LizC Real Estate Investments, LLC | Liz Carpenter

82nd Ave Lot – High Traffic – Owner Carry

Liz Carpenter — Sun, 04 Mar 2012 02:50:16 +0000

No Sign – Great location on 82nd Ave – High traffic area, west of I-205 freeway. Currently Month to Month tenant for RV and auto sales. Owner will carry contract to qualified buyer.

Commercial – Zoned CG. Manufactured single wide office – Long term tenant – Please do not disturb tenant!

Corner Lot .43 Acre – 3 Bedroom 2 Bath Home

Liz Carpenter — Sun, 04 Mar 2012 01:24:15 +0000

Beautifully maintained 2809 sq ft home on almost 1/2 Acre (.43) corner lot. RV parking with 4 car spaces in front of 2 car garage area of 418 sqft. Great fenced yard, fruit trees & lots of garden space. Lots of storage. Very well maintained and updated cabinets, granite counter, Hardwood floors and Carpet on lower level. Large covered deck on main level with space for the BBQ and much more. Large mud room with washer and dryer area & craft room lower level. 2 bedrooms on main floor and 1 bedroom on lower level. Bathrooms on both levels with very large shower on lower level. Two fireplaces one on main floor and basement family room. Family room has 5 X 8 ft walk in closet. There is plenty room for playing with an above ground pool and space for all the Toys for kids and adults.

Builders lots of possibilities for this property -zoning is R2.5 – check with the city for lot division possibilities, etc. Level lot with the house in the front of property & corner lot.

The Coming Rental Housing Wave

Liz Carpenter — Thu, 03 Nov 2011 16:55:38 +0000

The following article by Mark Heschmeyer was sent to me from Co-Star - Commercial Real Estate Information Company (they recently acquired LoopNet).

I believe this to be a very good article on the Market across the country as it stands now for rental property. I would like to mention in Portland our vacancy rates are around 3% and holding. Multifamily sales are looking at cap rates of about 6% and with some at 7% with more deferred maintenance. If you have been waiting on the side line watching the market, this would be a good time to make your purchase.

Please enjoy the article!

The Coming Rental Housing Wave

Protracted Economic Distress in Housing Sector has Created Legions of Renters in New Markets and New Age Groups

By Mark Heschmeyer

November 2, 2011

While widespread recovery continues to elude the housing sector, the
apartment market has become one of the real estate industry’s — and the
broader economy’s — best hopes for a return to the good old days, with
robust property values attracting keen investor interest. And it has
the Great Recession to thank for it.The multifamily market is benefitting from changing demographics and
consumer attitudes toward renting resulting from the growing number of
financially stressed households. The increase in young and newly formed
households that have decided to postpone or even reject homeownership in
favor of the lower debt and flexibility afforded by renting during
these last unsettled economic years.

“It’s an exciting time to be in this growing sector where it is
projected that $1 trillion in capital and 10 million additional
apartment units are needed in the next 10 years as more individuals turn
to apartment living,” said Freddie Mac Multifamily Senior Vice
President David Brickman.

Renters now make up more than 40 million households – about
one-third of total U.S. households, according to Brickman. For every 1%
that the current homeownership level of 66% decreases, one million
individuals become renters.

The changing demographics also show a significant increase in
immigrants, 20-34 year olds, and baby boomers entering the rental
market.

“The bottom line is that the multifamily market is poised for growth
due to strong demand, healthy fundamentals, and limited supply,”
Brickman said. “These trends have renewed interest in the sector and
investors are returning as evidenced by an increase in acquisition and
refinancing activity.”

Another 1.4 Million Renters This Year Alone

Through the 12 months ending mid-2011, the Census Bureau reported a
net increase of 1.4 million households that moved into rental housing, a
4% rise in the number of tenant households in just one year.The U.S. homeownership rate has fallen about 1.5% over the past year
(from 66.9% to 65.9% during the second quarter of 2011) with owner
rates falling by 4.4% (to 21.9%) for those under 25 years of age and by
7% (to 34.7%) for those aged 25 to 29 years.

