All Forum Posts by: Ross Leavitt

I'm trying to learn about industrial, and I'm not coming up with much info! We've done plenty of multifamily, and are considering building a multi-tenant industrial building in an Tualatin, OR. Do any of you have any resources about industrial investing to recommend? Podcasts, books, blogs, anything?

@Zack Bloom, did you end up working with that investor?

@Joel Owens it looks like you mostly do apartments and retail, but have you done much industrial? Would you recommend any resources, or would you be willing to connect to talk about this opportunity?

@Curtis Gabhart, we're looking for property in an Opportunity Zone and we're thinking about SoCal as well. Have you dealt with any Opportunity Zone properties in San Diego?

@Don Konipol are there any resources you'd recommend for learning about multi-tenant light industrial? We have plenty of multifamily experience but are looking to build some industrial, but I haven't found any good resources yet about what it's like to own these long-term. Let me know if you have ideas. Thanks so much.

@Rob Gillespie, do you still do any industrial? We've done a fair amount of multifamily, and want to build a multi-tenant industrial. But information about what it's like to own them over the long term is hard to find. Is your 7-year-old offer to talk still good? 

Sounds like you've been busy already! Love the co-working space. 

We do teardown and rebuild projects in Corvallis for OSU students. What type of projects are you looking for?

If you can find a tenant that you think is a better fit, then take it by all means. Surprising that you're not getting much interest in super-hot PDX. How are you marketing?

FWIW, here's my experience with cosigners.

We rent almost exclusively to students in Corvallis, and the majority of them are irresponsible. However, we get large deposits that almost always cover the cost of bringing the unit back to perfect condition when they move out. We also have co-signers (usually parents, sometimes another relative) that understand they are on the hook for the full rent amount and any damages. When we have a police report, or a smoking violation, or a late payment, etc., we send a warning email to the tenant and copy the cosigner on it. Problem solved. The cosigner gets the tenant in line because they don't want to get in trouble. The couple times we've had to bill tenants for additional charges beyond their deposit, those bills have been paid. We've never had to go to small claims court.

Because the cosigners are established adults with much more to lose than the average tenant, they have been wonderful assets. We almost like the arrangement better than just dealing with a tenant.

Hi Ray,

I live in Springfield, but I am doing new construction near OSU and renting to students. (You can see our current project on 25th between Lincoln and Grant. Also we're hoping to break ground on the vacant lot on 20th and Grant in a few months.) Here are my thoughts:

1. There are lots of calculators here on BP. Let me know if you've got specific questions like how much to budget for maintenance.

2. You're right about the market. You'll have a hard time finding a duplex for $250. You might, but there will be multiple offers within a day or two, maybe within hours. So you'd better have a broker who will text you when something comes up. If you can broaden your area a bit, you'll have an easier time with your budget. Albany is more affordable. On the other hand, if you can buy something in Corvallis it will rent immediately, and rents will be high. Our older 2/1 duplex units in not the greatest part of town are $1400. 

3. Anything in your budget. Long-term 2-4 units will be way better than a house.

4. If you try to play multiple realtors off each other, they won't give you their best effort. They all have access to the same MLS. Choose one that you think best understands what you're looking for, and can convince you that they can help you get your offer accepted in a competitive market. Different banks have different loan options available, so you should go to loan officers from several banks, give them your financials, and see what they can offer you.

5. Corvallis is strong, and because it is anchored by OSU it's less susceptible to recessions. Generally, it didn't lose value during the crash, just flat-lined for a few years. 

6. It takes a lot more than common sense to be a landlord. Make sure you educate yourself on all the ways you can violate ORS 90. Also, join the Linn-Benton Rental Owner's Association. 

Keep us posted on your progress!

That is a great strategy to use your HELOC, and it sounds like your duplex conversion is a solid way to get in the game! Kudos to you!

You're right that the 2%/1% rules are not real on the west coast. They are more relevant in lower-value markets like parts of the midwest and southeast. But, there are ways to get around this. You might be able to find 1% properties on the MLS in Ohio or Alabama. But here in Oregon, you may be able to create your own 1% deal by adding value. We build rentals near a university, and 2 years ago we were hitting 1% based on our cost. With higher construction costs, it's more like .8% today.

Of course, that's dividing monthly rent by our cost. If we used market value instead of cost, it would be .6%. That's the advantage of adding value to a property with your own effort.

Do you already have the land? I'd be happy to chat sometime. We've done nine smaller projects so far (seven of them were 2 or 3 houses, and the other two were 4-plexes) in Corvallis, and are, hopefully, almost ready to break ground on a larger townhouse project. PM me and we can get in touch.

@Joe Funari, thanks so much for the suggestion about Fathom. The pricing plans on their website show that they have a flat per-lease fee for agents who do property management, which doesn't sound too painful. I reached out to them, and I will let you know if it works out. 

@Chris Parrish, I did look into that, but their guidelines require "experience equivalent to at least three years of active experience as a real estate licensee." The rep on the phone said my experience as a property manager wouldn't be considered equivalent, and I can't argue with that. The other waiver qualifications are college degrees in RE. Any other ideas?