Ted C. Jones Brings Strong Opinions/Humor to Portland Oregon Economic Forecast!

Ted C. Jones, Chief Economist for Stewart Title

•   ”and, I think it’s gonna be alright,
• yes, the worst is over now.
• The morning sun is shining like a red rubber ball”. 

The Cyrkle/1966  http://www.youtube.com/watch?v=hOxLaHPPzzw

  Ted C. Jones, Ph.D.
Senior Vice President-Chief Economist, Stewart Title Guaranty Company
Director of Investor Relations, Stewart Information Services Corporation NYSE-STC  gave a robust presentation today, Thursday February 25th, 2010 at the Columbia Yacht Club to a room full of Real Estate Brokers, Mortgage Brokers and Title reps hungry for information and tidbits of foresight on economic predictions for Portland, Oregon.  There were no “defining moments” or “jarring revelations” at this seminar, but lots of good facts, figures, opinions and observations!  His real estate and economic predictions (which he reminded us were just about “spot on” last year, except concerning interest rates) simply concurred with a lot of other reading and presentations I have attended.  However, he made the material interesting, palatable and interspersed what he called “Ted’s Solutions” to a myriad of problems.  You don’t have to agree with everything but he certainly backed up his opinions and prophecies with a lot of graphs and historical data.   

• Wall Street:  liquidity and Washington realizing that they can’t contol
• Jobs:  he feels the stimulus is not working
• Time-Bomb loans:  now concerned about commercial
• Terrorists attacks
• Pandemic:  like Bird Flu
• Inflation and cap rates going up
• Tax-cuts
• Energy:  US imports 63% of oil
• All the band-aid fixes for real estate, autos, credit cards and banks

Just as a regular citizen trying to reign in a budget and make their finances work, the US must start with decreased spending.  He definitely believes (as do most in the industry) that interest rates are artificially low and will definitely begin to creep up.  He believes we will not see interest rates as low as we are now experiencing in our lifetime again (I guess it matters how old you are).  Those buyers with good credit or cash, a bit of patience and some luck will make some great buys in the existing market.  And, he feels our next crisis will be in the commercial real estate market.  “History doesn’t repeat itself, but it certainly does rhyme!”….Mark Twain.

What’s the Buzz…Tell me what’s a-happening (in Portland Oregon real estate)!!??

“What’s the buzz…tell me what’s-a-happening….what’s the buzz…tell me what’s-a-happening”.  I certainly don’t have a crystal ball, but sure could use one these days!  Perhaps on Craig’s List??? I’m doing a lot of market analyses of Portland properties lately to determine an appropriate possible sales price.  It’s not easy in a market where foreclosures and short sales undercut and undermine the market stats (and expect more of those this year).  It’s often difficult to define that “sweet spot” in the market where you don’t leave money on the table but still entice buyers to offer!  There ARE buyers and there ARE properties selling IF they appear to be a “steal or a deal”.  It is still very much a buyer’s market with the possible exception of well-placed, well-staged and well-priced homes at the first-time buyer price point.  At that entry price point (which is looking oh so much more attractive and accessible than it was a couple of years ago), I have run into some multiple offer situations.  Other higher price points do also move but with much more consideration and due diligence.  The move-up/repeat buyer market moves more slowly and it’s all about price!  The more money at stake, the more enticing the price must be.  With inventory as high as it is, you must consider pricing your home to sell as a competitive sport!  You must out-shine and under-cut the available competition. 

