All Forum Posts by: Kelly Asmus

When interest rates go up, of course the housing market is going to slow a bit - that's the intent. The housing market has been on fire and the price increases, the multiple offers and the terms some buyers are throwing out just to get a home - they are NOT sustainable. 

Slowing the market down a little gives us all a little breathing room. I do not expect prices to dip, appreciation will slow to a more normal rate but housing should remain steady for the near future because we still have a shortage of homes for sale. 

Foreclosures might be up because there was a moratorium on them during covid. They are still a miniscule amount in the market. If there were 2 and now there are 4 that is a huge percentage increase, but overall meaningless. So instead of looking at how much foreclosures are up by a percentage - look at the actual numbers. They are not anywhere near alarming stages. Most people have equity in their homes now, so can sell and avoid a foreclosure. 

Don't be alarmed by headlines. As an investor look beyond the headlines and do your research in your market. 

I wouldn't agree @Joel W. that Oregon is a bad place to invest. City of Portland may be a tough place to invest with moving policies if you no cause evict tenants but there are many other surrounding cities that are doing very well. 

The market is hot for real estate, which pushes many people out of the option of being able to buy so they will have to rent. There is a shortage of rentals in our market, which makes it easy to rent, raise rents and make a profit. Our market lost a lot of rentals over the last few years so those of us that have remained have raised rents and stayed in the game.

Yes, Oregon has rent control, but it's over 9% we can raise rents this year. I am very comfortable with that because I do a rent analysis each year and make sure I am charging Fair Market rents. My rental properties are doing very well and I reinvested this year and did some remodeling and raised the rent when my tenant moved out. Wrote off the remodel on my taxes and rerented the property quickly. 

The metro area is a mecca for ADU's, house hacking and other creative ways to add units to properties. I have many clients who only look at properties that have been sitting on the market - we look at many different strategies to make the property work. When the going gets tough - the tough get creative. Every investor is trying to find the easy markets when sometimes you have to think a little differently, look at projects through a different lense and be willing to try something new. I have clients turning a SF into a triplex and with HB2001 coming the flood gates will open for building extra units on most any lot in the area. It's an exciting time to be an investor here. The skies the limit.

Agree with @Anthony Vicino. Oregon has many programs to help property owners for energy savings. I'd check your state and local for similar programs. 

The black and white paint scheme is very on trend right now. I say go for it. 

The market inventory is tight for Portland, that will change. I tell all my clients - patience and perseverance right now. Keep looking and keep making offers that pencil for you. Be smart with your numbers. Don't overbid just to win. You win on the actual purchase making sense, so if you have to wait, do so. 

Being on these forums, talking to people and networking also brings deals. I have several clients who house hack and we exclusively target deals that have been on the market for more than 30 days. Right now, there is no need to target any property new to the market - that will change too. But that's the reality right now. 

Reach out if I can help you. 

Great story from Realtor magazine on the new hot spots for rentals. There are always opportunities, just look in the right places.

‘Feeder Cities’ Grow as Hot Spots for Renters | Realtor Magazine

Know the laws in your state regarding eviction before you make any move. Get the advice of an experienced real estate agent who handles these exact kind of properties to give you the scenarios - because there are many. You want a strategy and you want to be on the right side of the law, giving all applicable notices prior to doing anything. Selling to investors with tenants in place, is just one strategy, and it may not bring you the highest value in this ultra competitive market. It may be the easy button for you, but you may be able to evict, update, stage it and sell it higher on the open market. Consider all options before making a move.

I think it boils down to your volume. If you're doing enough business to absorb the fees/mls dues and you make the commissions when you buy/sell, then it makes sense. It's potentially another income stream off what volume you're already doing. If it interrupts and/or takes away from your primary business model then it makes sense to have an agent who takes this off your plate and handles this so you can focus on your prime money making activities. There are many pros and cons, but comes down to how you like to run your business. I am an agent and an investor so it saves me time that I can do everything for myself, but I'm also not doing a high volume flipping business that needs my constant attention.

Portland's population is still growing and we have a shortage of rentals, so landlords who are managing properties, taking care of them and working within the rules are doing well. Yes, City of Portland has enacted some non-landlord friendly policies the last couple of years but working within them, landlords are still being successful and profitable. Rents are up, way up, and state of Oregon allows us to raise rents 9% this year. They adjust it every year. I manage my own single family rentals and have had great success doing so. I keep in good communication with my tenants, do the correct paperwork with them, I maintain and update them regularly and I keep the rent at FMV. Happy to help you. Reach out.

The easiest way to kick off real estate investing is to owner occupy either a house hack or a multi-unit. Look for a duplex that you can live in one side and rent the other. The rent side offsets a lot of your mortgage, making your first purchase a little easier to swallow and you're only managing one unit and you're on site. Look for one that may need a little updating so you can add value to it by updating slowly. Give yourself a year to learn how to manage property, be the landlord, do the paperwork, etc. Then save up and buy another one, move into it, rinse and repeat. Moving into is allows you to get low down owner occupant financing when you buy it which puts you in the best position for success. Find a great agent, get prequalified, look for a neighborhood with steady rents/good values and make an offer. Use rentometer to determine good rents for the area and make sure the project pencils. 

Good luck.