Buying investment property in Vancuver area (Rochester: real estate market, foreclosure, rent)

[thefoxx]

I have lived in the area for over 35 years and the Woodland city is opening up fast. Land in the Vancouver area has become so expensive over the pasted 3 years that people are moving north to find cheaper land. The appreciation rate for the Woodland city area is 34.9% todate. There are over 300 homes being build as I type this. The drive time to Portland Down town area is approximately 25- 35 min. depending on the time of day and traffic. You have serveral options to drive to Portland from Woodland I-5, I-5 to 205.

[thefoxx]

Originally Posted by Maria Villa

I appreciate your comments. My agent told me that from Woodland to downtown Portland it could take me 25 minutes. I saw my Atlas map and it did not make sense. He is offering this "unique" opportunity of houses next to a river, in a gated community. According to him, once the houses are built, in six months they will double their price. Still I do not see why this would be except for the "uniqueness" of the deal. This is why I want to hear from real people who live around this area.
Thanks

Yes this is a very "unique opportunity" for a chance to purchase a custom, not tract built home on a river with a 7.5 ac. private park. Especially wene just across the street aways there are tract build houses ranging from $300 to $550 thousdand on very small lots and that is before upgrades.In the Vancouver and surrounding areas there is not a subdivision like this. With the current apperciation rate of 34.9% in the Woodland City and a purchase price of $400.000 the gained equity for your purchase for one year could be $139,600 approximately if the apperciation rate continues to hold. This does not take in consideration the river or the priate park in the subdivision. Or the fact the subdivsion is small only 42 homes.What and were can you invest and get this kind of return for your effort in such a short time? Please tell me. I would like to here of something better.

[thefoxx]

Originally Posted by janb

best case would be 35 min (Sunday morning commute, 90% - non-churched area) Woodland is 25 Mi from C. River, Downtown Portland is 5 miles south of river



a bit aggressive... must be a salesperson
in some cases yes, most no. If you build your own home (for $50/sf) and it is in Cowlitz county then possible. If you get on the wrong side of the river (Clark County) + you have a home custom built ($200+/sf) Then no...

Folks are fleeing Clark County as it is a real pain (permitting, taxes, fees, future taxes for light rail + infrastructure) so Woodland has some draw (Most is in Cowlitz County (designated 'distressed')) but the bargains were about 5-10 yrs ago, it is really tough today. I (as well as most other RE investors I know) have just sold most my investment props, and will wait to rebuy during a more opportune time (and it won't be a high $$ spec house on a river ) + current 15% taxes might be the bargain of the 21st century.

good luck

Clark County is not a pain at all and I don't understand why anyone would think or say this. All reports from experts through out the country are saying Vancouver is the place to buy. With the baby boomers moving into clark county and land at a high anything you purchase will be a good purchase. The Woodland area is and has become a very strong area for real estate. Builders have purchased up all of the land that can be subdivided along the Lewis River. Apperciation rates have continued to climb over the past 12 months for the Woodland city and are at 34.9% todate. Anyone who would sell there real estate at this time in an area that tons of people are moving into and rents climbing must be a poor RE investor eek: eek It is RE investors that do not understand and or do not have the money to invest that usually make such statements. Good Luck with your waiting game it has never worked over the past 40 years but, I guess there is a first time. Have you though about writing a novel? Or maybe you should look to the stock market for your freedom!

[thefoxx]

Originally Posted by Tony1790

Cash flow is the historic reason for buying residential property with appreciation as a side benefit. There is NO WAY to have real honest to goodness cash flow on a property that you are buying at $200k to $400k and turning around to rent them at $1200 to $1700 per month, not going to happen, unless you are kidding yourself.

Just as a rule of thumb, I use the 100 rule, 100 x rent = purchase price, some use the 80 x rent rule.

Example $1300 per month rent x 100 = $130,000 purchase price, not going to find even a double wide at that price.

Good luck, I'm a seller not a buyer at this point in time.

Tony

Tony you must not have heard of California and New York etc. People rent all priced properties every day of the week. You must not practice in these dollar amounts or you would know this as fact. Try it some time! Apprecation is the way all RE investors make there money. Cash flow is only one small part of the big picture. If the property does not increase in value what would we call RE investing? I would recommened you take a few RE investment classes to have a greater understanding of RE Investing Before you make such statements. Good Luck!!!!!!!

[thefoxx]

Originally Posted by Maria Villa

This is my first time blogging ever. I am interested in knowing some basics on living in the Vancuver area. What real estate agents say about it sounds too good to be true. How long is the commute from the communities north of Vancuver ( Woodland for example) to Vancuver itself and Portland? Are people willing to live north of Vancouver to have cheaper housing?
I appreciate any insight. Thanks

OF course they are or builders would not be building over 300 home as I write you in Woodland Wa. Woodland is a growing city and the pricing of houses continue to grow in this area.

