All Forum Posts by: Steve Milford

@Dara Sin My recommendation is that you read tenant law regs for K Falls. You should be able to look them up. Every area has particular rules you must follow and responsibilities you have as a landlord. After you read, then you will have a better idea of whether or not to self-manage. Also think about your tolerance level of "customers" now renters. They all get cranky occasionally, yet they need to be informed of rules and expectations. In my experience, I have 20 years of calming cranky people down, and in my first rental. I explained the rules on paper, have a very detailed lease, screened for criminal, credit, and income, and am very handy. So far, knock on wood, it has been a breeze. Within first month, renter came forward asking if they could pay late (with a sob story) and I would not charge late. I said, "No, lease rules must be followed or I have to start eviction process." Now, 12-months later, renter pays like clockwork, no issues. During first 6 months, there was a a few fixes that needed to happen, some electrical, dishwasher went out, some exterior work. I did it all, as it also gave me eyes on property. This is just some food for thought.

@Adam Rasmussen Sent you a connection request, maybe we can chat?

@Alex F. If you need you need to use property managers then consider that into the mix. Most run about 10% of rent. There are 3 sides of this. Some people use PMs, some people use software platforms for rent collection with a list of contractors they use, and some people do it all themselves. 

I don't know other markets, though in this market, there is a lot of cash and a lot of people looking to buy, so if a home is a good deal it goes fast, usually in 2-5 days. If it is under-priced it will go in a day. So for you, you I would advise finding a Realtor you like, get your financing in place and then start making offers. Like I said, finding a decently priced complex or home might take a few offers. That is just the nature of the market. i.e. I preview properties all the time because many buyers don't have "the time" before an offer is accepted. If an offer is built correctly, you will be able to get out of it after it is accepted if you don't like it (when you have time to view it).

Regarding traffic, it is what it is. It is only horrible when NOT considering other areas. Rush hour is 2:30 to 6:30/7pm every day if you are going north after work. The problem lies more in the fact that there has been no new road construction in many many years, and none more to come by south of Columbia River. North of it (Vancouver and SW Washington) is another story, different state, different infrastructure, different tax base. Yet, the traffic here pales in comparison to Seattle, or another major city.

@Alex Dayes

I became an agent to raise capital, get experience, and build my own portfolio. Use your relative as a mentor so you can learn the back end of real estate too. It will open your eyes tremendously. Prior to that day I decided in 2015, I was a wannabe for 10+ years.

@Alex Dayes

My advice, get licensed to sell, so when you purchase for yourself you make the commission on the back end. The education you get from that is worth 1000 books.

@Pedro Padierna

I can't see photos, but if it is not renting, the price is too high for the experience of the potential renter or the process is too difficult.

The truck you describe is always going to be there in some fashion. A car, car parts, some other thing. That is the neighbor you inherited. The easiest thing is to just talk with them. You will get a feel for their want to help you.

Look at your advertising. When my rental came up vacant. I wanted income 3x rent AND decent credit and had trouble finding tenants. When I changed the and in that equation to OR the applicant pool got larger.

Losing a month of rent wipes out profit for whole year, so take tgat into consideration.

@Alex F.

I think your putting the cart before the horse some and not giving yourself enough credit at the same time.

You are already "in" real estate because you own a turnkey.

Every part of this market (pdx-vancouver) has its pluses and minuses. So take a look at Craigslist to evaluate rents and then look at homes or multi-family to see if it will cash flow (in the future) and then look at buying in that area.

I like Vancouver because to me has a more rural feel, population is less dense, and some would argue has "less culture", but I don't care about "culture".

Investing in real estate is still investing. It needs to make sense. I like diversification, so I also compare the returns of all my investments against each other. Real estate is about leverage which other forms don't have. Based on your goals, determines what you will do.

I.e. I have been eyeing small multi-family units. Rents for units I am looking at trend about $900-$1,200 depending on perks within and area. A mortgage with taxes and insurance before vacancy, cap exp, and pm will cost about $1,500 if I put 25% down (I already own a home in area). Add everything else in, and there is very little true cash flow. The savings really comes from the depreciation and only if I can keep my expenses low. If I can't net cash flow $3k a year (a number I set for myself) prior to depreciation the deal doesn't make sense.

In your case, you could house hack a 3-plex i.e. get in with a low amount say 5%, because you live there, (I don't see coverage of costs with a 2-plex if you live there, without supplementing with your own payments).

I use Fannie Mae Matrix as "what I can do", https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

Another example, I have also been eyeing vacation properties for my family. In this scenario I want something viable for my close and extended family with the majority of living space on 1st floor. What do I really want? I want it to pay for itself. If I airbnb it, will the cash flow from it cover my expenses the whole year? That is helping me evaluate area as well because going vacation rates fluctuate.

@Jeff S.

I use coxy.co, works great.

@Cameron Riley

I use the cloud for doc storage, any will work, each property gets a folder, keep it simple. Then I use Cozy for coordination of communication of fees, leases, expenses.

@Tom Tran

I don't see a lot of Sellers using the option because there is still too much demand. Prices are on an upswing. As long as builders refrain from building starter homes (govt fees are too high to build in that range) prices will keep increasing. My suggestion is you buy a house you want and if needed use a down-payment (dp) assistance program. Without a dp program, I have seen dps as low as 3%. You can then rent it later for your cash flow. Need cash? Become an agent, help friends and family, and look for yourself at same time, get in and find properties, then grab one for your needs. I did the exact same thing, it has been great and am on the hunt for my next rental!