All Forum Posts by: Larry Lund

Larry Lund has started 1 posts and replied 10 times.

Originally posted by "juzamjedi":

Yes that's good appreciation. In that case I would sell the one you already have for 1.5 times what you paid for it. If you've held for 3 years and you have 14-15% appreciation then you should be able to get that much out of it. If that's really how much you can get then I'd say your strategy to buy and hold in your area will work great!

Oh, one quick follow up if I didn't already mention it. I do have a rental in Hillsboro that I have owned about 3 years and owe about $140,000 on get $1,025 a month on and have a buyer for it we hammered out a price of $205,000 (Appraised value is the one for $210,000) I plan to do a 1031 and buy a duplex as soon as I find one (then I'll write the paperwork) I like with the proceeds

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Originally posted by "juzamjedi":

Thanks. yea I kind of thought maybe and yes that is what is going on in this area and has for some time. Just goes to show a shoe doesn't fit all sizes :)

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Originally posted by "juzamjedi":

Originally posted by "larrylund":

No where near the 1% rule. I would love to be able to get that kind of rent but just don't see it here.

I just buy and hold, what is one ot do :)

What are appreciation rates in your area? If the appreciation is outstanding then you might be able to sacrifice cash flow for price. If appreciation is moderate or low then those are terrible prices!

Look, appraisals don't mean squat when I'm buying a RENTAL property. Appraisals matter if I'm going to REHAB, but if I want to rent the property then just tell me what the rent is and I'LL decide what the price should be.

Hi juzamjedi, in this area, it has been averaging about 14-15%

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Originally posted by "james":

Here in florida with the cost of home owners insurance and property taxes, its hard to get that 1%.

I live in the Portland Oregon area. here is what I get

$1,025 Mo, Appraised value - $210,000

$1,080 Mo, Appraised Value - $215,000

$1,350 Mo, Appraised value - $360,000

$1,800 Mo, Appraised value - $360,000

No where near the 1% rule. I would love to be able to get that kind of rent but just don't see it here.

I just buy and hold, what is one ot do :)

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Originally posted by "Ohio Realtor":

Larry watch your numbers that is figuring the payment on a 1% pay option ARM you are building negative equity and after about 4 years with the down payment you mentioned your payment just roughly will triple because you will be at the 115% threshold. Try to figure your debt servive on a 30 year amortization and see what it get gets you I am sure it is negative. Watch option arms on a buy and hold and make at least the interest payment. The reduced option is nice if you run into trouble with vacancy or repairs but don't count on making the lowest payment forever.

Thanks OR. Well isn't that a kick in the pants :( my goal was to buy and hold for 3-7 years then sell. The appreciation has been very good here in Portland Oregon over the last few years. I checked yesterday and even this time of year over the last 12 months it still worked out to 14.4% in that area. Oh, boy!

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Originally posted by "juzamjedi":

I don't know why Harvard is the gold standard instead of IUB... oh, never mind. :oops:

r2d246, you are a great real-world example of creating value. The prior landlord didn't maintain the property... you made some improvements and now your net income is up. Nice!

It's even easier than that. If you look at the property analysis report you just need to find the "debt coverage ratio". If it's greater than 1 then you will have enough money for debt payments. Let the tool do the heavy lifting for you... how simple is that?!? :D

My "debt coverage ratio" shows 5.29 1st year and 5th year it shows 6.86 on a duplex I have in Escrow. This is way above the 1 you mentioned. Does this sound right to you? I do plan to keep the property a few years

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Originally posted by "noobdog1":

well if you're putting 69k down on this property, that changes quite a bit.

putting down 40% on a property will help.

k, TNX noobdog. Lot I have to learn in investing I can see. I just now got a call from one of my tenants and she in interested in this duplex since it is $130 a month less then she is paying now. So now I'm thinking ok, now what? I owe $140,000 on the home, market value is $215,000 but there is a pre-pay if I sell and re-invest. I'm wondering if it would be worth selling and re-investing or just keep it for awhile.