Apartment rents, which had been flat to falling in many projects
during the 2008-2009 recession, have begun to rise, albeit slowly,
Freddie Mac reported.

New construction starts of apartments in buildings with at least 20
dwellings have picked up this year and in the second quarter were the
highest since the end of 2008.

“New construction starts are slowly picking up and multifamily
lending appears to be rising as well with this year’s origination volume
stronger than 2010′s,” said Frank Nothaft, Freddie Mac, vice president
and chief economist. “In part, the rise in originations is related to
the low-level of mortgage rates, improving apartment-sector economics,
and the return of traditional lenders that had curtailed activity during
the recession.”

Apartment Development Ramps Up as Demand Swells

After a surprising delay, the increased demand for rental housing
has finally led to a considerable uptick in multifamily construction,
the National Multi Housing Council (NMHC) reported in its latest
Quarterly Survey of Apartment Market Conditions.The pace of development activity has increased in most markets.
Two-thirds (67%) of respondents noted considerable activity, either in
the planning stage or actual new construction.

In particular, 20% said developers are breaking ground on new
projects at a rapid clip. The other 47% reported an increase in
pre-construction activities-acquiring land, lining up financing, getting
building permits-but not much actual construction yet.

Even with this increased activity, more than half (54%) think new development remains considerably below demand.”Powerful demographic trends, along with changing attitudes about
homeownership and tighter mortgage underwriting, continue to drive a
shift toward renting, which is fueling a ramp up in new construction,”
noted NMHC chief economist Mark Obrinsky. “While some survey respondents
expressed concern over sporadic overbuilding, others noted that the
lack of construction financing may prevent some developments from
actually breaking ground.”

Rents, Vacancies Benefiting from New Demand

Preliminary third-party data for the third quarter of 2011 suggest
that the vacancy rate for institutional investment-type apartment
properties has fallen and asking rents have now likely risen for six
consecutive quarters, according to Fannie Mae.Vacancy levels are firmly back to historical norms at an estimated
6.5% for the third quarter of 2011. Asking rents also likely rose again
in the third quarter of 2011 by 1% quarter-over-quarter. It appears that
full-year 2011 national average asking rent growth remains robust and
on track to reach 4%, with effective rents perhaps reaching 5%, or even
6% annualized growth, Fannie Mae said.

While the strength of declining vacancy levels and increasing rental
rates will vary by metro area, on a national basis the multifamily
sector should continue to see steady improvement for the remainder of
the year, Fannie Mae said. It expects average asking rents to experience
an annualized increase of 4% and the vacancy rate to stay fairly
stable, perhaps declining to 6.25% by the end of the year.

States with Opportunities

CoStar Group senior real estate economist Erica Champion has been
tracking the changing housing attitudes during and following the Great
Recession.

“For those of us with a special interest in the multifamily sector,
we are chomping at the bit to find conclusive answers to questions that
have been plaguing us since the collapse in the housing market,”
Champion said. “Has apartment demand really been that strong? Yes. Are
there really that many more people renting apartments? Yes.”With the newest U.S. Census data issued this year, Champion has found some answers.

” ‘Robust’ is definitely the word for the rise in rental demand that
took place over the decade from 2000 to 2010. In line with the drop-off
in homeownership that started in 2006, 4.5 out of every 10 households
added during the first decade of the new millennium are renters. This is
compared to an average rental propensity of 34% in 2000,” she said.

The trend has not been evenly apparent from state to state, she said.”Of the states that added renter households at a faster rate than
the national average, some are not a surprise. California and Nevada
have been poster children of the housing bust and they remain
top-ranking states in foreclosure activity, with rates twice the
national average. Investors and developers that have been in love with
North Carolina and Oregon can congratulate themselves for jumping on the
right bandwagon,” Champion said.

