All Forum Posts by: Eric James

@Nicholas L. Sure thing!

It's a 6/4/2 duplex (3/2/1 per unit) built-in 2003. It's in great condition and in a great area with very high rental demand. I would be renting both units at $1,650 for a total of $3,300 a month. Tenants pay all utilities, lawn care, etc. I would be putting around $30,000 of initial CapEx for roof replacement, AC replacement, new water heaters, and paint (they're all in working conditions but overdue for a change). Here is my break down:

$380K with 20% down (will try to negotiate down to $370K for CapEx)

Rent: $3,300

Total Expenses: $2,826

- $1,847 Mortgage (6.125% DSCR Rate)

- $400 Taxes 

- $150 Home Insurance 

- $231 (7% repair and maintenance due to initial CapEx investment)

- $99 (3% vacancy high rental demand)

- $99 (3% CapEx due to initial CapEx investment)

Cash Flow: $473/mo

CoC ROI: 4.86%

Thoughts? @Eric James I know the CoC return is quite low but that is because I'm a 22 year old with no job, so my interest rate is quite high. If it were my mom investing at a 4% rate, she would have a 9% CoC return. I'm also sacrificing cash flow for great appreciation, and a newer peroperty. I'm already invested in the stock market, now I want to diversify to real estate, plus I have a passion for it. I also want to get a short term rental which will be my high cash flowing asset. Nonetheless, my main goal is to build generational wealth! Eric, if you have better all around investments or advice, I would love to connect!

 WOW  4.9 cent a killowat that is really cheap.  west coast is 12 cents and up.. hawaii 30 cents.  thats why in Oregon where it goes down to 4 cents at 10 pm gives this state a big advantage for EV.  For Tesla you have 3 options.. a regular 12 volt plug in takes forever .. then you can get one that is the same voltage as a dryer 30 amps or so.. cost less than 500.00  my electrician who does all our new builds put mine in for 150 bucks. and i put them in all my new builds for 200.00 each , you can upgrade to telsas home fast charger and I think that will be an additional 300 to 500.00 have not priced it.. but for me I dont need it plug in start at 10pm car is charged by 3am and if its really low by 5 am.   Supercharger depending on which vintage 15 to 45 minutes when your on the highway.. which for us by the time we drive 250 miles we need a big potty break anyway so its just for us to take a few extra minutes compared to a petrol station fill up which is usually 15 minutes or so right?  And we dont worry about getting Jacked up by some bad guys like at filing stations  :)  

@Eric James foegive my ignorance. I'm not sure what Vanilla SFR is. Can you enlighten?

Thanks

No offense meant to @Jay Hinrichs or @Nathan Gesner but when someone comes onto these forums asking for advice I think it's more helpful for us to be providing them with useful information on the market and fewer personal impressions about crime and homelessness. Those are anecdotal impressions of Portland, but the actual reality is that Portland and the surrounding metro is an incredibly strong rental market with the bonus of long-term appreciation. I've owned rentals in Portland and Detroit, Michigan (another supposedly tough market) for almost 10 years in addition to owning a property management company in Portland. We manage a mix of mid to high-end SFHs, 2-4 plexes, and apartment complexes up to 20 units. We've seen on-time rent payments between 95-98% over the past 2 years, high-demand (we had an apartment go up last week with 25 applications and a SFH the week before with 22), and overall a great tenant base. In addition, the City Council has just announced that they're rolling back the most onerous provision of the FAIR Ordinances (removing the requirement for owners to create depreciation schedules).

I work with a number of first-time investors and getting started is all about with a great agent - like @Brad Hammond - and zeroing in on micro-market you want to focus on. Get organized, have your financing locked-in, and learn how to evaluate potential deals based on your preferred outcomes. Ignore all of the macro noise because you're really just looking for ONE DEAL. If you have flexibility on where you want to invest you might decide Portland isn't the best fit, but I hear very little doom & gloom from those of us that work in the market day-in, day-out.