Are the first-time home buyer tax credit and repeat home buyer tax credits helping our real estate marketplace?  I definitely believe that the credits are an incentive.  But, no one should buy a house merely for a tax credit.  However, if a new home was a goal I would most certainly be amenable to “free money” from the government!  I guess if I were thinking I was ready to make a move, I would be hustling to get my house on the market while that stimulus is still available (buyers must be in contract by April 30th and the transaction closed by June 30th).  I do believe that it’s a good time to buy real estate (and put my $$$ where my mouth is by purchasing a duplex this summer).  Interest rates are very low and there is the potential that rates will rise this year.  I’ve also sold one of my real estate investments this year, so “I feel your pain” regarding how much you may have once thought your property was worth  .  Real estate is still a good addition to any well-rounded portfolio and has always stood the test of time (with “time” being the operative word here).  For some stats on how low interest rates affect housing costs, go to http://fabulousportland.com/2009/04/07/to-buy-or-not-to-buy/ and for a great rent-vs-buy calculator, go to http://www.gonorthwestloans.com/mortgageLoanCalc.html .  Investment real estate is a wonderland of positives in my book.  Someone else pays the mortgage, you get multiple write-offs and depreciation on your taxes, you work towards a positive cash-flow with increasing rents over time and you enjoy appreciation of the value of the property (albeit slow in our current environment). 

So, that brings me to appreciation and what can we expect for our recovery?  See paragraph one as I’m definitely in the market for a crystal ball!  I do read a lot about this subject and attend presentations, I’m “in the trenches” everyday and have worked through multiple real estate market conditions since 1985 (remember interest rates at 13%???).  There are ups and there are downs.  Also, remember if you are buying and selling in the same market you are feeling the pain of selling, but enjoying the benefits of buying.  I do see two unknowns in our immediate future:  unemployment and the commercial real estate market and how they will continue to affect our residential supply and demand.  Otherwise, I believe it will be a slow climb.  It could be five years (give or take) before we see a full recovery.  And, what does “full recovery” mean?  I think our minds will be reluctant to embrace another real estate frenzy anytime soon.  So, a slow and steady plod is a more reasonable expectation.  I’m cautiously optimistic about real estate in 2010!  We are likely to see a slight rebound in sales this year as stabilizing home prices and record-high affordability conditions (along with continued low interest rates) draw buyers into the market.  It’s not as sexy or exciting, but I’d always rather be the turtle than the hare anyway.

1031 Tax-Deferred Property Exchange and Who Wouldn’t Want to Defer Taxes??!!

A 1031 Tax-deferred exchange is a real estate transaction involving the sale of one property with the tax on the capital gain deferred because ofthe qualified purchase of another like-kind property in exchange.  For 1031 exchange purposes, the term like-kind property is interpreted as any type of investment property, rather than property owned for personal use.  The 1031 exchange involves a purchase that must close within 180 days of the sale.  There is also a reverse 1031 exchange in which the sale occurs after the associated purchase.  Investors utilize the 1031 exchange to defer taxes by selling an investment property and using the profits to buy one or more new properties without immediate tax consequences.  Both real and personal property can be exchanged but they are not like-kind to one another.  Almost any property, whether real or personal, which is held for productive use in a trade or business or for investment, may qualify for a tax-deferred treatment under Section 1031.  You can exchange an investment property for any other qualified investment property.  In other words, you have a rental house which now has lots of equity accrued and you would like to sell and purchase two duplexes or sell a duplex and move-up to a small apartment building, etc.  As long as they are “like-kind”, it is allowable.  It’s a great way to continue utilizing both the equity in your investments and other people’s money to acquire wealth through real estate investments.  And, who doesn’t like the idea of deferring taxes?  The tax payer has 45 days from the sale of the original property to identify the new property and 180 days to close.  There are relatively strict rules on the procedures for a qualified tax-deferred exchange, so I use an experienced intermediary to make sure the process is seamless and my tax deferral is protected!  You do not have to use all the funds from the original sale in the exchange.  A tax payer/exchanger can choose to withhold funds or receive other property in an exchange, but it is considered “boot” and will be subject to federal and state taxes.  Anyone owning investment property with a market value greater than its adjusted basis should and could consider a 1031 exchange and I would definitely consult your accountant or CPA!  If you’d like a referral to tax-exchange specialist to further discuss options, please contact me. 

