Tag: real estate tips

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!

How to buy a Duplex with FHA 3.5% Down Payment

Posted on by Shannon Dooley
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