Tag: real estate tips

The Growing Opportunity of Midterm Rentals

Posted on by Will Sing

Midterm rentals are properties rented for more than 30 days but less than a year. They are gaining attention as a smart investment strategy for homeowners and investors. These rentals have become more popular in recent years because they can bring in good money, even in today’s challenging housing market.

What Are Midterm Rentals?

Midterm rentals fall between short-term rentals (like Airbnb) and long-term rentals (leases for a year or more). These properties are rented for months at a time, often to people who need a temporary place to stay but not for just a few days. Midterm rentals became even more popular during the pandemic when many cities put rules on short-term rentals.

Who Stays in Midterm Rentals?

Midterm rentals work well for:

  • Traveling Medical Staff: Nurses and healthcare workers often need a place to stay for a few months while working in different cities.
  • Workers on Temporary Projects: Construction workers, consultants, and other professionals who travel for work prefer staying in midterm rentals over hotels.
  • Families Trying Out a New City: People who want to move but aren’t ready to buy a home might rent a place for a few months to see if they like the area.

Why Invest in Midterm Rentals?

Midterm rentals can make more money than long-term rentals. This is because people staying for a few months often pay more than those who sign a year-long lease. Plus, midterm renters are usually professionals or families, so they tend to take better care of the home.

Unlike short-term rentals, midterm rentals don’t come with as many rules and regulations. This makes them easier to manage. Since people are staying longer, there are also fewer cleanings and turnovers, which saves time and money.

What Types of Homes Are Best?

Homes with 1-2 bedrooms are often the best fit for midterm rentals. This is because most midterm renters are single travelers, couples, or small families. A two-bedroom home where one room can be used as an office is also popular. Midterm renters look for places that are comfortable and well-kept, but the home doesn’t need to be fancy.

Where Should You Invest?

The best places for midterm rentals are cities or towns with:

  • Hospitals and Medical Centers: Traveling nurses and healthcare staff often need nearby housing.
  • Big Companies and Construction Projects: Workers coming in for temporary projects look for midterm rentals instead of hotels.
  • Areas with Few Hotels: If there aren’t many hotels or the hotels are too expensive, people will prefer midterm rentals.

Examples of Good Markets: Cities like Seattle and Nashville are popular, but smaller towns and rural areas with business hubs can be great options too. Check if there’s demand by looking at how many hotels or other rental options are in the area.

Is Now a Good Time to Start?

Yes! The midterm rental market is still growing and not as crowded as short-term rentals like Airbnb. Experts say it’s like how short-term rentals were in 2012, which was a great time to get started. By investing in midterm rentals now, you can build experience and get ahead as more people find out about this type of rental.

Tips for Starting:

  • Research Your Market: Know who will be renting and why. This could be medical workers, business travelers, or families.
  • Start Locally: If you live in or near a city with a big hospital or major companies, consider starting there. You already know the area, which helps with setting prices and marketing.

Ready to Explore Midterm Rental Options in Portland?

If you’re interested in exploring midterm rental opportunities in Portland, I’d love to help! Whether you’re looking to invest or simply learn more, I can guide you through the process. Schedule a time to chat with me using my link, and let’s discuss your goals and options.

Septic Tanks Uncovered: Your Guide to Understanding and Maintaining Septic Systems

Posted on by Will Sing

Hey Portland home enthusiasts! I’m here to demystify the world of septic tanks for you. Let’s dive right in!

What is a Septic Tank?

A septic tank is essentially a personal waste management system, a great alternative to the public sewer. It’s a passive strategy to separate floatable matter and solids from the wastewater that exits your home. The system comprises the tank itself and a drainage field. The tanks come in various sizes, accommodating different occupancy levels based on their storage capacity.

Maintenance: The Key to Longevity

A well-maintained septic tank can last a long time, requiring cleaning every 5-7 years and annual filter maintenance. It’s not just about longevity; it’s about fostering an environmentally friendly and cost-effective waste management solution.

Pros and Cons: What You Need to Know

While septic systems are eco-friendly and generally more affordable than sewer lines, they come with responsibilities. You need to be mindful of what goes down the drain to avoid system clogs and ensure regular maintenance to prevent drainage issues.

Inspection Insights: What to Expect

During a home transaction involving a septic system, it’s vital to locate, clean, and inspect the tank. This process, which can involve various costs, ensures the system is functioning correctly and helps identify potential issues that might affect the transaction.

Facing Issues: Solutions and Costs

If issues arise, they generally involve the tank or the drainage field. Solutions might include installing a new tank or drainage field, or hydro-jetting to improve drainage. These repairs can be substantial, ranging from $10-20+k, emphasizing the importance of a thorough inspection during the home buying process.

Connecting to the Public Sewer: An Alternative

If fixing the septic system isn’t feasible, connecting to the public sewer is an alternative, albeit a potentially costly one, depending on the proximity to the public sewer line.

