All Forum Posts by: Neal Collins

@Daniel Tsikata

Great job! You took a step that not many people do. Everyone’s first call sucks. Even when your skills improve you won’t always be on your game.

Be bold. Be authentic. Good luck!

@Josh Chamberlin Will put it on the calendar, thanks for organizing,

@Peter Slivkoff The MLS is a powerful tool that is handy to have, but a pain to use. Most IDX websites like HomeSnap and Zillow are a good substitute that will be able to get you comps, alerts, and filtered searches.

When the tenants have already turned the landlord into the city and you expect to buy the building, you can anticipate a likely rocky road. Now the property is on the city's radar, the tenants are emboldened, and you're going to have a lot of pressure to fix the issues in short order.

@Kyle Mccaw Nice overview. With the type of rental control measures you're talking about where rental rates are locked in, what happens is that tenants locked in at low rates stay longer and the landlord is prevented from increasing rent any, if at all. The decrease in the supply does still play an impact on the greater market in that the rental rates of the remaining supply is artificially increased above what a true market rate would be. 

I don't have any direct experience in these markets, but my assumption would be that properties are still traded at very low cap rates simply because of the potential upside that will come when a unit does eventually turnover.

Oregon was the first state in the country to pass a state-wide rent control ordinance. It's very different from the rent control measures that we often think of al la New York City. It's better described as an anti-gouging rent control. Landlords are still able to increase rent at a certain percentage per year with a formula of 7% plus CPI, which this year that number comes out to be 9.9%.

Gone are the days of a landlord being able to buy a multifamily, kick all the tenants out within 30 days, rehab, and then stabilize without having to induce minor brain damage and pay out of the nose for relocation fees. 

That's why I say if you're going to play in those kinds of markets professionally then either sharpen your sword to get better at your craft or go find a different market.

@Arnel Arrozal I’d look to save up a little more so that you can make sure your inspections and closing costs don’t completely wipe you out. Other than that you’ve got a good plan and identifying your path is a great first start.

@Tim Marr The economics behind converting all SFRs to duplexes simply isn't there. It's like Portlanders with signs in their yards that say "Stop Demolishing Portland." Not every single family in Portland will work to convert to a multifamily property. Naturally it will cause the needle to budge somewhat, but likely in the same amounts, if not less, than the rate ADU's have proliferated in Portland.

I do think that as the city develops we are going to be seeing SFR values increase. You can already see that now. We now have the demographics to support this (both good and bad I guess).

Welcome to BP! Enjoy your time in Japan. The investing over there is mindblowing.

@Bovard Doerschuk-Tiberi HB2001 is merely a drop of water in a large pool, even if you combine it with Portland's Residential Infill Project.

85% of Portland is zoned for single family occupancy and is primarily owner occupied. I don't see many of these owners chomping at the bit to chop their property in half to create a duplex. Accordingly, the increased supply of rentals that comes from this will be negligible, and frankly welcomed. The only new supply coming on the market is at the high end, and if you are an owner of C or B class properties and now have to compete with 3 months off on class A apartment buildings then good luck.

As real estate investors it's a double edged sword to see rental rates consistently and aggressively increase year over year. It causes housing instability, half-baked political policies, and an ever increasing ego of sellers. 

No matter what the days of an "affordable" Portland is long gone. Looks towards secondary or tertiary markets if that is your game. Opportunity is still here in Portland, but you'd better sharpen your sword and be prepared to compete amongst the small cap rate players that know how to ball.

@Mitchlyn D.

A couple different options you can look into:

- Maybe look at increasing the amortized term to 25 years with a balloon.

- Negotiate an interest only period—say 5 years with no prepayment penalty.

- Decrease the interest rate

- Subordinate the nite and collateralize the debt on another property that can support the payments