All Forum Posts by: Neal Collins

@Sarah Reyes Pretty sure Boise, Oregon doesn’t exist.

@Annie Pasbrig this strategy would work, as would long term tenancies of 30+ days,

But take it from me that you do not want your only viable route forward is as a short term rental.

The laws are too shaky, and people claiming that they have a buddy who does well with 30+ day rentals often have incomplete information regarding true costs of initial capital setup, wear and tear, and vacancy.

If you want to get creative and squeeze cash flow our then potentially rent it to someone on a long term lease and give them permission to short term rental the studio out. Either charge an increased monthly rent as an easy option, or

do it the hard way as a performance based lease.

Let me know if I can share with you the rollercoaster ride that short term rental investing actually is in our market.

@Mark Ko Id go ahead and list if the tenants are already out

We used to own our own independent brokerage with a couple dozen agents. Lots of liability and systems creation. At the end of the day we realized it wasn't getting us closer towards our financial freedom goals and we didn't have much leverage with it.

After looking at our experience with our prior brokerages and our needs as investors with real estate licenses, we decided to go with eXp. There are a plethora of great brokerages in the Portland and Vancouver area, but you've got to figure out what fits your style.

eXp has been a good fit for us. We've been able to get the systems we want, transfer the liability, pay a competitive split, and generate passive income from it. We kept our brand and leverage their systems. [Solicitation Removed]

@Mark L. Before going the expensive route and thinking an attorney should get involved, I'd try first exhausting the cheap routes to get rid of the smell. Kilz, vinegar, bleach, paint, and an ozone generator should be some great tools to attack the problem. 

Hopefully in the future when you go to sell the house and you've got a boat load of equity you won't even remember this experience and you may even give your real estate agent a call to thank her for a great opportunity.

Nice thread @Jason Powell. There was some very useful nuggets that @Dave Foster dropped. What are you thinking you'd purchase? I've seen people with a house an acreage carve off the house to sell for the home owner tax benefit on sale and then exchange the acreage into a new property. It may be worth thinking about how far down the road you can kick that tax liability while also creating liquidity events along the way.

@Bovard Doerschuk-Tiberi Welcome onboard. Fellow Portlander here. There's a lot of information out there and it can be a bit like drinking from a fire hose initially. Most people stall out on the information gathering side.

@Chris M.

@Jay Hinrichs has been repeating two solid options without needing to completely overwhelm your life.

1. A Seller carried transaction with a a short amortization period and healthy interest rate to get the deal done is a solid plan.

2. Friends and family money to find cash in exchange for the same like of Note terms as the seller financed route in exchange for a first position lien. You’d be surprised at how many folks have $25k stashed under a mattress that they don’t mind putting to work for two years or so.

@Travis Athougies

Your spot on about the advantage of being an owner occupier with a renter. You have much more latitude because of that.

Yes the laws are more tenant friendly than landlord friendly in Oregon now. But you mitigate that by thorough screening practices and having good relationships with your tenants.

I like your plan. It’s realistic, proven and is a good step to build wealth over the long term.

@Jay Hinrichs

Dweller is an interesting new company in Portland that is aiming to increase density and affordability by adding ADUs to properties for free.

Patrick Quinton that used to be the head of the Portland Development Commission before it became Prosper Portland is the principal there. He’s a smart guy and has developed a very interesting business model.

He works with property owners by ground leasing a portion of their property, installs a modular ADU there at no cost to the property owner, and then rents it out. One third of the gross revenue then goes to the property owner, and the owner is not on the hook for maintenance or repairs. Dweller also pays the difference in the increase in property taxes I believe.

The property owner can purchase the ADU at a given strike price depending on how long the ADU has been on the property.

We’ve had a client install one on their property and I’ve toured several more of them. They are really nice one bedroom one bath units. It’s definitely an option that people should know about.