All Forum Posts by: Logan Loughmiller

Thanks so much for the replies!

@Brad Hammond - I marked the master class down on my calendar, I'll be there. That makes sense. I wouldn't have expected rents to raise that quickly, I didn't do the math for the 7% allowable raise year to year, that checks out.

Do you think 5% down is reasonable in the current market? With the intensity of competition in Portland, does it weaken your offer position to have a down payment of 5% vs 10% or 20%?

So 6-12 months is a reasonable amount of time to go in for a 2nd property? Is that just the time necessary to qualify for another mortgage?  lol...That's about what I was thinking for the stability of my focus anyways. Potentially enough time for the market to be a little more stable, but I don't want to bank on that. There's no guarantees it will calm down at all anytime within the next few years. 

@Tim Delaney - This is true. For a while at least, till it reaches a considerable amount, I would allocate that to a repair savings. And regardless, it would become additional cash flow once I moved into a 2nd property. It will be a challenge to find a deal good enough to break even month to month at 5% down in this market! (but they do exist) Would have to be under 400K for it all to balance out that way.

All around that seems to be the most universal recommendation - As low a price as you can, as little down as you can, as many properties as you can. A little more intimidating, but leaves a LOT of opportunity for 130K if I'm putting 5% + closing into each investment. Don't want to get ahead of myself, but down the road that could mean 3-4 properties.

I do also plan on raising value/getting a better purchase price with some light rehabbing as well. Specifically seeking out properties with bad paint and outdated/shabby (but functional) kitchens and bathrooms. From my research those seem to be the points where the ROI towards a better appraisal value works out.

I had a bumper crop year during the pandemic with my online retail business and have 130K to invest as a first time home buyer. Online spending went crazy over the past year, I easily made triple what I had in years past, so theres no guarantees the future will bring the same/can't expect that for future ventures. 

Wanting to make the most of this egg and put it all into some serious real estate cash flow. I'm in Portland, Oregon, home prices are soaring. 

I'm really struggling with how much to put down/what kind of setup to go with. All 3 scenarios, when I number it out, I seem to only break even, no cash flow. Early stages of loan applications, decent credit (655). 

20% on one house - house hack duplex or 3BR+ where I rent out all the rooms. Realistically expecting to pay 350K-400K, which is a bargain here. I would break even on the mortgage/tax/insurance. (and not have to pay mortgage ins) Any repairs would be from other income. 

OR

5-10% on 2 houses, living in one. Adding up comp rents, still only covers additional monthly mortgage payment + mortgage insurance. Maybe a hair extra

OR

5-10% on house hack triplex/quad. Same - Adding up comp rents, still only covers additional monthly mortgage payment + mortgage insurance. Maybe a hair extra

A lot of what I read implies my numbers are off or I'm not finding good enough deals. Somewhere in here it seems like I should be able to setup a better cash flow. Should I wait till the market calms and get house #2 then? I don't want to wait on #1 and keep pouring money into renting. 

Quite honestly, I'm a little uneasy about NOT paying 20% down. 5-10% means a lot to be on the hook for if any problems arise, non-paying renter, big repairs. A big part of this uneasiness is that I haven't had my hands on this much money before and want to be very smart with it.

Not looking for a cheerleader per-say, but more seeking advice on things I might be missing/alternatives I should explore. I have considered just buying one house hack duplex, then buying a 2nd house when the market is more stable, possibly in out of town in a less expensive area investing in an Airbnb vehicle.