Conclusion

Understanding the state of a home’s septic system is crucial when buying a home. It’s a significant aspect that can affect your home buying experience, and being well-informed can aid in making the best decision for you.

Dive into the video for a deeper dive into this topic!

Got questions or need advice on septic systems in your home buying journey in Portland? Feel free to reach out at 📞 503-303-0822 or 📧 hello@agentlivinginpdx.com. Let’s ensure your new home’s septic system is not a drain on your resources!

What You Need to Know About HOAs: A Homebuyer’s Guide

Posted on by Will Sing

What is an HOA?

An HOA, or Homeowners Association, is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and residents. When you purchase a property within an HOA’s jurisdiction, you automatically become a member and are required to pay dues, commonly known as HOA fees. These fees contribute to the upkeep and maintenance of common areas and sometimes cover utilities like water, sewer, and trash.

The Benefits and Drawbacks of HOAs

Benefits:

  • Reduced Risk Profile: By joining a larger group of homeowners, you’re contributing to the maintenance and exterior updates, which can reduce your individual risk.
  • Community Standards: HOAs help maintain property values by enforcing community standards and ensuring properties are well-maintained.

Drawbacks:

  • Cost: HOA fees can range from as low as $60 to over $500+ per month, depending on the age of the property, size of unit, and the reserve funds available for repairs and maintenance.
  • Control: You may have less control over certain aspects of your property, as the HOA will have rules and regulations that you must follow.

What Do HOAs Cover?

HOAs typically cover the maintenance of common areas, which can include landscaping, pools, and recreational centers. They may also cover certain utilities, though this can vary. For example, in the Mountain Park area, there are separate HOAs for specific building complexes and an overarching HOA for the entire area, providing amenities like a pool and a rec center.

Special Assessments

Special assessments are additional fees that can arise when the HOA’s reserve funds are insufficient to cover major repairs or improvements. These assessments are usually paid on top of your regular HOA fees and can significantly impact your budget. It’s crucial to be aware of potential special assessments, especially if the property is older and may require more extensive maintenance.

HOA Transfer Fees

When purchasing a property with an HOA, be prepared for an HOA transfer fee, typically ranging from $200 to $1,000. This fee can vary widely depending on the specific HOA.

Reviewing HOA Documents

In Oregon, there isn’t a large governing body overseeing HOAs, so it’s essential to thoroughly review all HOA documents. Here are the five key documents you need to examine:

  1. Reserve Study: This document details the HOA’s reserve funds and planned improvements.
  2. Financial Reports: Ensure the HOA is financially stable and can cover future expenses without needing special assessments.
  3. Meeting Minutes: Understand ongoing and upcoming issues, potential rule changes, and financial health.
  4. Governing Documents: These include the rules and regulations, such as pet policies and property use restrictions.
  5. Insurance Certificate: Verify that the HOA has adequate insurance coverage.

Getting Expert Help

While reviewing these documents, consider hiring a company like CID Analytics. They offer a service similar to a home inspection but for HOAs, providing a detailed report on the HOA’s health and potential issues. This service costs around $600 and takes about five business days to complete.

Conclusion

Understanding the role and impact of an HOA is crucial when buying a home. By reviewing the necessary documents and considering both the benefits and drawbacks, you can make an informed decision that suits your needs and lifestyle.

For personalized advice, you can schedule a free strategy session here. Also, check out my Free Buyer’s Guide to help you navigate the home buying process.

Watch the full video on Understanding HOAs: What Every Homebuyer Needs to Know.

Connect with me on YouTube, Instagram, or Facebook!

 

What Does Contingent Mean in Real Estate? A Complete Breakdown for Buyers and Sellers

Posted on by Will Sing

In the world of real estate, the term “contingent” can sometimes leave buyers and sellers scratching their heads. Whether you’re navigating the buying process or preparing to list your home, understanding contingent offers is crucial. In this post, we’ll break down what it means to be “contingent” in real estate, how it affects you as a buyer or seller, and what potential scenarios you could face.

What Is a Contingent Offer?

A contingent offer on a house means the buyer has included a protective clause in their contract. This contingency gives the buyer an option to back out of the purchase if certain conditions are not met. Typically, a contingent offer involves the buyer needing to sell their current home before they can finalize the purchase of a new one. Think of it as a step in between “active” and “pending”—the property is not quite under contract yet, and there’s still an opportunity for other buyers to step in.

If you’ve heard the term “bumpable buyer,” it means that the current buyer’s offer is contingent on selling their home, and another buyer could potentially “bump” them out of the contract. Essentially, it’s a state of uncertainty, and another buyer might have a chance to swoop in.

What Does Being Contingent Mean for Buyers?