“The other states are surprises because they are not necessarily the
top-of-mind locations for apartment development or investment,”
Champion added. “Developers and investors may have overlooked some areas
with promising demand fundamentals. States such as Ohio, West Virginia,
Pennsylvania, and Alabama saw enormous gains in the number of renters -
more than six of every 10 households added over the decade were
renters. Kentucky, Kansas, Indiana, Missouri, and Oklahoma adding more
renters than the national average are also surprises. And there is no
evidence to suggest that this boom is driven primarily by the housing
bust. The foreclosure rate in West Virginia, Pennsylvania, Alabama, and
Kentucky remains one-third the national rate. The rest are on par with
or below the U.S. average,” she said.

“With one in every two new households renting their homes, these
surprise states may present an opportunity worth pursuing to build in a
hidden gem location and, in some, to exercise a first-mover advantage,”
Champion state.

Unmet Demand for Middle Aged

Where Champion sees geographic opportunities, CoStar Group’s senior
real estate strategist Michael Cohen sees opportunities in an overlooked
group.

Few concepts are tossed around more frequently at apartment
conferences than the fact that younger households have the greatest
propensity to rent, Cohen said.

However, while true, “researchers (and investors) who focus
exclusively on the potential impact of the Echo Boomers, are missing a
substantial piece of the overall apartment demand story,” Cohen said.
“The total number of middle-aged households in the U.S. – 35 to 64 years
old – outnumbers households under 35 years old by three to one. In
turn, 20 million, or half the total number of renter households in the
U.S., can be found in this middle-aged demographic.”"Interestingly, as we begin a new wave of apartment construction as
evidenced by a steady increase in multifamily starts, I wonder whether
developers truly understand the contours of their renter base,” Cohen
said. “After all, is it the 22-year-old fresh out of college at the
leasing office inquiring about stainless-steel appliances and granite
countertops? Quite the contrary: more likely than not (well, at least
50% of the time), it’s a middle-aged household.”

North Portland 6 plex – $459,000 – 7.35% Cap Rate

Liz Carpenter — Tue, 24 May 2011 22:08:48 +0000

New Price – Cap Rate 7.35%

1 bedroom 1 bath units on corner of N. Willis and N. Peninsular. Public transit right out the front door of these units. Great for the person or persons who would like to take public transportation. Good rental history with some long term tenants. New energy efficient gas heating system installed 4/2011. Owner bills back for water and heating. Tenant pays electricity. These units have double pane vinyl windows, all electric kitchens, tile floors in front rooms, kitchen, hall and most bedrooms some bedrooms with carpets. Very Low Turnover costs! Laundry income. Do not disturb tenants. Write offers subject to interior inspection.

RHAGP May 2011 – President’s Message

Liz Carpenter — Tue, 10 May 2011 18:19:08 +0000

May 2011

Non Payment of Rent 72 Hour Notice

President’s Message

By Mark Passannante
RHAGP President, Broer & Passannante

Sharon Fleming Barrett Building Dedication

I am sure everyone is now aware that our building dedication to Sharon Fleming Barrett is quickly approaching. I wanted to add my invitation to all of our members to the dedication along with the invitations that have been sent out already. The dedication will be from 1:00pm to 3:00pm on May 21, 2011. There will be a short ceremony at 2:00pm hosted by yours truly. I look forward to seeing you there.

Non Payment of Rent & 72 Hour Form

I also wanted to use this forum to revisit some technical issues with your nonpayment of rent notice (either a 72-hour notice or 144-hour notice). Normally, rent paid to cure a 72-hour notice is timely if it is mailed within the cure period. However, ORS 90.394 provides that a tenant’s rent payment will only be timely if it is actually received by the landlord within the cure period.

There are three things to keep in mind in assessing the timeliness of a tenant’s rent payment. In order for the landlord’s receipt of the rent to be considered the operative factor in determining the timeliness of the tenant’s payment, the 72-hour notice must be served by personal delivery or by secure attachment to the main entrance of the portion of the premises in the exclusive possession of the tenant and first class mail to the tenant at the premises, both the rental agreement and the 72-hour notice must expressly state the location to make rent payments that is either at the premises or where the tenant has made all other previous rent payments in person, and the place of payment must be available at all times throughout the cure period of the notice.

