All Forum Posts by: Scott Radetich

Another option would be to sell your house and rent. That will free up all of your money for the sole purpose of building your BRRRR's.

There is nothing wrong with renting.  I've bounced that idea around more than a few times.  Especially since I just visited some of our friends who moved into a swanky new apartment in the Mississippi district.  My wife and I were like, yea, we could rent and live here.  And with the equity I have in my primary, I could do a few things...

With that little equity, i'd refi and keep it.  The rates are great right now.  I had a similar situation too, bought a rental in 2006 on a terrible interest only loan.  Never made much cash flow on it, but was able to refi into an incredibly low rate loan a few years ago, now the equity is there.  I can trade up if I want too. But i'm going to hold to it for a while longer and ride Portland's appreciation in both housing and rents.   

Two questions.

How much equity do you have?  

You say you have to refi, what is your current interest rate and terms?

And what's that old expression? "The best time to buy real estate is now, the best time to sell is never."  My wife and I still regret ever selling our first house....

Picking up a home for 350k in Westmoreland....  Now that's wishful thinking. 

I keep thinking people are crazy, but those homes I've lost out on sold for way more than I ever though they would.. So maybe they aren't so crazy after all.

I clean the gutters, Its only once or twice a year and doesn't take that much time.  The last thing I want is a tenant up on a ladder on my property.  They are in charge of the rest of the yard maintenance. But once each spring, we swing by and do a full yard tune up.  Now I don't have a lot of properties so I can do this, if (when)  I get over 10, I might start to hire this out, and it would be with a licensed and insured worker. 

One other thing to keep in mind, doing it yourself also give you a good reason to look around and see how well your property is being maintained.

Here is why I have a no pet policy...

Or option 3, 3 turn key's for 60k down making 750-975 a month. 

I too am pondering this scenario. I've got a place in SE Hawthorne that would be perfect for an ADU. I went on and ADU tour this summer and was blown away by the amount of rents some owners were collecting from Air BNB. One guy was collecting 3k a month for his studio, and it was only around 600-700sf. Shoot, I can change sheets for 3k. Even the month to month rentals were bringing in substantial rents, so its hard to argue against adding an ADU.

From the sounds of your post it seems you are leaning towards the ADU. So for that i'd say go that route, but try and make it larger. A few extra sf, won't add that much in construction costs but would make it so much more desirable to rent. Now if you are limited based on setbacks that's another thing. I'd then say take another look at the turn keys.

btw - Right now I'm working on buying more units. I can always build the ADU later. I'd rather have a few more properties that are on a fixed 30 year, 4% interest loan, than one ADU.