For buyers, there are two key scenarios involving contingent offers:

  1. You Are the Contingent Buyer: You want to buy a home, but you need to sell your current property first. This makes your offer contingent on that sale, which can sometimes be a hurdle. If another buyer who is not contingent decides to make an offer, you will usually have 48 to 72 hours to either remove your contingency or lose the property.
  2. You Are a Competing Buyer: You want to buy a property that already has a contingent offer. In this case, you can put in an offer, which then triggers the “bump clause.” The original buyer (who is contingent) will have a set amount of time to remove their contingency—if they can, they go from “contingent” to “pending,” solidifying their contract. If they cannot, the seller is free to accept your offer, and the contingent buyer is out.

What Does Being Contingent Mean for Sellers?

If you’re selling your home and receive a contingent offer, it’s important to understand the potential risks. If the buyer needs to sell their current home, this could delay your closing timeline. For instance, if their home takes longer to sell than expected, you might need to extend the closing date, which can be problematic depending on your plans.

It’s also essential to assess the buyer’s preparedness to sell their current property. Are they already on the market? Are they prepped and ready, or are they just starting? The more ready they are, the less risk you’ll face. Given the additional uncertainty, contingent buyers often need to make a stronger offer to compensate for the risk you are taking.

Key Takeaways

  • Contingent Offers: Buyers need to meet specific conditions, often involving selling their current home.
  • Bump Clauses: If you are the contingent buyer, be prepared to act quickly if a competing offer comes in.
  • For Sellers: Contingent offers can mean more risk and longer timelines, but they might come with a higher price to compensate for that risk.

Watch the Full Video: The REAL Difference Between Contingent and Pending

If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

Navigating Your Home Purchase: Who’s Who in a Real Estate Deal

Posted on by Will Sing

Understanding the Key Players in Your Home Buying Journey

Buying a home involves several key players, each with a unique role. In this blog post, I’ll walk you through the major roles in a real estate transaction, what they do, and how they help ensure a smooth process. Whether you’re a first-time buyer or an experienced investor, understanding these roles will give you the confidence to navigate your home buying journey.

The Real Estate Agent: Your Project Manager

First and foremost is your real estate agent. Think of your agent as the project manager of your home buying process. Their job is to guide you from start to finish. Here’s what you can expect from your real estate agent:

  • Scheduling Tours: Arranging viewings for properties you’re interested in.
  • Determining Comps and Offer Strategy: Helping you understand the market value and craft a competitive offer.
  • Negotiating Deals: Working to get you the best terms possible.
  • Scheduling Inspections: Coordinating necessary inspections to ensure the property is in good condition.
  • Connecting with Contractors: Providing referrals for any needed repairs or renovations.
  • Resource Direction: Guiding you to tax or legal professionals as needed.

The Lender: Securing Your Mortgage

Next is the lender, who plays a crucial role in securing the financing for your home. They will:

  • Pre-Approval Process: Help determine how much you can borrow and identify suitable loan programs.
  • Document Collection: Request necessary documents to process your loan application.
  • Loan Processing: Guide you through the steps to secure your mortgage, providing clarity on your financial obligations.

It’s essential to work with a lender who communicates effectively and who you can trust. Poor communication can jeopardize your transaction.

The Escrow Officer or Title Company: Ensuring Neutrality

The escrow officer or title company acts as a neutral third party in the transaction. Their responsibilities include:

  • Holding Earnest Money: Managing the deposit you make when your offer is accepted.
  • Facilitating the Closing: Ensuring all paperwork is completed and funds are distributed correctly.
  • Providing Title Insurance: Protecting you against any title disputes.

Home Inspectors: Assessing Property Condition

Home inspectors are like the primary care doctors for your new home. They meticulously examine the property to identify any potential issues. Key tasks include:

  • Detailed Inspections: Checking structural integrity, plumbing, electrical systems, and more.
  • Referrals to Specialists: Suggesting further inspections if they find potential problems.

The Appraiser: Determining Home Value

Appraisers assess the value of the home to ensure the lender is not over-lending. They are a neutral third party and you won’t have much direct contact with them. Their role is crucial for:

  • Valuation: Ensuring the home’s value justifies the loan amount.
  • Risk Mitigation: Protecting the lender from overextending credit.

The Insurance Agent: Securing Home Insurance

Home insurance is mandatory when buying a home. An insurance agent will:

  • Policy Selection: Help you choose the right insurance policy for your home.
  • Bundling Options: Provide options to bundle home insurance with other policies for discounts.

Other Key Players

Additional roles that may come into play include:

  • Transaction Coordinators: Assist with paperwork and ensure everything runs smoothly.
  • Home Warranty Providers: Offer warranties to cover potential mechanical issues.
  • Contractors: Provide estimates and complete any necessary repairs or upgrades.

