All Forum Posts by: Darin Knight

I have a renal in Portland.  Last year I spent $18K on exterior renovations.  Roof, siding (including asbestos removal) paint.  The tenant has been there for 13 years.  My property manager went big, with a $200 increase to $1175.  We're still probably 15% below market.  I have easily another 10K interior renovations, but the tenant has never been late.  It's a balance.  The 20% increase the tenant didn't blink, just accepted.  Look at your market and assess your situation.  I like to be loyal to my tenants, but we are in this for a profit.   I'm ok waiting for a bit, but being slightly below market ensures tenant loyalty, but you've got to be making money long term.  I've been able to achieve that through appreciation.  I dread the turnover and expense, but know I'll be ahead of the game on paper long term.  I've not had luck with the $50 increase every six moths.  

Umbrella policy, car insurance those will be separate, you'll pay your insurance agent monthly or bi annually.  Lender will pay your taxes and homeowners insurance out of escrow, which becomes part of your mortgage payment.

@Mimi Essie,  I don't know the rules as I'm new and I'm not an agent, I have no skin in the game, but given your post, I would search for the property below.  Triplex at $775K.  It's the type of location with walk-ability that would work for you.

2349 NW Hoyt St, Portland, OR 97210

I've been looking in Vancouver WA as there is nothing in the $300K price range that I'm looking for.  Not sure there is anything with walk-ability in PDX under $500K.

@Mimi Essie, you sound like you want a duplex in NW PDX around 23rd street.  Rents have been doing quite well, and vacancies very short as you'll have a line of people waiting to rent.  Problem is, I don't think your $500K budget will get you what you want.   Conversely, you could have the nicest duplex in downtown Vancouver WA for under $500K.  My interpretation of your post is that you want a retirement home.  Don't beat yourself up on the analysis or the profitability.  Find the location you love first, then secure the deal second.  

Are you self managing your properties? If so, every time you step foot on the property for maintenance or inspection you lose that personal asset protection you built with an LLC. You can be sued as the property manager.

Thank you for the thoughtful replies.  Clearly there are many ways to play the game and win.  The one I'm struggling with is my relatively attractive W2.  My signature on BiggerPockets says I'm a Real Estate Investor, but I'm really a Corporate Goon.   I don't see a bridge between W2 to full time real estate investor until my residence and units are paid off.  Sounds like a slow and boring strategy, but I'm just outside of 10 years away.  My pockets are big and getting bigger.  However, I'm struggling to articulate if I should modify my strategy or stay the course.   For now I'll continue reading the forum, but if anyone can make sense of this post, please let me know.

Clever name, clever logo ... but what does it mean?  While I'm new here, I'm getting the impression that the community is focused on property acquisition / flip, cash flow, leverage and repeat.   I'm not seeing a ton of representation of ideas around net worth, and buy and hold investing. 

When I think bigger pockets, it's not $200 positive cash flow, its the 6 figure equity in my rentals.

17 years working with property management companies.  1 exactly as @SueKelly describes, their entire profit model was based upon charging huge fees every month on minor and unnecessary maintenance expenses.  I got out of that geography and removed myself from that company.  Next is my number 1 reason for still being in real estate.  8% and they know me well enough to not spend over my comfort level without a discussion.  As I've referred several owners to them they have gone so far to act as general contractor on a major rehab and offer design consultation.  We get along quite well and rarely have words regarding unexcused expenses.   The primary reason for my response is my most recent property management relationship.  10% yes, but it took a few months to set expectations.  Expenses haven't been a major concern with this one, but I finally had to tell her Merry Christmas, last October.  I said I didn't want to hear from her unless it was an emergency.  She was WAY over communicating.  Thus far my approach has worked.  Money comes in the 15th of every month and I haven't heard from her but once to tell me her assistant had moved on.   Set expectations up front, watch expenses and property management is the way to go.  It's not only piece of mind and a layer of liability protection, but I've seen them getting higher rents in my area than I would have gotten myself on craigslist.

9 pages on an 6 month old thread, forgive me if this is repetitive.    Anyone looking at 401k loans?  That's what I did for down-payment on my last unit.  4.25% at 5 years, paying myself back each month while still making contributions to employer match.  Curious how that will be received here.  My 401K was getting larger than I am comfortable with in equities.  This allowed a very simple solution that I will most likely repeat every 5 years.

Darin

I miss out on purchasing several properties that have tripled in value in 15 years.  I would have leveraged more when I was younger if I had the opportunity to do it again.   Go big young before you have other obligations.

Darin