If all of the above conditions are not met, a tenant’s rent payment that is mailed within the cure date is timely regardless of when the landlord actually receives the rent.

For your convenience, the RHAGP nonpayment of rent forms contain a line for you to specify a place of payment. There is no box to check specifying in the notice that the payment must either be received or mailed by the specified date in the nonpayment of rent notice because there is no requirement under ORS 90.394 for the notice to specify whether the landlord is demanding receipt of the rent by the cure date or not. By keeping that selection out of the notice, landlords avoid problems with their notices being invalid by merely making an improper demand. Please keep the above in mind when filling in a 72-hour notice. I generally recommend that landlords accept rent that is timely mailed under a 72-hour notice because a failure of any one of the above factors can result in a failed eviction if the tenant mails the rent timely, but the landlord refuses the payment because it was not received within the 72-hour notice period.

Rates are Low, Inventory High, Now is the time to Buy!

Liz Carpenter — Tue, 19 Oct 2010 20:40:20 +0000

Looking to purchase income property? Do you have a Self-directed IRA or cash earning 1% or less in the savings? Now is the time to take that money and purchase income property. There are good deals to be made and they may not even be short sale or bank owned property. There are multifamily housing opportunities at 7% to 8% cap rates on the market. As you hear everyone saying, “We don’t know what is going to happen with rates next.” I know that you don’t want to wait until it hits bottom for then it may be too late, if it hasn’t hit the bottom already. Don’t miss the time to buy! Call Me if you have an interest and would like more information.

Towne South Apartments, LLC – $995,000 – 7.8% Cap Rate – SOLD

Liz Carpenter — Thu, 09 Sep 2010 22:25:26 +0000

SOLD!

Town South Apartments, LLC

Salem, Oregon

18 unit – Garden Low-Rise complex

7.8 % Cap Rate

Current financials not proforma!

Spacious mix consisting of

6 units – 1 bedroom 1 bath, 810 sqft

12 units – 2 bedroom 1 bath, 840 sqft

Blocks from local stores and other amenities.

Towne South has many upgrades which include, but not limited to New Energy efficient windows, sliding patio/deck doors, front doors, door jams and insulation. The exterior renovation includes, new decking, all new paint and new lighting fixtures have been installed. Most units have newer water heating systems, carpets/flooring and paint.

The swimming pool has new surface, drainage system (complying with the pools/spa laws) & newer pump/filtering system. There is space on the property to add a Hot Tub or Spa or possibly more units (verify with city planning/zoning).

Recreation room includes some equipment.

Laundry facilities on site.

Towne South is within miles of the Salem Renewable energy park, which Sanyo has a solar cell facility, along with other major companies.

Call for Financials

RHAGP disassociates from ORHA

Liz Carpenter — Fri, 25 Jun 2010 21:14:02 +0000

Rental Housing Association of Greater Portland
President’s Message

As discussed in my last message, the board had their meeting this May to consider disassociating from the Oregon Rental Housing Association. The pending decision was announced in the May 2010 newsletter as well as the April 2010 dinner meeting. I was happy to see the attendance of members (other than board members) at the board meeting who provided valuable input into the Board’s deliberation.

After much discussion and analysis of the pros and cons of continued association, the board voted unanimously to disassociate from the Oregon Rental Housing Association (ORHA) effective the date of their dues increase, July 1, 2010. There were two abstentions. Of particular note is that all guests polled were in favor of disassociation as well. Given the decision, I am sure everyone’s next question is what does this mean to you as a member.

First and foremost, the RHAGP will discontinue selling ORHA forms and as of July 1, 2010. After the board resolution for disassociation, RHAGP has contracted with my firm and affiliate member Mr. Jeffrey Bennett’s Firm (Warren Allen) to produce forms for RHAGP to use beginning on July 1, 2010. These forms will be available in the office as of that date for purchase in person, by fax or mail. Online production of the forms will have some delay, but not dramatic. We are hoping to contract with a firm to get online access to our forms before the end of the year and are hopeful this will be accomplished well in advance of that date.