Conclusion

Understanding the roles of these key players in a real estate transaction can help you navigate the process with confidence. If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

When Can I Move In? Understanding Possession Dates in Real Estate

Posted on by Will Sing

One of the most common questions buyers ask is, “When can I move in?” The answer depends on the possession date in your real estate contract. This date determines when you officially take ownership of your new home and can start moving in. Let’s explore three main scenarios for possession dates, helping you understand what to expect and how to plan your move.

1. Possession on the Closing Date

The most straightforward scenario is when your possession date matches the closing date. On this day, you sign all necessary documents, and the property becomes yours. Once your name registers with the title, you officially own the home and can start moving in immediately. This scenario is ideal for many buyers because it allows you to move in as soon as the deal closes.

2. Possession After the Closing Date

Sometimes, sellers need extra time in the property after the sale is finalized. In these cases, the possession date will be set for a few days or weeks after the closing date. For example, if your closing date is January 15th, you might agree to give the sellers two more weeks to move out. During this period, you own the property, but the sellers remain in the home, often paying you rent until they leave. This arrangement, known as a “rent-back” agreement, is common when sellers need more time to relocate.

3. Early Occupancy Before Closing

A less common scenario involves moving into the property before the closing date. While convenient, this option comes with risks. If the transaction falls through, you may have to move out before the deal completes, causing major inconvenience. Additionally, you will likely need to pay rent to the seller for the time spent in the home before closing. Early occupancy is typically reserved for special circumstances and requires careful consideration.

Planning Your Move-In Day

If your possession date is on the closing date, planning your move carefully is essential. Typically, you can expect to receive the keys to your new home by 3 PM, but it’s safer to aim for a 5 PM move-in. The exact time depends on when the title records. I will keep in close contact with the title company and update you promptly. If there’s a chance to get in earlier, I’ll notify you as soon as possible.

Have Questions? I’m Here to Help!

Understanding possession dates is crucial for a smooth transition into your new home. If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

From Frustration to Fulfillment: Hannah and Luke’s Journey to Finding Their Dream Home

Posted on by Will Sing

Buying a home is more than just a transaction; it’s a journey filled with hopes, dreams, and sometimes, challenges. For Hannah and Luke, the journey was anything but straightforward. They started out in a small 1-bedroom, 1-bathroom townhouse but dreamed of moving into a single-family home where they could start their family. However, after working with two different sets of realtors and feeling let down, they were starting to lose hope.

When Hannah and Luke found me, they were understandably cautious. We worked together on and off for about two years, with no pressure to rush into a decision that didn’t feel right. They appreciated that I wasn’t pushing them to buy just any house. My priority was to find them the right home—a place where they could envision their future. It wasn’t just about a transaction; it was about ensuring they found a home they would love for years to come.

The Turning Point: Finding “The One”

After seeing numerous houses, we finally found one that seemed perfect. But, as with many things in real estate, there was a potential “gotcha”—this time, it was the solar panels. The house itself was everything they wanted, but the solar panels came with a $40,000 loan, which was a huge shadow over the property. This was a significant concern for Hannah and Luke, and understandably so.

Guiding Through Negotiations: A Win for the Clients

I knew this was a deal-breaker for them, so I went into negotiation mode. We successfully negotiated for the seller to cover the entire $40,000 loan on the solar panels, ensuring Hannah and Luke wouldn’t have to take on that burden. Additionally, we secured $12,000 in closing costs covered by the seller—a huge win for my clients.

The key to these successful negotiations was preparation. I had worked closely with Hannah and Luke throughout the process, making sure they were ready to act when the right opportunity came up. A year prior, they had been pending on another house, but that deal fell through. From that experience, we learned the importance of being “patiently aggressive.” We were ready to jump on this house as soon as it hit the market, with all the necessary ducks lined up far in advance.

The Final Outcome: Thrilled with Their New Home

The outcome couldn’t have been better. Not only did Hannah and Luke move into their dream home in Tigard, OR, but they also walked away from the process feeling supported, informed, and truly cared for. Their feedback says it all:

“Where is the 6-star option?!?!?!? Will went well ABOVE AND BEYOND my expectations to get my wife and I our dream home after 2 years of searching with him. The best thing about Will is that he LISTENS to your input! He also provides excellent home advice from his personal experiences, is very proactive in communication, and is extremely patient. I can’t recommend working with Will enough!!!

Will was wonderful to work with – patient and understanding, willing to work through the details and all of our tedious questions. After a long search, Will helped us land in a house that checked almost all of our boxes. He followed that up with helping sell our previous home in what felt like record time! He is very knowledgeable, kind, professional, and provides many informative resources to ease the process for an anxious buyer like me. Would highly recommend. Thank you, Will!”

