All Forum Posts by: Mathew Wray

Morning Feroz, 

I'll echo what Kelvin said. There are lots of variables about whether it's a good time for YOU to invest in the Portland market. Without knowing your goals, it can be really hard to give advice about specifics. In general, Portland is a great long-term market with a stable economy and a positive future outlook. I'm definitely bullish on the long-term outlook here. You can control a few factors when buying: down-payment/cash-flow, location, tenant, and condition...and you're not likely to get 10's across the board in all of them. 

Since you're traveling to Vancouver I would look in closer towards the North end of Portland: St. John's and Cully are good growth areas as well as Montavilla. If you're willing to go a little further then Oregon City and Milwaukie have some great opportunities. But again, it depends on your goals. Close-in can be a great buy as can the West side out by Intel and Nike. 

Let me know if you'd like a little more info on specifics or if we can help in any help!

Mathew

Hey Jack, sorry I missed your original post. Would love to hear about your experiences flipping in the last few months. How have you held up as the market inhales a bit here through winter?

Hi Mark, thanks for bringing this post back to life! Oregon City is an amazing town and I love the potential there. I’m often extolling its virtues to my buyers! Good luck in your hunt for property here-let us know how we can help!

Mathew

@Adam Best You are correct in your understanding! *Disclaimer* I'm not a 1031 professional. If you need a referral to someone here in Portland, let me know. That being said, you've got 45 days to identify a replacement property :) In total, you have 180 days to identify and acquire a replacement property.  To give a little wiggle room, you can identify up to 3 properties as potential "replacements" so you don't have to put all your eggs in one basket. 

As to your other question, taxes and insurance in the Portland Metro can easily eat up 10K and you'll still have vacancies, repairs, CapEx, etc.

Hope that helps!

Mathew 

Morning Will! 

Just a little food for thought as it seems like you’re leaning towards selling. I’d make sure (and I’m sure you’ve already done this) that you’re being conservative with your valuations. The Portland market has changed in the last year and sellers often have inflated ideas of value. Right now over 33% of the properties on the market have had price drops. Good properties that are well-maintained and priced right are still selling fast. 

Secondly, a 1031 is a great wealth-builder and I’d be happy to make an introduction to a well-respected intermediary so you can ask specific questions. One thing to think about there is around timing-are all of your other ducks in a row so you can hit the ground running? That 45 day identification window goes quickly so you’ll want to maximize your ability to search for replacement properties. 

Best of luck and let us know what you decide!

Mathew

Morning Adam! Welcome to BP! Can’t agree enough with Jay about checking out Rarebird-it’s a great organization. And yes, you should bump 222 up your list. I remember listening to it on a plane ride home and I had to keep stoping to take notes. 

We’ve got a good community of folks here, so don’t be afraid to ask questions!

Mathew

Kyle, I think you’re going about the process the right way! When finding an agent you’ll want to ask a series of questions, meet up with them to gauge personality/expertise fit, and ideally ask for referrals from friends/acquaintances who had outstanding experiences and results.  The BP community is a great place to start!

Hope that helps!

Mathew

Hey Wendy, welcome (temporarily) to Portland!

I think you’re so far ahead of the game that it’s amazing! Whether you leverage rentals or not (a personal choice based on your risk tolerance and debated constantly) don’t discount the income coming off the rentals from your figures. It looks to me like your flipping will be your main source of income and you’ve got a year to turn a profit, so that rental income can be used as a buffer or poured back in for more rentals. 

Also, you could shave some off your required dollar amount by leaning on your track record and borrowing money-you have to account for it when running your numbers, but it allows you to retain (or not need to save) all that cash up front. 

My .02 

Mathew 

Hey Marcus,

Just a couple words-make sure you disclose that you’ll be doing a 1031 up front during the transaction! And, get involved with a 1031 intermediary early! They’ll be able to talk specifics with you and potentially save a fortune in taxes and headaches down the line. If you’d like an intro to a fantastic, local exchange intermediary send me a PM.

Good luck with the sale!

Mathew

Morning Vicky, Mary is correct, you’ll likely want to significantly lower your ask. Much like with sales, we don’t actually set the rents...the market does and it’s telling you that you’re priced to high. 

You’re up against a number of factors-most important of which is timing (December is a tough month to rent with less people moving) and also a saturatation of higher-end rentals (you’re competing with lots of new construction condos available for rent). 

Like Mary said, you’ve got a good comp in your building. Next step is Craigslist. I know you’re near Arbor Lodge but I’d check out other new construction rentals in prime neighborhoods...your tenant is likely someone just moving to Portland and they’re going to know about those prime neighborhoods. If your rent is equal to or higher than theirs then that’s likely a problem as well. 

I’d reassess your marketing as well. It’s not drawing the people you want so double check your photos, change up your language and key-words, etc. 

Does that help?

Mathew 

Hey Josh, congrats on achieving such a great feat and having a house paid off entirely in Portland...it provides a great base for future investment. 

I won’t weigh in on the dead-money vs. security aspect of what to do with the house. There’s enough articles, calculators, podcasts, and commentary around the debate and none of it matters because none of those take into account your wife’s views and the health of your marriage. In my eyes, the question, “Does this make my marriage stronger?” should be your first filter for every decision, including investment. 

I'm a big advocate of using your VA loan to purchase another property but I'd really encourage you to think bigger. She's onboard and with your income and a house paid off, I'd look for a triplex or quad to get into so you multiply all the duplex benefits and mitigate some of the risk. Obviously you'll be trading some cash-flow for the low-down potential of the VA loan, but it puts you one step closer to your goal and after you're out of the house your wife may view tapping the equity a little differently. Or you may view it as not as necessary.

Hope that helps!

Mathew