All Forum Posts by: Lance Nelson

@Jay Hinrichs thanks for the response, Jay. I see that you’re in Lake Oswego. Is “transaction based” something that you would consider offering? Or maybe you have a recommendation of someone that would?

Hi BP community,

I'm currently in my fourth year working as a physical therapist in Oregon, but have the Real Estate itch, mainly from my addiction to the BP podcast. I work full time, but am contemplating going down to part time to get my RE license. I'll use the license for my own RE investment to have access to the MLS, be able to access lock boxes, and to further my education. I'll also use it to offer part time help to friends, family and potential other home buyers as an agent. Does anybody else have experience or wisdom on getting your RE license and working part time? Thanks everyone!

@Greg Dickerson Thanks for the response. We've only put one offer in so far, but are likely making another offer in the morning. Making more offers is a good point! I think we'll likely start submitting more offers at numbers we think make sense. Thanks!

@Michael Reilman

Thanks for the response. My current agent is an investor, but it seems impossible to know if he'll take all the deals for himself. I'll just have to try to get a better feel for him.

@Tj Hines That's good advice. I just started making some list source lists. Thank you!

I'm a newbie real estate investor and have been analyzing properties in Portland, Oregon. I'm having trouble finding anything in a decent neighborhood that cash flows. My goal is to rent out my townhouse and purchase a 2-4 unit multi-family property on an FHA loan. I'm a physical therapist so I don't have all day to search for off market properties, though I have tossed around the idea of becoming an agent. My question is, how many of you bought your first multi-family deal off MLS compared to off-market deals and how did you find those deals? I don't want to buy a property just for the sake of buying a property or buy a property where the numbers only look good because it's a house hack. I have the money for a down payment. Any wisdom would be greatly appreciated.

@Jacob Sampson Thanks for the response. It definitely doesn't cash flow with those expenses. Unfortunately, what I'm finding is most of the properties in good locations don't even come close to cash flowing in my area with expenses like that. Maybe I need to find a way to find off market properties. 

@Tyler Gibson Thanks for the response! This would be a house hack. I'm trying to analyze it as if I were not living in the property to make sure I'm getting a good deal for the long term. As far as having cash for the next deal, I think ARV would be about $600k so my hope would be that I could refinance. When you increase value and refinance to a conventional do people typically take cash out and refinance at a higher mortgage amount? Wouldn't that make the numbers look less desirable since you'd likely have a higher mortgage payment?

So I found a property in a nice neighborhood in Portland, Oregon. This would be my first deal. Asking price is $475,000 and it's a 3BR home with a separate entry 2-3BR in law sweet downstairs. The place needs some work to get it ready for rental, I'm thinking about $30,000. I think the house would rent for about $2000-$2100 and the ADU would rent for about $1500-$1600. I would be using a 3.5% FHA with $16,625 down. Here are the numbers I've calculated.

Rental income $3600

Monthly expenses $3225 (5% vacancy, 5% Cap Ex, $100 repairs)

Cash Flow $345

Rehab $30,000

Total Investment $51,625

ROI 8.02

Cap Rate 6.71

Any thoughts on whether this would be a first good deal? Thanks in advance!

@Mathew Wray That's a good point, but this particular townhouse does not have an HOA. I guess it could be in the rules and regs somewhere else though. Thanks for the response.