For me, stories like Hannah and Luke’s are why I love what I do. It’s not just about helping clients buy or sell a home—it’s about making sure they’re truly happy with one of the most significant decisions of their lives. If you’re looking for someone who will listen, guide, and go above and beyond to find the right home for you, I’m here to help. Let’s start your journey today by setting up a 1:1 meeting to discuss.

Home Warranties Explained: Pros, Cons, and Everything You Need to Know

Posted on by Will Sing

When buying a home, one of the considerations you might encounter is whether to invest in a home warranty. In this blog post, we’ll dive into what home warranties are, their benefits, potential drawbacks, and why you might need one.

As a local real estate agent in Portland, Oregon, I often get questions about home warranties. If you have more questions or need specific advice, feel free to reach out. My contact information is below.

What is a Home Warranty?

A home warranty is essentially an additional insurance policy for your home. It provides an extra layer of protection on top of your homeowner’s insurance. Typically, a home warranty covers things like the water heater, HVAC system, and major appliances.

When buying a home, you can ask for a home warranty as part of the deal. Either the buyer or the seller can pay for it, depending on the negotiation. Usually, a home warranty lasts for about a year, but it can be renewed annually.

Cost of Home Warranties

The cost of a home warranty varies, but it usually ranges from $400 to $650 per year. This cost can sometimes be financed by the seller for the first year, and after that, it’s up to you to renew it.

One thing to note is the service fee. When you call for a repair, you’ll pay a fee for the service technician to come out and assess the issue. This fee typically ranges from $80 to $100.

Pros of Home Warranties

  1. Financial Protection: Home warranties cover unforeseen repairs, which can be a lifesaver if you don’t have a lot of cash reserves. For example, if your water heater, which costs about $1,300, breaks down, you might only have to pay a $85 service fee for a replacement.
  2. Convenience: Home warranties provide access to a network of professionals. Instead of searching for a plumber or an electrician, you make one call, and the warranty company handles the rest.

Cons of Home Warranties

  1. Unused Benefits: If you don’t need any repairs, you might feel like you’ve wasted money on the warranty.
  2. Service Fees: You’ll have to pay a service fee each time you request a repair. While common for some services, it can add up over time.
  3. Limited Control: You don’t get to choose the service professional. The warranty company decides who handles the repairs.

When to Consider a Home Warranty

Deciding whether to get a home warranty depends on your risk tolerance and financial situation.

  1. Get a Home Warranty If: You don’t have a lot of cash reserves. A home warranty can help cover significant expenses, giving you peace of mind and financial protection.
  2. Skip the Home Warranty If: You have substantial savings and can handle unexpected repairs out-of-pocket. Also, if you’re buying a new construction home with a builder’s warranty, an additional home warranty might be unnecessary.

Doing Your Due Diligence

It’s essential to do your due diligence when considering a home warranty. Review example plans and understand what each warranty covers. Make sure you know where your homeowner’s insurance overlaps with the home warranty to get the best value for your needs.

Conclusion

Home warranties can provide peace of mind and financial protection for homeowners, especially those without significant cash reserves. However, they may not be necessary for everyone. Ultimately, the decision to get a home warranty depends on your financial situation and risk tolerance.

For more personalized advice, feel free to connect with me on YouTube, Instagram, or Facebook. If you’re looking for more in-depth assistance, you can schedule a free strategy session with me here.

Also, check out my Free Buyer’s Guide to navigate the home buying process with confidence.

Thank you for reading, and I look forward to helping you on your real estate journey!

Navigating Real Estate with Tenants? Here’s Why You Need to Know About Estoppels

Posted on by Will Sing

What Is an Estoppel?

If you’re involved in real estate transactions, especially those with multi-family properties or tenants, you’ve likely heard the term “estoppel.” But what exactly is an estoppel, and why is it important in real estate?

An estoppel is a legal document provided by a tenant during a real estate transaction. It outlines key details about the lease agreements, including the tenant’s rights and responsibilities, as well as other relevant information. Think of it as a written confirmation from the tenant that details the terms of the lease, which can be crucial in preventing future disputes.

Key Details Included in an Estoppel

Some key details typically included in an estoppel are:

  • Names of all tenants and occupants in the unit
  • Lease term, including start and end dates
  • Rental payment amount and due dates
  • Security deposit details
  • Responsibility for utilities
  • Ownership of appliances
  • Information about pets
  • Any problems or repairs needed
  • Other agreements made with the landlord

Why Are Estoppels Important?

Estoppels are voluntary, meaning a tenant isn’t required to fill one out. However, they are in the tenant’s best interest because they bring any unwritten rules or expectations to light. This can be particularly important if there are verbal agreements between the tenant and the landlord that aren’t documented in the lease.

For instance, if a tenant has a verbal agreement with the landlord that the landlord will handle lawn maintenance, but the lease doesn’t reflect this, the estoppel provides an opportunity to clarify such arrangements. This helps both the buyer and tenant understand the full scope of their obligations and rights.

