All Forum Posts by: Kelvin Lee

Physical condition, location, rental income and tenancy laws etc. I think the physical condition looks great. The location could be a draw back like the hi-way next to it without side walk, unpaved road etc. Can't comment on the rental income without any data like NOI, expenses etc. Small units could be hard to survive with rent control and the ever changing tenancy laws that 100% work against the property owner.

Let me ask you these fundamental questions before going further. Do you plan on self-managing the rental? If you want to buy within City of Portland area, do you familiar with the ever changing tenancy laws and the rent control in Oregon State? How many years of experience you have on real estate rental business? What is your exist strategy, for instance, 1031? 

Screening Highlights

• City criteria would broaden approvals for people with criminal backgrounds.
• City to reduce income requirements from 3 times the rent to 2 times the rent.
• City requirement to provide individual assessments will increase cost and likely require legal opinions for denials.
• City to require a 3 day waiting period before anyone can apply once ads are live.

Deposit Highlights

• City to limit maximum deposit to 1.5 month's rent. Currently no cap.
• City to require landlords to accept deposit payments over up to 6 months. Currently paid in full at move-in.
• City to limit the term "normal wear and tear" which will substantially reduce what you can charge for at move-out.
• City to prohibit charges for cleaning at move-out.
• Forced depreciation for property damage. The rate would be 3.6% per annum over 27 years.
• Charges must include original receipts, depreciation schedules and photos, or are prohibited.
• Additional requirements will increase cost.

If passed, will you relocate your equity out of City of Portland. Or will you see this as an opportunity to raise higher rent to overcome these new ordinances. In general, how do you cope with this ever changing ordinances? 

http://www.balljanik.com/bio-detail/otto-angela-m

She is good but she is not cheap. I used her for chasing a contractor who owed me over $100k. There is no sure win as it depends on so many variables like the way the contract setup etc. Good Luck.

I personally have stopped looking for rehab project in City of Portland for a while due to tenant activate groups and constantly changing PDX ordinances. It only gets ugly with Tina Kotek onboard with rent control and killing non-cause eviction in the future. I would look for Washington State or at least to stay away from City of Portland for rehab if possible. Contact brokers for pocket listing is one of the options. Thing that I don't like going to Loopnet or any public platform like RLMS etc anymore is to avoid bidding war.  

There are lots of variables like location, strategy, financing, the deal by itself etc to answer your question. RE Portland has been appreciating though at different pace in different period of time. In 2018 til now, the appreciation has gone slow due to high vacancy rate and the interest rate has gone up a bit as well. The price is still high however has been stabilized. For a long term holder 10+ year I think it could be the moment to pull the trigger if the deal is right.  

Thanks for the feedback. I certainly will let the new PM handle it in a more liberal way. On the other hand, it's time to let go of this coward PM who only uses the owner shielding themselves for confrontation. 

When you thought the drug activities was about to slow down after beefing up the patrol, then it comes the wave of abandoned vehicles started showed up in the parking lot one after another. The tenant uses the parking lot for fixing the vehicle in a parking lot as if it were his auto shop. Then you started wondering who encourages behavior as such? The PM does for the reason to avoid confrontation. Not only that the PM have been keeping this behind me for a long time, they used me as a scapegoat when explaining the tow policy. 

The tenant said: "I don't hate you (PM), I hate the landlord and he discriminated me!"

What does it tell you when seeing this kind of respond?

I have contacted Portland Police K-9 unit and they will be stopping by the property for evaluation. It will be a good demonstration to the residents and at the same time pushing the drug tenant to the edge. Thanks for this great idea!  

I think the reward based would be an excellent idea. Thanks Mike.