Buying First Investment Property in Denver, CO

Buying First Investment Property in Denver, CO

Real Estate Investor · Denver, CO · Member since 2011 · 12 posts · 0 votes

I am currently trying to find my first investment property in Denver, CO. My hope is to rent to students from a local seminary. My parents have successfully had a home rented for 25+ years using this strategy. I have $30,000 to put down, this includes closing costs and repairs. I have been searching for a few weeks but I'm not sure I have the right strategy. I am looking for move in ready because I want to have it ready for the new students coming in August. Am I breaking all the rules not waiting for a fixer-upper?

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Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
15y

There are no rules as long as you can make money. The condition should not matter if the numbers are good.

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  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    Do you know how to run the numbers? Do you want to do what your parents did?

    Certainly if you have 25-30 years to let it pay-off and have a free and clear place like your parents did, then the initial purchase condition means less-thinking long-term-then it would if you are focusing on a short-term buy and hold.

    For many 1 long term rental makes great sense and the details are less important than the benefit you can have in 20 years IMO.

  • Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    15y

    There are no rules as long as you can make money. The condition should not matter if the numbers are good.

  • FL · Member since 2009 · 2k+ posts · 357 votes
    15y

    Hello Annette,

    If your not familiar with the 50% and or the 2% rule as a guide, I suggest that you spend some time reading this:

    http://www.biggerpockets.com/forums/52/topics/18371-help-me-understand-this-deal-and-5-2-rule

    Raymond

  • Real Estate Investor · Denver, CO · Member since 2011 · 12 posts · 0 votes
    15y

    I am also considering some condos. There are tons available in my target area, but I'm not sure condos are a good choice for an investment property. I'm guessing they won't build much equity over time? My original plan in investing was to buy and hold something that I could build equity in and then use that to finance another purchase and so on.
    Condos:
    Cons, HOA, not a good long term investment.
    Pros, Nice amenities to attract tenants, no exterior maintenance.

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