The Pros of Using an Estoppel

One of the biggest advantages of using an estoppel is that it helps eliminate potential disputes down the road. By having everything documented, both the buyer and tenant are protected. For the buyer, it’s an added layer of security, ensuring there are no surprises after the deal is closed. It also helps in understanding the tenant’s expectations, which is crucial for maintaining a good landlord-tenant relationship.

Additionally, an estoppel can serve as a defense if a tenant later claims that certain agreements were in place with the previous landlord. With an estoppel in hand, you have written proof of what was agreed upon at the time of purchase.

The Cons of Using an Estoppel

While estoppels offer significant benefits, there are a few potential downsides to consider. First, because they are voluntary, tenants may refuse to fill them out or may delay doing so until after the inspection period. This can be frustrating, especially if you’re trying to finalize the details of your purchase.

Another potential downside is that an estoppel might reveal unfavorable terms or conditions that you weren’t aware of before. While this can be disheartening, it’s better to know these details upfront rather than being blindsided later.

Final Thoughts

In real estate, especially when dealing with properties that have tenants, an estoppel is a valuable tool that can help clarify lease terms and protect both buyers and tenants. While there are some limitations to what an estoppel can accomplish, its ability to document and confirm lease details makes it a crucial element in many transactions.

If you’ve encountered estoppels in your own transactions or have any tips to share, I’d love to hear about your experiences in the comments below. If you found this post helpful, be sure to check out the full video on my YouTube channel: Avoid These Real Estate Mistakes: The Truth About Estoppel. And, of course, don’t forget to like, subscribe, and share this content if you think it could help others navigate their real estate journeys!

Connect with me on YouTube, Instagram, or Facebook for more insights into real estate. If you’re looking for personalized advice, feel free to schedule a free strategy session here. Don’t forget to grab your free Homebuyer’s Guide here to make your real estate journey even smoother!

Disclaimer: Please note, I am not a lawyer. The information provided in this blog post is based on my experience as a real estate professional and is intended for educational purposes only. For legal advice, please consult a qualified attorney.

How to buy a Duplex with FHA 3.5% Down Payment

Posted on by Living Room Realty
By Sorcha Porter: Licensed Assistant to Shannon Dooley

In a time where interest rates are high the possibility of homeownership might feel like it’s becoming out of reach for many buyers. For every point interest rates go up nationally 5million people lose their ability to qualify for home ownership. That combined with financial experts like Dave Ramsay who encourage people to have 20% down when they buy makes the goal of home ownership feel extremely out of reach. Especially in places like Portland Oregon where the average home sells for $566K that downpayment combined with monthly payment makes homeownership feel super inaccessible.

But there’s another way to get on the property ladder that many first time buyers don’t think of. It’s a way that anyone who’s built an income from real estate will tell you either they did, or wish they did starting out. It sets you up for SO much success and can cost LESS than buying a standard single family home. To achieve this you can use the FHA 3.5% down loan to purchase a Duplex.

The main advantages to owning a multi unit property are the following;

  1. Leverage rental income to offset or pay your monthly mortgage.
  2. Use the income from the rental to increase your buying power, lenders can count 75% of market rate rental towards your income if the property is vacant and 75% of the actual rent if the unit is occupied towards your monthly income to help you qualify for more. Meaning you could potentially get into a better home, or neighborhood.
  3. When your tenant is paying some or all of your mortgage you can save SO much money for emergencies, life goals and even future properties!

To break this down I connected with one of Living Room’s Partner lenders James Adair at Neo Home loans to give us the numbers on a property recently sold by Kim Parmon so you can actually see how this pencils out.

“Using the FHA loan program is a fantastic way to access multi unit properties IF you plan to owner occupy.  

With both mortgage interest rates AND home prices rising, the cost to buy and hold real estate has simply never been higher, and it is pressuring the house hold incomes of many families. Buying a property that has more than one living space means you can offset your mortgage payments with the rental income on the other unit. 

The example case study we are using to illustrate this is a recent sale on N Albina that was listed for $699,900.00.

N Albina Duplex Cream, with coral pink doors and green lawn. 4 windows on front and cute wreaths on doors
Front elevation of Kim Parmon’s adorable Albina Duplex listing.

The most common mortgage strategy for multi unit is the FHA loan program.  The FHA simply offers the most LEVERAGE in that you are allowed to buy a 2-4 unit property with as little as 3.5% down payment. 

Non-FHA insured alternatives usually require much more down, but the FHA really shines here.  Not only can you access some income offsetting monthly mortgage costs with FHA –but you can also use the NEW RENTAL income to help you qualify for the mortgage.  This means that you’re buying power is amplified when you get a multi unit property like this.  

