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Nick Kramer
  • New to Real Estate
  • West Point, NY
15
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First Investment in Colorado Springs Area - Military

Nick Kramer
  • New to Real Estate
  • West Point, NY
Posted Mar 10 2024, 14:53

Hi Everyone,

I'm currently active duty military about to move to Colorado Springs in the next 3-6 months and I think I'm ready to make my first investment. Over the past several years I've tried to educate myself on the logistics of buying and managing a house as an investment and attempted to learn from other peoples experiences in REI. Currently:

- I'm pre-approved for $275,000 but with my credit I think I can bump that up to around $300,000

- Have $10-15,000 I can put towards a down payment or renovations

- Have access to the VA Loan

- Am saving approximately $1000 a month


Current Strategy?

I've seen a lot of people recommend buying a MFH with the VA loan and then house hack/ make improvements, or if a MFH isn't available, do the same with a SFH and then move out after a year and repeat with a new property. I initially considered looking at properties in Pueblo, directly south of Colorado Springs, since there are MFH's there that are significantly more affordable than in CS. But of course, living in Pueblo would present issues commuting to work and also, from what I've seen and read about, possesses less potential for growth, has higher crime, and will demand lower rents.

I'd love to get a MFH but they're prohibitively expensive in CS and I don't want to get over-leveraged for one, assuming I could even qualify. I've thus been primarily looking in CS for potential SFH's in the $250-325 range (ideally a 3/2), so that I can live in 1 room or basement and rent out the other 2 rooms. My concern right now is being able to cash-flow. Even with $0 down I may be able to cover the mortgage with BAH from the military but then I'm concerned about all the other costs (CAPEX, PM costs, regular maintenance, taxes, etc.). This may be doable with roommates but if I were to move out and rent it to just one tenant, I'm not sure that would be sustainable given current rents for 3/2's I've seen in the area.


An alternative I've considered is renting while in CS and buying an area with a lower cost of living in another part of the country, which of course wouldn't allow the VA loan to be used. I've also been looking at townhomes but I'm not as familiar with how they compare with a SFH in terms of appreciation and rental rates (definitely a weak spot in my education).

I'd appreciate any thoughts or suggestions and would love to hear other perspectives on this!  

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