All Forum Posts by: Paige Kelsey

Hi Alex, well- I did the same thing. I invested in Dayton Ohio. Why Dayton, well ...........the numbers Alex!! I actually went out to see the homes first. Turn key rentals met the management team and all seemed great. Most of the rentals were section 8 so  as an example I picked up a sfh for 25k and it rented out for 700 a month. All was well and good until the management fell apart and I went too fast. I picked up 13 doors without giving myself time with the management. Soo accounting was off, checks were late. He didnt evict in a timely way and suddenly my profit slipped into a loss on some of the units. We as an example, evicted a tenant. The management company left the unit unlocked and was not even sure the tenant had left until 3 days later. The fact is that tenants left it a mess. But... as a former flipper I had an idea that would cost maaaayyyybbbee 2k to get it back rent ready. The management company wanted 13k. Needless to say, I switched to a new management company now and all is well in the world. Bottom line is that it is better to go slow than to go fast especially if you are not from wherever it is that you decide to invest.  My thinking for Dayton is shoot even if I really mess this up, I was only out less than 20k per door. In contrast if I miss the numbers here in Vancouver, my initial investment is going to be at least 10x what I paid for a Dayton home.   Hope this helps!

All the best and welcome to BP!

Paige 

Let me also ad that just because something is on costar or loopnet it DOES not mean you have great numbers. Also, are you serious??? How is it possible that you can take the most awful photos sometimes- (and if there are three you would be lucky) and yet..................commercial is this expensive. How about we get commercial brokers out of the 1950's and actually have something that could be searchable for all consumers!!  Ughhh!! Soo frusterating and .........all of that to say, I am a commercial broker!!

Chris Mason- I do think it is relevant to commercial though if we are talking mult fam in these areas and in the article it talks about  significant advantages to builder and developers in "Opportunity Zones" and these zones........... are located right next to huge developments soo for us here it would be next to a 1.5 billion dollar waterfront project or Detroit  chose next to the new headquarters for Amazon. I THINK?????????? those going commercial could get a huge boost from this and it will be interesting to see how it all plays out.It does look like they are intentionally leaving parameters for this break as suuuppperrrr broad.

Hi Everyone,

I see that there are Opportunity Zones and tax incentives for investors as part of the Tax Law that was passed in December. Basically each state had to designate 25% as an opportunity zone in a state to attract new money into areas. However, some of the areas that states have designated are areas like Vancouver WA. According to what I think this is saying I believe it is pretty much like a 1031 exchange. I would love to hear your thoughts on this new tax law and the implications for investors.

All the best!

Paige 

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https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-04-23%2Fnew-tax-break-for-poor-neighborhoods-may-benefit-luxury-builders&data=02%7C01%7C%7C9fe98d94544b4ff9ca2c08d5a91b3ed8%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C636600856837433664&sdata=F%2BuQ%2B7BNcW3DihBSZZglOMJtpYNpiypea299jqu4rlQ%3D&reserved=0

There is always a great deal of talk around residential but let's talk Commercial. I would love to have an opportunity to connect with you all. Tennatively I am thinking of Beaches for next month. Beaches is close for the PDX investors as in ....... right across the 1-5 Bridge. Love to meet you all and connect in person. 

See if the seller will take a second on the property. Sooo go for 75% loan to value and ask the seller to take a second on the rest..................ummm even if you pay more for the property you could potentially be in on Brandon's no and low money down

I think your expenses are too low. Insurance, taxes  utilties??? is this triple net?.... probably not Also getting that commercial loan is not gonna be cheap . That would be about 50 to 60k down and............You would need to pay that mortgage also.

COSTAR

I look at net absorption which is the rate that office spaces are filled over what they were vacated at.  We have good net absorption rates. cheaper price per sq ft than pdx and in a ton of areas better caps on sales. Yes, there is a bunch of new office spaces coming in to the waterfront but I believe the new construction will allow for all sorts of growth and huge opportunities downtown.  As an investor, I personally like how Vancouver looks way better than Portland.  All of this and also pretty exciting that at almost every chamber of commerce breakfast you have hundreds of local owners. It is a strong community and truly something to watch in the next years. - I also look to local news ie.........There had been talk of not allowing Portland residents to not pay taxes for things here in Vancouver. With Portland Residents making up about 30% of sales, this would kill our business owners. No worries- disaster averted on that front. Hope this answers a little bit Joe Mercer   

Helllooow CAP rate chasers! I am writing today as I have too have made this mistake! I bought a " great deal, " but did I? The fact is that I had failed to really look at the market trends for the city. When people talked about due diligence I focused on the property and not the outside factors that would effect that property. When leases dried up and I didn't sell, would I be able to rent? Mistakes were made and those mistakes added up to thousands for my husband and I. Fast forward to now, I am a broker in Vancouver, Washington. Portland and Vancouver, Washington are just miles apart but trends from one city to another or even one neighborhood to another can vastly effect your bottom line. Sure, people look at a 1.5 billion dollar project on the Vancouver waterfront but what do you really know? The fact is that, there are so many other factors to consider. How strong is the Chamber of Commerce for example? Here in Vancouver, there was a 10 million dollar short fall for the police.City council had proposed an additional tax on businesses which the Chamber was then able to negotiate and help the city find the money in different ways having a lesser effect on businesses. Things like this will / could have a long term effect on businesses being able to afford your rents. I guess what I am saying here is if you are not from an area, expand what due diligence is for you to the larger picture. If there is one time to go local, this would be the time. CAP rates mean nothing if you don't have a bigger picture of what is happening in the area and in the market for what you are buying. Hopefully, we can all learn from one another's mistakes, this was a take away from me for sure on one of my own. Love to hear what else you look for other than just the numbers on a deal.

All the best!

Paige  Kelsey

KW Commercial