In our example the rented unit was producing approx. $2300 per month.  This translates to $20,700.00 of additional qualifying income for the financing.  More simply put- this particular property adds $140,000.00 of NEW BUYING POWER.  

As this property is listed for $699k – if your max purchase price on a NORMAL SINGLE FAMILY property was $560k – you could conceivably qualify for this purchase price, due to the added qualifying income. 

We estimate that this property with a minimum 3.5% down payment would translate to a total PITI+MI payment of approximately $5,200 per month.  When you adjust for the $2300 of income, the NET cost to live here becomes $2,900 per month.  If you wanted to land at a monthly mortgage of $2900, you’d end up capping out at a purchase price of about $355k (with the same down payment dollar amount).  

The buying power is only part of the story- the ECONOMIC LIFESTYLE POWER is equivalent to the difference between $699,900 and $355,000 – that’s $344,500 of magic real estate bucks that the other unit creates for the buyer. “

In conclusion…

If you’re looking at buying a home in 2023, and you’re daunted by the interest rates, and rising costs this is a way for you to get on the property ladder, and once you’re on it it’s so much easier to climb and leverage it to your advantage. If you’d like to learn more about duplex purchases, and or buying an income property we’d love to talk to you. Just reach out to us here! And be sure to connect with a lender, James is licensed in 48 states so odds are good he can help you wherever you are!

 

5 Factors That Affect The Resale Value Of Your Home

Posted on by Living Room Realty

Often home buyers navigating the real estate market tend to focus on the factors that suit their current needs and their foreseeable needs for the duration at the property. As a result, many overlook the home’s future resale value, which can be a big mistake when it comes time to resell.

The property’s location, size, layout, and condition all influence whether the home is a good investment, or whether you will have resale problems later on.

Here are a few things you might want to consider that will affect a home’s resale value down the road…

 

#1 – The Neighborhood

Location influences the value of real estate more than anything else. Homes in a desirable area will attract a larger pool of buyers, and competing buyers typically push prices up. And this is exactly what you want when you put the house up for sale in the future!

 

#2 – The Layout

Regardless of the square footage of the house, the configuration of the rooms plays an important role in establishing resale value. For example, bedrooms and bathrooms with poor layout or functionality could negatively impact the property’s value. Also, kitchens with an open floor plan are generally more desirable than ones with a closed layout.

 

#3 – The Upgrades

Some upgrades, renovations, and improvements can instantly boost a home’s equity.

For example, quick kitchen fixes will typically increase the value of your home, like replacing cabinet doors or adding new sinks and faucets. So will adding a home office or an extra bedroom.

 

#4 – The Schools

Even if you don’t have school-aged children, there’s a good chance a future buyer might — and guess what every single buyer with kids cares about? The quality of the schools. That’s why homes located in good school districts rarely decline in value.

 

#5 – The Landmarks

Homes with stunning views of the oceans, lakes, and mountains typically yield a higher resale value than homes without these amenities. When thinking about the resale value of your home, always consider the landmarks. Even if you don’t have a waterfront property, you can still feature valuable landmarks that buyers care about, so include things like proximity to parks, schools, shopping, or dining instead!

 

If you’re thinking about making a move (or know someone who is), I can help! Just send me an email or a text. No pressure, no sales tactics, just helpful advice and the guidance you need!

A Case for Keeping Your Crawl Space Vents Open

Posted on by Robin Hakeman

It’s that time of year in Oregon when the weather is colder and many people worry about their pipes freezing. The first thing they do is close up the crawl space vents with styrofoam blocks thinking this will help. But every home inspector that I have worked with says this is a big no-no.

Here’s why:

Your Crawlspace Needs to Breathe:

Here in Oregon we get water in our crawl spaces – it’s just a fact. It can happen for a variety of reasons; poor grading of the soil around your home or periods of heavy rain creating excess ground water. Wet crawl spaces mean excess moisture which can lead to mold growth below the home and up into the attic. Keeping ALL of your vents open year round will help the air flowing and stop moisture build up.

radon is the highest leading cause of lung cancer in non-smokers:

I’ll say that again. radon is the HIGHEST LEADING CAUSE OF LUNG CANCER IN NON-SMOKERS. If you aren’t familiar with radon (it doesn’t deserve a capital letter here) it is a naturally occurring gas that comes from the soil. Some areas have higher amounts of radon in the soil than others but even small amounts of radon can be harmful to your health. Everyone should test their home for radon gas and take the proper measures to ensure the least amount of radon enters the home. The best way to lower radon levels is to keep your crawlspace vents OPEN! Closed vents mean the radon has nowhere else to go but up into the home. The second way is to ensure that the floor of your crawlspace is completely covered with black 6 mill vapor barrier. The vapor barrier should be in good condition without rips or holes.

Click Here to learn more about radon gas and how to test for it.