[Tony1790]

Originally Posted by thefoxx

Tony you must not have heard of California and New York etc. People rent all priced properties every day of the week. You must not practice in these dollar amounts or you would know this as fact. Try it some time! Apprecation is the way all RE investors make there money. Cash flow is only one small part of the big picture. If the property does not increase in value what would we call RE investing? I would recommened you take a few RE investment classes to have a greater understanding of RE Investing Before you make such statements. Good Luck!!!!!!!

And you might want to take a few history classes, recent history even, 90's in CA where there were quite a few people who lost their butts to the price declines that were prevelant at the time. And to the people who have bought recently in AZ, where there have been $100k declines in some areas within the last 12 months and FL where other neighborhoods have seen $50k to $150k declines.

So cash flow is THE issue, as in if you are not positive cash flowing, then you are paying for the tenant to live there and HOPING that you can recoup your monthly loss via appreciation at a later date.

I'll give you one last example before I head off to my real estate class , I was shopping for a new truck the other day and got to talking real estate with the salesman and he mentioned that he lived in the same town that I do and is a new renter. He told me where he lived, it was in a home that I had just sold, when I asked him how much he was paying for rent, my jaw dropped. He was only paying $900 per month, when I owned the house I was getting close to $1200, and I was NEG AM, so I was losing money per month, so I know that the new owner is taking it in the shorts so hard, because he paid more for the home than I did. BTW, the price on that $900 a month home was $220k, now you do the math on that one.

So as you count those chickens before they hatch, just remember that real estate does not "always go up" it sometimes goes down, I'm betting that it's time to go down here too, but as no one know's the future, I'm taking my bet off the table and cashing in my chips.

Good luck with your empire, either way it works out, I've voted with my pocket book and I'm out of this over priced market.

Tony

[Tony1790]

Originally Posted by thefoxx

Fatalism and paronia are conditions for a shrink. might I suggest you call one. You sound as if the real world just doesn't exits. So Sorry for you!

As opposed to a delusional "Realtor, builder, lender *****?? Whichever you are, you need help.

In any regard the posts up to date have been factual and pretty level headed, but along you came and started throwing out insults and talking down to people.

If you are so sure that buying $400k homes that are a half hour to 1 hour drive away from Portland is such a great investment, go buy all of them. Have fun trying to get enough rent to cover those beasts or reselling them in an era of rapidly declining finance sourcing.

Every hear of CA, that jackass remark is pissing me off to no end. The only way those idiots are able to buy those homes are with 100% financing, no money down, no doc loans. And as of mid month March 2007, the amount of lenders that are willing to make those idiotic loans is drying up rapidly.

So have fun "Mr. Investor", most investors that I know are going into a cash position to take advantage of the upcoming dramatic increase of foreclosures that will take place as the ARMS start to reset.

Ah well, we all make our bets, and generally speaking things have been civil, but when a Realtor comes online ands starts stinking the place up, things just go down hill fast

Tony

[Tony1790]

After 2 negative posts,

Here's a positive one, land price's here in Kitsap county went up 1000% percent in about 18 months. in 2004 I could still buy land for $10k per acre, now it's $100k per acre.

That is 1000%, that is very positive growth!!!

I'm also positive that if I owned said increased property that I would be selling. I'm just as positive that I would not be buying anytime soon, unless I tested positive for using drugs on my next pee test.

Have fun all, see you in the funny papers, have a positive day

Tony

[Ultrarunner]

People buy homes for different reasons.

I have two great neighbors, all retires from California. One loves Washington and just had to wait before they could move and the other, his wife is from Washington and after 30 years in California is returning home.

Both families found homes they loved and could afford. Both rented their Washington homes prior to moving. Some folks do plan their retirement and looking ahead.

Both had no illusion that the rent would come anywhere near break-even cash flow. They just did not want their retirement homes empty for an extended period and one renting family, in particular, got a great deal with very low rent in exchange for taking very good care of the property... beautiful home for $600 a month.

Don't forget that some folks do 1031 exchanges and "Need" to find a place to put their equity. Besides, you can sell an out-of state (or in state) rental home, exchange your equity into a nice Washington home, rent the Washington Home for a year or two, then move in, and after two years, all of your equity, up to 500K for a husband and wife would then be tax free on sale.

Right now I know another SF Bay Area family that will be moving next year to the home they bought in Port Orchard. Their daughter married someone from Kitsap and the parents want to be closer to their grandchildren.

After all Washington is a beautiful place to live.

[magrack]

Originally Posted by Tony1790

.....I'm betting that it's time to go down here too, but as no one know's the future, I'm taking my bet off the table and cashing in my chips.

...... I've voted with my pocket book and I'm out of this over priced market.

Tony

Not that my opinion means anything, but I think you're right.

One of the factors influencing my retirement date was selling my home at a point when I could realize the most "profit".

I originally thought that 2009 might be the best time, but instead decided that Dec 2006 was the best I was going to see for that particular home/location. Had I have been willing to wait for seven years, I maybe would have done better, but I wasn't willing to invest that kind of time.

I think watching the CA housing market very closely is one of the keys in RE investment strategy for investors on the west coast because of the potential impact.