What is radon?

Radon is a naturally occurring radioactive gas that comes from the breakdown of uranium in the soil. Radon is what is called ionizing radiation emitting very destructive alpha particles. These alpha particles destroy sensitive lung tissue and can damage DNA causing cells to become cancerous. Radon is the second leading cause of lung cancer killing 20,000 Americans each year. It is the leading cause of lung cancer among non-smokers. Radon only becomes a health issue when it is trapped within homes and buildings. Methods for removing radon from buildings are simple and affordable. The most recommended method for radon mitigation is called sub-soil depressurization. Simply put, the system uses an inline fan and 3-4” pipe to suck the soil gas (and radon) out of the soil under the building.

Why is radon testing important?

The EPA recommends that every home be tested because there is no way of knowing if you have a radon problem unless you test. After thousands of tests each year we have learned the areas of Portland and SW Washington that are “Hot Spots,” but you just cannot tell from one house to the next if radon is present in unhealthy levels. A short term test is always recommended first to get a 2 day snap shot of the radon levels to be sure there is not high radon levels. It is also recommended to follow up with a long term (91 days to 1 year) test like an Alpha Track test, because long term average radon levels are the most accurate representation of your exposure in the home. A short term test requires “Closed House Conditions” to be accurate and the radon levels often fluctuate seasonally, so the best time to short term test is in the cooler seasons when the radon levels are higher.

When should a home get tested?

A home should be tested as soon as possible and particularly in the cool months. When running a long term test you do not have to maintain closed conditions. You can live in the home as you normally would and at the end of the long term test you will have an average based upon many months. Short term charcoal test kits are typically under $15, and long term Alpha Track canisters are about $30. This price included return shipping and lab analysis.

Short term radon testing has become very common in real estate transactions and the preferred method is using a continuous radon monitor (CRM) because you don’t need to wait on your radon test results, you get them immediately upon picking up the radon monitor. This is especially important when there is a 10 day inspection period and you need to figure it out quickly. These short term tests typically cost $150. These tests also come with a nice report printout and hourly radon levels.

What happens if a radon test comes back high?

The EPA recommends mitigation at or above 4.0 pCi/L, whereas the World Health Organization (WHO) has an action level of 2.7 pCi/L. The EPA also recommends that people consider radon mitigation when the levels are between 2-4 pCi/L. During a real estate sale the magic number is typically 4.0 pCi/L, but that is just an industry standard. There is still significant risk for lung cancer with long term exposure at 4.0 pCi/L. The estimates based upon scientific research is that a 15 year exposure, 12 hours per day at 4.0 pCi/L will result in approximately 7 in 1000 lung cancer deaths! When we install our mitigation systems we guarantee them to keep long term average radon levels below the WHO action level of 2.7 pCi/L. This performance guarantee is unconditional for a period of 10 years and transfers to anyone living in the home.

What is mitigation and how much does it cost?

Radon mitigation systems are typically around $1600 in our area and can go up a bit for more elaborate sub-membrane depressurization systems in crawlspace homes. Many basement or slab on grade homes are easily mitigated with a sub-slab depressurization system by drilling a hole through the basement floor, sealing a pipe to that suction point, installing an inline fan to create a vacuum on the soil, and then running the pipe to above the roof line to meet code requirements. These systems, when designed properly by a radon professional are very effective, very quiet and well hidden for aesthetics.

What can be done to reduce radon in the home?

In the Summer months it can help to have fresh air coming in and out of the home, but what about when it gets too hot or too cold out and we shut the windows and turn on the air conditioner or furnace? Fresh air is always a good thing, but it will not solve a radon problem. The best plan is to remove the source via soil depressurization.

What is the accepted level in the air for Portland?

The national average radon levels in the ambient air are about 0.4 pCi/L, or about 1/10th the EPA Action Level. Often times homes with fairly porous soil types can be mitigated to ambient air levels! We have even seen our systems even mitigate the neighbors home next door.

Can you buy a reliable testing kit at the store?