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Originally posted by "Ohio Realtor":

Larry may have the objective that I have in selecting proprties. My stratagy is to buy and hold. The last property that I bought I paid 95% of list price for. The previous owner was paying 2000.00 a year to much for insurance so that brought their cap rate down. Purchase price was 162,000.00 nets right around 1000.00 per month after debt service. Looking at another one in the same area about 2 blocks away. The owner lives 45 miles away from the property and self manages.

The 30% rule works great on rehabs but on income producing property you need to look at cap rate, vacancy rate for the area, what you can do to increase income on the property, and if there are any deferred maintenance issues.

Hi, yes I do not plan to sell it right away. Buy and hold is what I ma doing the appreciation has been great here for the last few years. I just checked on the RMLS and over the last year in the area that I bought in, with duplexes similar features to mine the sold price was anywhere from full price to $15,000 less then asking. There were 19 sold comps. about half sold full price. there was one listed for $299,900 that sold for $250,000 but only that one. I won't be living in either unit. The tenants pay for everything but water and sewer which by records runs low of $74 to a high of $179 The loan I got was a 1% option arm and payment with PITI will be about $1270 Once side is currently rented for $850 but I think I can rent the vacant unit for $950. I figure to sell in 3-7 years. I can see I got to ask a whole lot of questions if"m I'm going to get this stuff down :(

Just as a side note. My personal home I had built 3 years ago for $258,000 I just did a refi and value came to $485,000 I borrowed $110,000 and using $69,000 of that as the down on this duplex. I hope with one of the subdivisions I'm parter on to have my personal home paid off in a couple of years.

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Originally posted by "splinterlfe":

Originally posted by "noobdog1":

personally, if i'm single and/or married with no kids and i have an income that pays the bills, the following strategy sounds like a very good one.

1. buy a property in an appreciating area to live in - below current market value 20% minimum.

well shoot. i already messed up step 1. comps for a similar unit in excellent condition was 180k and i purchased a rehab-condition one for 157k. is there any reason why 20% is the min?

Also, when you say below current market value, do you mean it's market value as it stands or in pristine condition? because why would anyone ever sell their property 20% cheaper than it's inherent value unless they are really motivated and under duress?

But yeah, the plan you laid out sounds good. I just needed some guidance on what is a reasonable plan to follow. If you you've done it before then I'm more confident in knowing what my potential exit strategies are and what I can do to build up my portfolio.

Wow! I live in the Portland Oregon area and it has done just the opposite over the last few years. I thought I did pretty good when I just picked up a Duplex a couple weeks ago that was listed for $359,900 and I got it for $345,000 plus the owner is paying $5,000 towards closing costs and pre-paids plus two pages of work on the place that was caught during the home inspection. Had I offered $62,000 less then he was asking I'm sure he would have just laughed at my offer.

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Hi All. New to the forms but not to Real Estate. I own 3 single family rentals and in Escrow right now on a Duplex here in Tigard Oregon. I would like to move to all plexes and get rid of my single family residences. But my question is, I have always just took a wild stab at rent amounts and guess I'm pretty lucky cause I have everything on leases with my lowest Rent at $1,025 but is there a way to find out what rents should be in a given area? One side of the duplex I'm buying is rented by the owners daughter for $850 a month and I think that is way low. it is 1256 sq feet 3bdr 2bth attached garage and backyard and all appliances. My best "GUESS" is at least $950 a month in the Beaverton area. Anyone have any ideas?

Playing with the property Analysis program here and see there is a lot I need to learn :) I am a Realtor that deals mostly in new construction subdivisions in Oregon.

Thanks a Bunch

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All Forum Posts by: Larry Lund

Larry Lund has started 1 posts and replied 10 times.

Post: Rule of 100, 1% Rule, or whatever it is called

Post: Rule of 100, 1% Rule, or whatever it is called

Post: Rule of 100, 1% Rule, or whatever it is called

Post: Rule of 100, 1% Rule, or whatever it is called

Post: Property Analysis or "Is this a good deal?"

Post: Property Analysis or "Is this a good deal?"

Post: How much cashflow is the bare min for a deal to be worth it?

Post: How much cashflow is the bare min for a deal to be worth it?

Post: How much cashflow is the bare min for a deal to be worth it?

Post: Figuring Rent Amounts