All Forum Posts by: Grayson Graham

I will be gone on vacation so unfortunately i wouldn't be able to make it any day this week. Am always looking forward to our meetups though, see you all in August!

Bigger Pockets is amazing! Thanks everyone for the feedback, iv learned a lot from the discussion. I am going to pursue the AirBnB rout now that I am more confident that it wont totally mess up my live in flip.

Im currently 6 months into a live in flip and Im having trouble making the mortgage payments on the home with my income alone. We get a bit of tourism in Bend Oregon and Im in a nice part of town across from a big park, so I think there may be a good opportunity to do vacation rentals. Although the CC&Rs of the neighborhood prohibit short term rentals, there is an exemption for renting out individual rooms. So, I am considering converting my guest bedroom to an AirBnB with the guests sharing my personal living room and kitchen.

My concern is that if I rent out the guest bedroom then I wont be able to claim the homeowners capitol gains exemption when I sell in approximately 18 months. I imagine that I may only get a partial exemption similar to if I were living in half of a duplex, is this the case? Any advice would be appreciated, thank you for taking the time to help!

I agree with the other people who have commented that new construction probably not the best way to start out. Construction costs are through the roof right now, you need special financing for new construction that can be difficult and expensive, and your taking on a certain amount of risk of delays and bureaucratic hiccups. That said, i believe that it can still be a good investment strategy and iv bet on it myself by building two new single family homes in the last year that I now manage as rentals. It is possible to do, here are some thoughts.

All of the reasons stated why building new construction rentals are a risky investment, are also the reasons that you are creating value by doing so. Yes it is risky, but returns are based on risk so if you can pull it off efficiently then you can create value by buying the land, financing the construction, and fitting all the pieces together. If done correctly, you should be able to build a new home for less than it would cost to buy a new home from someone else because you are the one taking on the risk. Mitigating this risk is the hard part.

Still, you have to find the right deal to make it work and thats not easy. In my specific case, I had a bit of 1031 money that had to be invested so I was able to put over 30% down on each house. I also built them within an upcoming neighborhood that isnt in the best shape now but has tuns of new construction and a city park being planned, so there is good potential for appreciation. Last but not least I hired a professional general contractor to manage the construction of the homes, he scheduled the sub contractors and navigated the permitting process in exchange for a $20k fee per home.

Again, new construction isn't the best place to start. But if you do pursue this, start by building a team that has experience in this area such as an experience general contractor and a lender that specializes in construction finance. Good luck.

Great meetup last night!

@Karen Margrave

@Karen Margrave We got some feedback that the first Tuesday of the month doesn't work well because it conflicts with another investor meetup called the Bend Investor Networking Group (BING). Maybe we can do the second Tuesday or jump back to the first Thursday?

Welcome to Bend! My wife and I moved here about 9 month ago to start a career in real estate. That was the best decision of our lives, we love living here and Im sure you guys will too! Iv recently picked up rock climbing and have been going to the Bend Rock Gym, do you guys want go climb together sometime?

In regards to your goals, maybe i can help! I work for a hard money lender (Tennant Developments) that specializes in construction finance. If you need help financing your flips or spec homes then we should talk. For getting your business accounts established, I recommend First Interstate. They recently bought Cascades so they have a large presence in Bend. Their business accounts are pretty standard, but they are some of the best for credit lines and opening business accounts with them helped me get favorable rates. I bank with Alan at the Century location. 

Last but not least, you guys should come to our monthly BP meetup. On the first Thursday of every month we meet at Level 2 in the Old Mill around 530pm. Iv been to 3 or 4 now and they are great, just a small group of local RE professionals getting together to talk shop over beers. That would be a great place for you to find team members. Keep an eye out in the Oregon forum there is always a post in there leading up to the meetup.

- Grayson

The past Bend meetups have been great, I'm looking forward to this one!

Hi Daniel,

COBA is a great resource for finding subcontractors, take a look at their directory page here: https://www.coba.org/directory/

Hope this helps, good luck with your rehab!

See you all tomorrow! :)

@Eric Bilderback It looks like i should have just kept my mouth shut as you had everything on track haha thank you for taking care of it. Its reassuring to know that the capacity limit isnt as strict as I had thought. I like McMinamins as a venue!

Eric Shaver, Iv added you to the mailing list. You've got me thinking though, it would be nice if we had a simple web form to sign up for email alerts, i will work on putting something like that together when i have time.