What’s a Faster Return on Investment: Renting or Flipping real estate?

Here’s answer I wrote recently to that question on Quora:

 

I’d guess flipping shows the greatest short-term potential, but as with most investments return is related to risk, and there is certainly risk in flipping. For example, what if in the remodel process you discover something not in your original estimate? What if the market turns between the time you buy and finish the remodel? What if the adjacent property is bought for something undesirable – pig farm, shopping center, fast-food restaurant, 10-story condo or apartment

Buying something to rent is lower risk but you need to be in it for the long haul. Investors I’ve worked with look at it for a minimum five year project and, depending on cash flow and their financial situation probably longer. The biggest single advantage to buying investment property is in the depreciation, but that’s not of as much value if you don’t have other income on which it can offset your tax bill. Cash flow depends as lot on how tight the rental market is. Portland right now is super-tight, but the City of Portland also prevents no-cause evictions and/or rent increases of more than 10%/yr without paying relocation costs to the tenant which range from $2900 (1-BR or SRO) to $4500 (3-BR or more).  This does not apply to Portland area properties outside the Portland city limits

If you’d like the same patient, professional help I’ve given other real estate investors, please contact me. 

 


Posted on June 20, 2018 at 12:55 pm
Dave Sutton | Posted in Home Buying, Portland Real Estate, Portland Real Estate Statistics | Tagged , ,

I’m proud to be a small part of Windermere Foundation’s $2.2 million 2017 grants.

Here’s where it all went…


Posted on March 28, 2018 at 4:27 pm
Dave Sutton | Posted in Home Buying, Home Selling, Portland Events & Activities, Portland Real Estate | Tagged , , , , , ,

The Best Mortgage Information comes from?

With mortgages, there is no “one-size fits all”.  Mortgages (and the rates) vary according to your personal situation: income, debts, down payment, credit score and so many more items. Your best source for mortgage information is a local, experienced, mortgage broker.  If you don’t know one, contact me for an introduction to my preferred lender. 

Fannie Mae, which indirectly finances the fast majority of mortgages in the US, recently did a study on the most influential sources of mortgage information.  Here’s what they found

This shows we have a lot of smart people in this country.  Almost one third relied on a mortgage lender.  Slightly fewer named their Realtor.  Before I get too flattered with that, a Realtor is not the best source of mortgage information.  If you ask me about mortgages I’ll tell you exactly that and introduce you to my preferred lender, who is a mortgage broker.  Next most often used, family and friends, may be a good source if they’ve recently financed a home purchase (but the best mortgage for you is almost certainly not the same as the mortgage your family or friend got). The best source remains a mortgage broker. The reason is that mortgages are so varied and complex (and changing) today that you have to be in the business every day to have good, up to date, knowledge of what’s available that best matches for a particular borrower.   A mortgage broker has access to dozens of mortgage sources and probably works with 8-10 on a daily basis.  They are the best place to find the best mortgage for you.  


Posted on January 11, 2018 at 2:22 pm
Dave Sutton | Posted in Home Buying, Home Mortgage, Portland Real Estate | Tagged , , , , , , , , ,

Winter issue of Windermere Living is here

In the winter issue of Windermere Living, we highlight some of Maui’s top spots and adventures. We also go behind the scenes with celebrity chef Giada de Laurentiis, who reveals her top five tips for cooking pasta. And don’t miss the new Destination GPS, which spotlights some of the vibrant communities where Windermere has offices. And of course, the homes. Pages upon pages of beautiful homes in Washington, Oregon, Utah, Colorado, California, Hawaii, and Mexico.  Click here


Posted on November 29, 2017 at 3:24 pm
Dave Sutton | Posted in Home Buying, Home Selling, Portland Events & Activities, Portland Real Estate | Tagged , , , , , ,

Five Tips to Prepare Your House to Sell Faster for More

Staged homes sell faster and for a higher price. If sellers who list with me prefer, I provide a complimentary staging consultant who will show you how to stage with your own furniture. The four other items in this article are also worth the time & cost. If you’d like to know what your home might sell for, contact me. No obligation, no pressure.  

 

 


Posted on October 19, 2017 at 8:13 pm
Dave Sutton | Posted in Home Inspection, Home Selling, Portland Real Estate | Tagged , ,

Home owners #1 complaint – should have bought bigger home

We continue to buy ever larger homes, now average 2700 SqFt (up 1,000 from 1973).  41% of renters wish they’d bought.  Full details here.


Posted on July 19, 2017 at 11:25 am
Dave Sutton | Posted in Home Buying, Home Mortgage, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , , ,

Triple your down payment money – free !

I just learned of a new down payment match offer from Guild Mortgage, the largest local mortgage lender in the NW.  It’s really simple: you put up 1% of the purchase price of a home and Guild makes a grant of 2% so you qualify for a conventional 3% down payment mortgage.  Yes, you just tripled your money.  You can buy a $350,000 home with only $3,500 of your money down (plus closing costs).  You could buy a nice $100,000 condo with $1,000 down.  There’s even more good news in the fine print in the detail flyer my preferred lender, Kelly Parkman at Guild, gave me today

2% Down Payment Grant

And here’s a short video of Kelly himself explaining it.  We’ve worked together for five years and I’ve never seen him so excited.  

Contact Kelly at 503/528-9800  or KParkman@GuildMortgage.net or contact me and I’ll help, too  

 

 


Posted on June 6, 2017 at 3:58 pm
Dave Sutton | Posted in Home Buying, Home Mortgage, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , ,

First time buyer? Ask me about a no-down payment mortgage.


Posted on May 31, 2017 at 2:41 pm
Dave Sutton | Posted in Home Buying, Portland Real Estate | Tagged , , , , , ,

So you want to downsize?

If you’re like me and my wife, you have a lot of “stuff” (for lack of a more pleasing word) that will simply not fit in a downsized home.  I frequently help  buyers who want a garage only to store “stuff”.   The time-tested method is, of course a “garage sale”.  But they are subject to the whims of the weather (if it rains the day(s) of your garage sale, you won’t sell much) and while summer in Portland is usually dependable for decent garage sale weather, the other three seasons are a gamble. And if you don’t have a yard or driveway?

Second place is certainly Craigslist.org but I also found an article click here that lists several competing apps as methods to sell that unwanted “stuff”.  Enjoy, and call me when you’re ready for the downsized home or if you’d just like an idea of what your present home would sell for.

 


Posted on May 19, 2017 at 11:00 am
Dave Sutton | Posted in Home Buying, Home Selling, Portland Real Estate | Tagged , , , , , , ,

Nine Ways to Make Your House More Photogenic

Nine good points, from today’s NY Times.  In my 14 years experience staging has two advantages for the seller: 1) higher sale price and 2) quicker sale.  Many times staging can be done with the seller’s own furniture, as with this condo I recently listed which sold for 13% over list in a week.

 


Posted on April 16, 2017 at 8:12 pm
Dave Sutton | Posted in Home Buying, Home Selling, Portland Real Estate, Uncategorized | Tagged , , , ,