All Forum Posts by: Eric Bilderback

@William Chrisman

I use 5% vacancy which is conservative here we have more like a 1-2%.  That being said it probably won’t always be that good and I am in a totally different part of the country so that might not work for you.  5% is the lowest I would use though.

I like Washington Federal.  I have a pretty good relationship with them.  If you are hoping to buy lots of rentals it would be ideal to start a relationship with a local lender.  The banks such as US Bank have make you jump through more hoops.  I was shopping for a commercial loan and the big banks told me no.  Washington Federal and Bank of the Cascades both approved me (I believe Bank of the Cascades is having a portion this month.)  Umpqua Bank has some helpful people as well.  Feel free to PM me if you would like a name and contact info.  

Congrats and good luck!

I use 5%.  Then keep 6 months worth of expenses for reserves, and make sure it can cashflow if market rents dropped 20%.  I am guilty of not following that criteria but I do strive for it.   But if you are buying a brand new building you probably won't have any capex.  My stuff is all 70s-80s and I think 5% is about right for cap ex and another 5% for general repairs.

Good luck!  

@Ian Berg

I find it a little concerning that you are not all over Prineville.  Would you mind responding this?

Prineville has the had the highest increase in K-12 schools enrollment in 2016.  I see a lot more possibilities for Prineville, the land is less expensive for businesses and it is the same distance more or less to the Redmond airport.  I also see many more people who at one time would have retired in Bend or Sisters either having to or opting to retire somewhere like Prineville, which I think is better then La Pine and Madras.  

You don’t have to write me a book here but is your position that once these facilities are built out there could be a lag there and therefore it is a risky bet.  I like Prineville and promote it so much I think they should make me the mayor!  

Ian,

Whats up man?  How are those ice dams coming along?  Would love to here what you have to say about the market here in Central Oregon.  Are you buying still or are things to high?

Ian is a good guy.  And he is the real deal when it comes to real estate.  I have a landscape business and I have worked for him and at many of his properties.  Hope to catch you in here.

Finding good deals, the out there deals ain’t what the used to be.  I also I’m feeling conservative as rising interest rates probably mean buy and hold guys are not going to see cap rate rise.  But I want to make some doggone money and get to my freedom number!

@Barrett Determan  Would you share the details of that deal?  Maybe you could wholesale it if it is a good one.

I'd ask a realtor to send you a list of what is on the MLS in regards to RM. Then if you wanted to get further in the weeds I would ask the county for a list of undeveloped RM lots. I bought a list of Multifamily buildings in Deschutes county for $35. It has the address of the dwelling and where they send the property tax statement with the name of the owner.

As you probably have heard at nausium the market is hot.  I have had smoe success finding properties who's rents are lower then market then simply raising the rents.  Not all that sexy but rents have grown so fast it has left some opportunity.  

@Marc C.

That seems like a no brainer if you are getting your money back in 36 months.  It is taking me 5 yrs.  I will put 6k in a unit if I can up the rent $100.  I don’t feel like it is a good return just better then anything else I can find, and it is safer I guess. 

Strategically I was considering selling or refi after they have all been updated to get the money back out and go after something else.  Maybe somewhere sunny, like New Mexico.