I have noticed that investment properties are “holding their own” in the Portland, Oregon real estate market.  Investors with good credit and/or cash are attempting to locate good rental properties.  Being a landlord is not for everyone but the rewards can be great.  If you think about it, you have someone else paying the mortgage, hopefully a bit of cash flow (and the promise of more over time), plus some appreciation (albeit slow in this market) and the opportunity to set up passive income for the future.  Real estate is also a very tangible investment, as you can drive by…touch and see it.  I love that!!! 

“Are We There Yet”??? Predictions for Housing and the Economy for Portland and Oregon!

“I’ve Been Down So Long, It Looks Like Up to Me”**!!!  Today the Oregon State Economist, Tom Potiowsky presented his “State of the Oregon Economy” predictions and updates for 2010!  I read a lot of financial blogs and feeds so I wanted to see if Mr Potiowsky’s predictions corroborated other analysts.  The answer is “yes”!  The era is being called the “Great Recession” (note: not “Great Depression”) due to this being the longest economic downturn since 1930!  According to economists, this recession actually began in December 2007 and has now been deemed “technically ended” for the US in summer 2009 and for Oregon in the fall of 2009!  Mr. P emphasized time and time again in his discussion today that the “technical” ending is quite different than the “feel good” ending.  This “feel good” ending to our downturn will be very personal and much slower to realize.  He predicts that by the 2nd half of 2010 and/or the first half of 2011 we will begin to “feel better”.  And, the key to recovery is continued repair and loosening of the credit markets!

This has been a global recession.  For the US, imports and exports slowed considerably and our CPI (consumer price index) has decreased in ‘09 for the first time since 1955!  Consumers, businesses and governments have restrained spending.  Now there are inflation>deflation>inflation worries.  But, Mr. P did not believe that inflation was a big worry for 2010 and 2011.  Fiscal stimulus and lower energy prices have helped to spark the recovery and there’s still a lot of stimulus money to spend.  Labor has to get higher wages to pay for inflationary prices.

Despite the fact that this morning there were positive numbers for unemployment (10%, down form 10.2%), Mr. P feels that the unemployment rate is a lagging indicator of economic condition.  He expects that there could be more job losses in early 2010.  We should, he believes, pay more attention to job creation!  How many jobs are actually being created?  In the 2001 recession, it took four years for jobs to completely recover.  It may take 5-6 years to get back to our former job rate this time around.

The US dollar recovered briefly but has dropped again.  Mr. P feels that the value of the dollar is a relative value against other currencies….that’s all!  The dollar value is going down to where it used to be and where he believes it should be, at a more natural level.

What happens after we spend all the stimulus money?  What’s behind the stimulus to continue the recovery?  Labor markets may remain weak because businesses will be conservative and reluctant to re-hire until they’re sure this recovery “has legs”.  He compares our recovery to the constellation “Cassiopeia” (the shape of a soft “W”) and there could be a recovery with a slight dip.  In Oregon we hit 12% unemployment in March of ‘09 and down to 11.3% in October ‘09.  For some perspective, we were at 5% in April of ‘07!!  Some of our jobs are gone for good, others are simply in hibernation.  And, keep in mind that unemployment figures do not include those that have quit looking or those that have taken part-time work until they find full-time employment.

Mr. P believes we are at or very close to the bottom and predicts a slow housing recovery with a possible 35% increase in housing starts by between 2013 and 2015.  Metro predicts that our population will grow by one million people in the next 10 years.  The Housing Price Index “Rate of Decline” slowed and California is starting to gain ground.

Leading indicators for Oregon show that the economy has turned, but it will be a slow growth!  We will see more signs of this recovery in the 2nd half of 2010 and in 2011.  Mr. P predicts some positive job growth for Oregon in the 2nd half of 2010 but it could be 2011 before we really start to show positive numbers.  Commercial real estate will remain weak till 2012 with a mild recovery that is absolutely dependent on the credit markets.  Private investor groups will continue to buy up property since credit markets are tight.