While having the forms provided to the RHAGP was convenient, RHAGP has not had control over the forms it sells. It now does. While we have always worked with ORHA to improve their forms when a problem arose, ORHA always had the final say on the type of forms they chose to produce as well as the format and language used. RHAGP will now have that direct control. We look forward to an improvement of the forms as well as improvement in making changes efficiently and promptly as the need arises.

The other significant change will be in lobbying efforts. Historically, state lobbying has been done on our behalf (with our participation in the ORHA board meetings) by ORHA. While we always had a say in what lobbying efforts should take place and on which side of each bill support should go, it was subject to consensus gathering among the ORHA affiliated members. The RHAGP will now undertake its own legislative agenda in Salem subject to the control and direction of our board of directors. Again, a substantial change but one we look forward to and believe will be in the best interests of all of our members.

Sometimes changes happen. On behalf of the board as a whole, I want to let you know that we believe the change will be beneficial to all of our members and look forward to the new opportunities we have to participate both locally and in the State capital on issues important to landlords.

Wheel Chair ramp access – 2 Bedroom 1 Bath

Liz Carpenter — Tue, 08 Jun 2010 04:03:12 +0000

$725.00 a month -2 bedroom Apartment

Quiet ten (10) plex has a rare vacancy of 2 bedrrom 1 bath one story apartment. The one story apartment has wheel chair ramp for easy access to apartment. Includes stove, oven, mircowave, dishwasher and refridgerator. Vinyl windows and storm doors. Large lock storage unit in the laundry facilities. Garages available for $100 a month. Busline 1/2 block, close to stores, including Safeway & Target. Max line and Fred Meyers center on 102nd within walking distance. Off street parking for 2 cars. Good schools & bus stops 1/2 block.

Water and Garbage paid

Refundable Deposit $ 725.00

application fee $35.00

CCIM Magazine: Fannie, Freddie and HUD loans

Liz Carpenter — Wed, 28 Apr 2010 16:30:13 +0000

From: CCIM Magazine

Government-sponsored enterprises Fannie Mae and Freddie Mac have been a lifeline for multifamily investors, providing liquidity that is sadly missing outside of the apartment realm. “That has softened the amount of value decreases in the sector,” says Dan Fasulo, managing director at research firm Real Capital Analytics. “For prime multifamily, we’re not seeing the type of 40 percent to 60 percent declines in value that we are seeing in the office, retail, and hotel sectors.”

CCIMs say the U.S. Department of Housing and Urban Development’s loan programs may soon overshadow Fannie and Freddie as the darlings of multifamily borrowers. Those programs, insured by the Federal Housing Administration, include 223(f) loans, which can be used to refinance assets, and 221(d)(4) loans for new construction.

Loan-to-value ratios can be as high as 90 percent of construction costs and typically amortize over the 40-year term of the loan, says Jeff Siebold, CCIM, an appraiser and owner of Siebold Group in Caswell Beach, N.C. “This is not about subsidized housing; it is about market-rate apartments,” Siebold says. “Some of the nicest class A or B properties that you see very well might have a 221(d)(4) loan as part of their program.”

Government-backed loans won’t work for every project, in part because they are limited to stabilized properties, according to Brad Miner, CCIM, a CB Richard Ellis associate in Phoenix.

Brokers say cash transactions also are mushrooming. Wealthy individuals concerned about inflation are increasingly interested in multifamily as a conservative investment vehicle, says Robert Vallera, CCIM, principal of Commercial Realty Advisors in La Jolla, Calif. Vallera contends that many investors worry U.S. fiscal policy will soon fuel rapid inflation. “I have closed more all-cash apartment transactions with private investors in the past year than in my prior 25 years of apartment brokerage combined,” he says.