :)

@Russell Brazil you're right; I don't know your market. Here in Portland some realtors are afraid of solar because they don't know whether leased panels could make a deal not happen. 

I'm sorry to have questioned your motivations. I feel strongly that renewable energy is the key to our continued success and prosperity as a species, so it's true that I react strongly when people make statements that might dissuade other people from moving in that direction, especially if those statements may not be backed up by solid research. 

What I can't completely understand is, how would any realtor know whether solar decreases home values, unless they had two parallel universes in which to test out their hypothesis?  Homes sell at different prices for all sorts of reasons.

Thanks for the invitation, @Mike Nuss! Happy to share what I know. 

Have you ever been to Vita Café? Yum. http://www.vita-cafe.com/ 

Solar panels that belong to the house outright--ie the homeowner purchased them (vs lease or PPA)--do indeed increase home values, @Russell Brazil. Realtors don't like solar, however, because transferring a PPA or lease takes an extra day or two during the contract negotiations, thus postponing the realtors' commission checks. 

When receiving information, @Eli Winkelman, always consider the source and their particular motivations.

Visiting the pet is a very good idea @Account Closed!

@Account Closed's post is that the tenant didn't know that pets weren't allowed until after she saw it on the application.  Maybe she didn't read the whole ad, or maybe she just forgot (you read a lot of rental listings when looking for an apartment), but from the way Chris wrote his post, it sounds like the prospective tenant genuinely didn't know there were no pets allowed.  

She wasn't lying; she was telling the truth.  That's why it's worth refunding any app fee, if she even got to that point to begin with.  

As for cats damaging the property, I have 2 cats and they haven't damaged anything.  When I bought this place though, the kids who lived here had drawn on the walls with crayons, spilled nail polish on the hardwood floors, and dropped small toys down the tub drain.  

So let's be honest: most kids do more damage than most pets.  

@Account Closed that would only encourage more people to lie.  Better to reward them for being upfront by refunding the app fee, rather than for them to lie to every landlord they encounter after that.  

OR, the OP might decide to work with the tenant (since she was honest, after all), to accept the cat, with whatever given parameters they agreed on, like pet rent or increased security deposit.  

So many tenants will lie about having pets (because it's hard to find a landlord who will accept them), that when you find one who is honest, they may be worth keeping because they could end up being a great tenant.