Risks to this forecast:

• Credit Markets: There must be credit availability to the credit worthy.
• H1N1 Virus:  He does not see this as a risk as big as the media plays it.
• Export Markets:  Must stay viable.
• Geopolitical:  Some unseen geographical/political event.

**Referencing the book by Richard Forina

How Interest Rates Affect the Bottom Line!

Did you know that a ½% change in interest is approximately equal to a 5% change in sales price? It’s powerful to realize the importance of the relationship of interest rates to your monthly payments.  This is the reason why our present low interest rates are so important!!  When I started my real estate professional life, interest rates were at 13% and when they dropped below 10%, we thought we’d just won the lottery!!!  So, our historic low interest rates coupled with the present market reality of decreased pricing is a serious reason to consider real estate as an investment!!!

All About the Move-Up/Repeat Homebuyer Tax Credit!!

It’s time to celebrate!!!  Not only did the “powers that be” see fit to extend the first-time home buyer (for actual 1st time home buyers OR those that have not owned a home for three years), but they have expanded this credit to include repeat buyers (with certain specific parameters).  Go to http://fabulousportland.com/2009/06/08/free-money-first-time-buyer-credit-update-and-faqs/ for information on the extended “First-Time Home Buyer” Tax Credit and read on for frequently asked questions concerning the NEW extended “Move-up, Move-down, Move-around, Repeat Home Buyer Tax Credit”!!  Here are some facts and figures:

The Worker, Homeownership and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).  The following questions and answers provide basic information about the tax credit.  If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

•1)       Who is eligible to claim the $6,500 tax credit?

Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.

•2)      What is the definition of a move-up or repeat home buyer?

The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.  Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

•3)      How is the amount of the tax credit determined?

The Tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.  Purchases of home priced about $800,000 are not eligible for the tax credit.

•4)      Are the any income limits for claiming the tax credit?

Yes.  The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.  The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits.  The phase-out range for the tax credit program is equal to $20,000.  That is the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

•5)       What is “modified adjusted gross income”?

Modified adjusted gross income or MAGI is defined by the IRS.  To find it, a taxpayer must first determine “adjusted gross income” or AGI.  AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted.  On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form.  For Form 1040-EZ, AGI appears on line 4 (as of 2007).  Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

•6)      If the modified adjusted gross income (MAGI) is above the limit, can a buyer qualify for any tax credit?

Possibly.  It depends on your income.  Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phase-out limits.

•7)      What is an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $235,000.  The applicable phase-out to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount.  If you divide $10,000 by the phase-out range of $20,000, the yield is 0.5.  When you subtract 0.5 from 1.0, the result is 0.5.  To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $6,500 by 0.5.  The result is $3,500.

•8)       How does this home buyer credit differ from the tax credit that Congress enacted in July of 2008?  How is this different from than the rules established in early 2009?

The previous tax credits applied only to first-time home buyers and were for different amounts of money.

•9)       How do buyers claim the tax credit?  Is there a special form or application?  Are there documentation requirements?

You can claim the tax credit on your federal income tax return.  Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount online 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).  No other applications are required, and no pre-approval is necessary.  Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed purchase.

•10)    What types of homes will qualify or the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000.  This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes and houseboats.  The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000/$500,000 capital gain exclusion for principal residences. You cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc), your lineal descendants (children, grandchildren, etc) or your spouse or your spouse’s family members.

•11)    What does it mean that the tax credit is “refundable”?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.  Typically this involved the government sending the taxpayer a check for a portion or even the entire amount of the refundable tax credit.

•12)    Instead of buying a new home from a home builder, can someone hire a contractor to construct a home on a lot that I already own and still qualify for the tax credit?

Yes.  For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house.

•13)    Can a buyer claim the tax credit if the purchase of the home is financed under a mortgage revenue bond (MRB) program?

Yes.  The tax credit can be combined with an MRB home buyer program.

•14)    Can someone claim the tax credit if that is not a US citizen?

Perhaps.  Anyone who is not a nonresident alien (as definite by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.  The IRS provides a definition of “nonresident alien” in IRS Publication 519.