Yes you can, and make sure it is an EPA approved kit. Read the fine print though because often times these store bought kits do not include shipping or the lab cost, so you may pay some hidden fees. The America Lung Association sells radon test kits and www.radon.com is an accredited lab that also sells kits directly to the public.

What is the benefit to using a trained professional versus buying a kit?

Anyone can set up their own radon test according to the instructions and following EPA approved protocol. It is not difficult at all. If you are in a time crunch or just want to make sure it is done by a certified radon professional then you should consider hiring one.

The full article can be found HERE  at the All Things Real Estate website.

The East Side was involved in the settlement of Portland from its beginning. James B. Stephens arrived in the mid-1840s and settled on the east bank. In 1850 he received title to a 640 acre donation land claim that included much of what was to become the City of East Portland.

The settlement grew and, with the arrival of the railroad, it became a city in 1870. A major facility for the treatment of the mentally ill and destitute was built in 1868 by the Dr. J. C. Hawthorne. The nearby east-west street was named Asylum Avenue and later was renamed Hawthorne Boulevard in honor of this civic leader.

The Lewis and Clark Exposition in 1905 put Portland on the national map and led to a large increase in population that expanded in the east side.

Zoning came to Portland in the 1920s and began with only four zones for: homes, apartments, businesses, and industries.

The residential area in Buckman began at SE 7th Ave. and over time, became zoned for apartments. World War II brought an influx of shipyard workers that caused a shortage of housing and many large older homes were subdivided into rooming houses leading to their misuse and deterioration.

The area from SE 7th  to 12th Avenues contained many nineteenth century Victorian homes that became victims of the expansion of the industrial district.

The automobile was replacing the trolleys and traffic and congestion led to the widening of east-west arterial streets. In the post war period, Buckman was in decline and the neighborhood became one of the depressed areas of inner Portland. There was a lack of investment which encouraged speculative interests to acquire properties east of SE 12th Ave. with the expectation of further commercial expansion.

In the mid 1960s, the Johnson Administration initiated the Great Society Program and the War on Poverty. One of the requirements of these federal programs was the involvement of low income residents in decisions about growth and change in their neighborhoods.

The Portland Development Commission created SE Uplift to provide help with the rehabilitation and assistance. This led to the revival of the inner SE neighborhoods as greater interest developed in the area.

Planning was a vital part of the work, and it took the Buckman area several years to finally get funding for its neighborhood plan and the Buckman Community Association was created in 1971.

At the same time, local planner John Perry was hired to facilitate the Buckman neighborhood plan. Even though it was not finished, it identified the basic needs of the neighborhood.

The main goal was to stabilize the neighborhood through the re-zoning of much of the area back to single family residential.

A committee was formed to study the rezoning of a small four block demonstration area and upon its completion, the city decided to proceed with the rezoning of larger areas.

The first new row house project in Portland was completed in the 1970s on a half block site that was originally to be just another two story apartment complex. This happened through the advocacy of the neighborhood association. It was designed by neighborhood architects and the units were purchased by people in the neighborhood.

The early 1980s began with the closure of the Washington-Monroe High School. The progressive neighborhood association proposed that the school should become a much-needed community center and affordable housing.

Soon after the second Buckman Community Congress, the REACH Community Development Corporation was created. REACH is an acronym for Recreation, Education, Access, Commerce and Housing. It was not successful in obtaining the rights of the vacated high school, but it went on with various housing and development projects and today REACH is a leading multi-million dollar regional success.

Neighborhood Plans became a priority in the Bud Clark administration and the Buckman Plan was one of the first to be completed. It was a 15 month process that began in 1989.

After many public meetings and at least four preliminary drafts, the final document was approved by city council in 1991. It provides a comprehensive description of the Buckman neighborhood and contains many objectives and strategies that would make Buckman a desirable Portland neighborhood again.

The Central Eastside Industrial District has always been an important part of Buckman. In 2006, it became an urban renewal district. This provided the implementing tool and resources to act on several major objectives of the Buckman Neighborhood Plan.

