All Forum Posts by: Jeremiah B.

Wow - that's amazing!

If you don't mind my asking - how are they financed? What capital have you invested?

Jennifer Blume Welcome Aboard! The site is a great resource, and the people on (including those posting on this thread) are freaking awesome.

And Brandon Turner - I'm eager to learn more about the PDX Meetup (even if my short-term goal is out-of-state).

I'm in a similar boat, also from my former primary.

The lease-to-own option seems like a smart one, but my personal view is that if you can keep it - keep it. This is a big if, and probably means that you're negative cash flow each month for a very long time, and should also increase your rainy-day funds. So, to keep it, you probably need some assets behind ya, and there's probably nothing wrong with the lease option mentioned above.

But, if you can keep it, I think keeping it makes the most sense for your net worth. Leverage is a powerful tool, and being slightly underwater - you have leverage in spades. For example, if you are 99% leveraged today and the house increases in value 1% per year, your returns from appreciation alone are crazy (~100% year 1, 50% year 2, 33% year 3, 25% year 4, etc.); this excludes principle buy-down, tax benefits, etc.

Jason Tinder

Wow - talk about a small world... I'm 32, live in Portland, and looking to invest out-of-state with my next purchase (~ 6 months).

Portland is not a great, or even good market - but it can make sense and can even cashflow. Right now, we own 3 SFR in Portland, one is cashflowing , one is rented below market (family member) but will cashflow at market. We lose ~200/month on the third (our old primary) which we more-than make-up for in other ways (taxes, loan payoff, appreciation).

Mehran Kamari Thx for the book referral - I'll check that out.

I would say that her starting at 100k is good news. If you can, show how your offer is equal to 100k.

eg - 100k is a reasonable value. But, if you listed, there would be a 6% fee, 1k in closing, and 5k in repairs. So, I want to get close to your number, but I want to be sure that we're accounting for all of those fees that you would be saving.

Love the podcasts!!!

I listen on my commute (through my android which took some work).

1-hour is actually short for me. I always find myself wanting more time with the guests/subject, soi would personally prefer a longer length.

I didn't go this route, but a lot of people I respect are talking about getting their license early. Kills several birds with one stone - including getting your foot in the door.

I'll admit that I'm miles out of my element on this, but are you really going to be able to get a loan that is 75% of ARV when you have put no money in??? That seems off to me.

This is a personal preference thing, and some people far more savvy than I would and have disagreed above. So what do I know...

But here goes:

To me - being cash-poor is a red flag. A 2-year loan at 12% is a red flag. And a debt to the IRS is a red flag. And frankly, relying on past appreciation to solve current problems is a yellow-ish flag.

To me, the worst thing that an investment can do is cost you financial security, and it feels like you're potentially in danger of that happening.

So, if I'm in your shoes, this is a no-briner. I'm taking a step back and selling a house (option A). This would get rid of all of those red flags, and put you in a position to grow in a more stable way.

Ian Crane

I'm just south of you in beaverton. Congrats on what sounds like a good first deal - I would love to hear the specifics of it if you are willing to share.