•15)    Is a tax credit the same as a tax deduction?

No.  A tax credit is a dollar-for-dollar reduction in what the taxpayer owes.  That means that a taxpayer who owes $6,500 in income taxes and who receives a $6,500 tax credit would own nothing to the IRS.

•16)    Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?

Yes.  Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding.  Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay.  This money can be applied to the downpayment.

•17)    HUD allows “monetization” of the tax credit.  What does that mean?

It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund.  These funds may be used for certain downpayment and closing cost expenses.

•18)    If a buyer is qualified for the tax credit and buys a home in 2009 (or 2010), can they apply the tax credit against 2008 (or 2009) tax returns?

Yes.  The law allows taxpayers to choose to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). 

•19)    For a home purchased in 2009 or 2010, can the buyer choose whether to treat the purchase as occurring in the prior or present year, depending on which year the credit amount is the largest?

Yes.  If the applicable income phase-out would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.

The Section 8 Dilemma for Landlords!

If you check in on occasion with my web logs and rants, you may have followed the articles written in August of this last summer about a North Portland Oregon duplex purchase and renovation started in August and completed in September.  Go to http://fabulousportland.com/2009/08/10/soi-took-my-own-adviceit-is-a-good-time-to-buy/ or scroll down on the right hand side of the page to the “Archives”>August to read all of the entries.  Anyway, by mid-September we were ready to rent!  I posted online and put out signage and flyers in front of the North Vancouver address, knowing that the popularity of the North Mississippi neighborhood and North Williams corridor would entice potential renters!!  Almost immediately the phone began to ring.  Many of the callers inquired as to whether we would accept “Section 8″ renters.  Section 8 is a division of the Housing Authority of Portland or HAP.  Their mission is dedicated to providing safe, decent and affordable housing for individuals and families who are challenged by income, disability or special needs.  I didn’t know much about Section 8, but was certainly not adverse to learning more.  I met with two young single mothers and was much impressed with their vitality, ambition and personality.  They explained the program and indicated their excitement that I was definitely willing to work with them and HAP!  We started the vetting process only to hit roadblock after roadblock.  Everyone at HAP was very helpful, but their hands are tied by what I perceive to be an antiquated system of establishing rents.  Our duplexes were 3 bedrooms, 1.5 baths and 1200 SF and I had established the going rate for the area to be a certain price point.  In an attempt to be competitive, I go online and compare other properties offered for rent and try to price my rentals a bit below other comparable properties.  So, I really felt I was asking market rent, considering the updated condition and location, or even a bit below market!  HAP’s system includes a process of assigning “points” for certain amenities such as garbage disposal, air conditioning, dishwasher and more but absolutely NO consideration for condition.  This encourages a lack of respect for living conditions and pride in one’s home.  These two young single mothers wanted to provide not just little extras (as a matter of fact neither even cared we didn’t have a garbage disposal) but wanted a pretty and safe and enjoyable home for their families to live.  They loved that the units had been lovingly restored and updated.  I was sorely disappointed, as I too, had raised two children as a single mother and knew what struggles these two vivacious women faced.  I wanted to help but HAP could simply not see fit to pay market rent.  There was an article in the Oregonian regarding HAP attempting to educate landlords about being open to Section 8 tenants.  I believe they must first readjust and update their thinking about how to value rents! By the way, I did quickly re-rent both units for my asking price!!

Portland Duplex Renovation Almost Complete! N. Mississippi/N. Williams Corridor Duplex Ready to Rent!