Among them are the Vera Katz Eastbank Esplanade, the first trolley on the east side of the river in sixty years and progress toward the realization of an East Side Community and Aquatics Center, along with many improvements to the industrial and warehouse areas.

Buckman neighborhood continues to be actively involved in Portland’s growth and change by providing a forum for neighbors to discuss their issues and meet those that represent their interests.

Homeless concerns, the Washington High community center, the comprehensive plan, the new mid-rise apartment buildings, parking issues, and many other challenges engage the association members.

The annual Buckman Picnic takes place Sunday August 14 from 4 to 8 pm at Col. Summers Park, SE 17th Ave. at Taylor St.. The picnic is a good opportunity to meet current association member and Buckman neighbors while and enjoy food and entertainment.

The original article can be found HERE at The Southern Examiner website

Text by Toija Beutler, Attorney/Owner, Beutler Exchange Group, LLC

1031 is an incentive program for the Investor who owns rental properties, commercial properties or investment land. When the Investor sells they can defer the payment of the capital gains tax … as long as they work with their real estate agent to find and buy a replacement property and comply with the 1031 rules.

1031 builds wealth

Because the Investor doesn’t have to pay tax on the gain, more cash is available for the purchase of the next bigger and better property.

The definition of “like kind” is the best feature of 1031. All real estate is like kind with all other real estate as long as what is being sold and bought is rental, commercial or land held for investment.

Example: The Investor can sell investment land (non-income producing) and buy a residential rental (income producing).

Example: The Investor can sell a residential rental and buy a commercial property.

Very popular example: The Investor can sell a residential rental and buy a residential rental that will become either a second home or a primary residence — after 24 months of seasoning as a rental.

This frees up the investor to purchase a property that better suits their personal or business goals. And, because 1031 is federal law, the Investor can sell in one state and purchase in a different state — thereby “moving” their investments around the country.

Yes, there are rules, many of which will be surprising to the Investor.

Deadlines

The Investor must close on the new property within 180 days of closing the sale of the old property. The worst feature of 1031 is that they only have the first 45 days of the 180 to identify the replacement property. Most Investors can only list three properties and they must buy from the list. 45 days is an exceedingly short time in which to find suitable property, especially with the current limited inventories.

Non-Qualified property

1031 is not for second homes, flips, new construction or land held by a builder or developer. These are personal use properties or inventory properties and not eligible for the tax deferral.

Reinvestment rules

To get the best result the Investor will apply the net cash from the sale toward the purchase of the new property and obtain a new loan that equals or exceeds the loan on the old property. This makes sense when you consider that the Investor, owning and selling a rental house, has $300,000 in the American economy. If they sell and pull that investment out of the American economy, they have to pay tax on the gain. If they don’t want to pay tax on the gain they have to drive $300,000 back into the American economy, whether using their own cash and/or financing.

Exchange Process

The exchange company prepares specialized documents for the Investor to sign in closing as they sign the deed to the Buyer. There will be similar documents at the closing of the new property. It is the exchange company’s paperwork in those closings that creates the exchange and tax deferral. The following spring the accountant reports the exchange on the tax return.

Supporting players

Consultation with the Investor’s accountant will confirm whether an exchange will benefit the Investor.

Consultation with an exchange company, sooner rather than later, is essential to understanding the rules and common pitfalls. Exchange companies do not charge for this consultation. Their fees are typically flat rate and charged at the time of closings.

Consultation with the Investor’s real estate agent is critical to understanding the market and options that will be available before and during the 45-day identification period.

Challenging scenarios that particularly require consultation:

1. Wanting to buy from a related party.
2. Breaking up or forming partnerships at the time of an exchange.
3. Making improvements as part of the exchange.
4. Closing on a new property before closing the sale of the old — a reverse exchange.
5. An installment sale of the old property.

The best exchanges not only shelter tax but also achieve important business and personal goals.

The original article can be found HERE at All Things Real Estate Magazine’s website.