 

There is low risk of your pipes freezing in Oregon:

Don’t quote me on saying that your pipes will never freeze or burst – of course that can happen. But we don’t get below freezing often enough to keep your crawl space vents closed up for months at a time. If temps drop below freezing for more than a day or two, fine, go ahead and close them up. But then open them back up immediately after the freeze. Many homes have insulation covering the majority of the plumbing and if you live in an older home without insulation below the floors, consider adding it. Your feet will thank you and so will your energy bills!

Check out my instagram post on this topic & make sure to follow me for more real estate fun!

My client, Tasa’s home remodel

Posted on by Bobby Curtis

In 2018, Tasa, reached out to me because she wanted to flip a house. I didn’t know it would lead to this, but since then, we have spent many hours talking about house remodeling, key improvements, and how to ensure a profitable investment. Just finishing up her third successful home remodel, I wanted to share some of her work with Kara Mack on Afternoon Live. Below are a few before and after photos. For the full 8 minute segment, and more of the work she did to the house, check out the link below.

My Client, Tasa’s, Third House Flip

Multifamily Houses in Portland

Posted on by Bobby Curtis

Today I talked with Kara from Afternoon Live about multifamily houses in Portland. To see the full 7 minute video, click here

Multifamily Duplex In Portland

Here’s an example of a duplex that was for sale in Portland that I thought was a great long term investment.

  • 1950s side by side 2 BR/1 BA multifamily (duplex) with Tuck-under garages.
  • It was already vacant and in extreme disrepair when we bought it.
  • NE Portland- Alberta Arts area. 
  • Current 2 Bedroom rentals are roughly $1600-$2200
  • Current 3 Bedroom rentals are roughly $2500-$3000/month. 
  • We decided to finish the lower level, adding additional bath, bedroom, and bonus living space. Each unit will now be 3 BR/ 2 BA.
    • Better use of space (more people can live in the property)
    • By adding this additional finished space, it will bring in more rental income to cover the cost of the renovation work 
    • That extra monthly income will pay for the additional renovation work over 8-10 years.
  • By updating everything, there will be few if any large maintenance expenses within the first 7 years. This makes profit and loss a little more predictable.

Not in the buying market or interested in multifamily, but thinking of selling your home? Check out my tips here. 

 

Redesigned Laurelhurst Retreat

Posted on by Bobby Curtis

4224 SE Oak St, Portland, OR
Distinguished Laurelhurst Dutch Colonial with grand spaces and period charm on a double lot. This brilliant 2017 renovation by Remodeler of the Year was thoughtfully remastered with entertaining and the entire family in mind. 

Main Floor

1,917 SF of main floor living. Magazine worthy chef’s kitchen with honed marble island, custom cabinets, wet bar and walk-out to the private backyard. Living room with woodburning fireplace, family media room and office with built-ins and formal dining room with hardwood floors.

Upper & Lower Floor

South wing Master-suite with sitting room and dreamy masterbath. North wing with 3 additional bedrooms with double closets and full bath. Mother-in-law suite on the lower level with kitchenette, full bath & separate washer & dryer. Undeniably an exceptional home in Laurelhurst.

 

5 bed | 3.1 bath | 4504 sq. ft. | 2 Car Garage
MLS# 20399469  | Taxes: $14,632 | Lot Size: .21 Acre

Tips For Safely Selling Your Property in a Pandemic

Posted on by Erika George & Kari McGee

It’s March 15th, 2020 and we are at the beginning of a Covid-19 outbreak in the greater Portland area. That might be scary for a lot of reasons but particularly for property owners who need or want to sell their homes this spring, while they are still living in their properties.

Well, stay calm because we have some great tools that will allow us to effectively and safely market your property to a large buyer audience while minimizing the risk of bringing Covid-19 to your personal residence.

Watch our latest video to see how we’re using technology to help buyers decide that they are serious about purchasing your property before they even walk through your front door! And check out an example of our 3-D tour.

Tips for Selling Your Home Faster

Posted on by Bobby Curtis

Professional House Flipper and Real Estate Agent, Bobby Curtis gave tips on how to sell your house faster in this “neutral” market. See tips below or click here to see the full interview on KATU’s Afternoon Live with Tra’Renee.

Price it Right- Sell Your Home Quickly

1.Price it right- don’t hold out waiting for your buyer. It may work on occasion if you have a very unique property- but let someone in the real estate business be the judge of that.

Effective Staging- Sell Your Home Quickly

2.Effective staging. Of the homes that sell within the first week on the market with multiple offers, most of them are staged or appear staged.

Stay In Contract- Sell Your Home Quickly

3.Once in contract to sell your house, stay in contract. Negotiate after they do their inspections.

Hire a Great Agent- Sell Your Home Quickly

4.All of this will be made easier if you are working with a great real estate agent.

For more from Bobby, and some great contractor tips for your next home remodel, click here