So, it started with me taking my own advice and purchasing some local Portland, Oregon real estate while prices were challenged.  I bought a duplex between trendy N. Mississippi and the new N. Williams Corridor with an investment partner and we dove into the exciting world of renovating property (you can go back through the “blogrolls” on the lower right side of this web site to see the updates starting the first week of August 2009).  It’s not my first experience and it was everything I expected and MORE!!  There were the set-backs; ugly vinyl tiles glued down over original hardwoods with hell’s version of “super-glue”, being “tagged” by neighborhood kids, everything taking a bit more time than planned….you know, the usual!  However, we are VERY, VERY close now.  One unit is actually ready to show so I planted a “For Rent” sign in the front yard and placed an ad on Craig’s List, as well as some other rental web sites (see:  http://www.postlets.com/rts/2680503 ).  I’m actually showing the first potential renter tomorrow!!  One unit has all the updates (only the doors are not re-hinged) including refinished hardwood floors, new paint, new lighting, new hardware, new lighting, new tile in the kitchen & entries, new vinyl in the baths and they look SO GOOD!  It’s hard work and time consuming but very rewarding.  I hope to find renters that appreciate the work and “real estate love” that went into the remodel!!! 

Here are some sights from an earlier summer N. Mississippi Street Fair:

and music and fun happening at the Lompoc/5th Quadrant and Pix Patisserie on N. Williams and N. Failing:

I love the energy of this area!  It’s been developing for awhile and it’s young and hip and full of life and hope! The location is so great, only moments from NE Broadway, N Mississippi and right on the bike lane to downtown (on the corner of NE Failing where the bike/pedestrian bridge crosses from N. Portland).  Also, easy access at the Fremont on-ramp for motoring commutes on I-5 or I-405!!  I love real estate!!  .  It’s an investment you can touch, feel, get your hands dirty, drive by and enjoy!

Remodeling 101: It Always Takes Longer Than You Anticipate!

If you’ve been catching my notes starting the first week of August with updates on my recent North Portland duplex investment property renovation, then you know we’ve had a couple of minor set-backs.  There was someone who REALLY wanted us to repaint the exterior ( http://fabulousportland.com/2009/08/23/tagyoure-it-oh-well-it-needed-painting-anyway/ )

and the wood floors took a little longer than expected (but the final buffing and final coating happen tomorrow).  They look very good considering the yukky glue that held the vinyl floor tiles onto the hardwoods for all those years! 

Now the painting has begun (I love, love, love the Devine paint color “Peanut” mixed by Miller Paint):

and you can see the beginnings of a bit of front elevation landscaping by Ealie McClay and friend (more to follow on her new landscape architecture company).

Also, Moises Beltran continues the great work on entry tile and linoleum for the baths:

The tile comes from the “Restore: Habitat for Humanity” (more at: http://fabulousportland.com/2009/08/26/great-findgood-for-the-pocketbook-good-for-the-earth/ ) and I found a great deal on linoleum at “Don Frank Floor Covering” (right next to the Portland “Restore” location).  You have to ask for the warehouse stock.  But, I love the look and the cost was $7 sq/yd and they were VERY helpful.  We were hoping to be ready to show potential renters by 09/01….well, that ain’t gonna happen!

Great Find…Good for the Pocketbook, Good for the Earth!

As I continue to chronicle my recent duplex/investment property remodel (see various blogs from the blogroll on the right side of the page starting the first of August ‘09), I love sharing some great finds!  This investment property is located between the hip North Mississippi neighborhood and the transitioning North Williams corridor in Portland, Oregon. My goal is to have the property look as nice as possible (in hopes of attracting great renters who will appreciate the work) without over-spending the budget.  I “guesstimated” around $20k in upgrades as I was initially “running the numbers” on the purchase.  So, we’ll see how close it comes!  There is always the “unexpected” on such a project!

One great find was the “Restore for Habitat for Humanity”!  There’s one in Portland located at 66 SE Morrison and one across the river at 5000 E 4rth Plain in Vancouver.  Many local companies and contractors AND individuals donate leftover tile, carpeting, wood trim, cabinet hardware, lighting, appliances, sinks, toilets, paint and more.  It keeps these items out of our landfills AND allows budget-conscious “scroungers” like myself to search for discounted remnants for smaller jobs.  The tile in the duplex kitchen in the upper right photo was found at the Restore in Vancouver!  And, thanks to Moses Beltran for the excellent tile work!!!

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