I am 26 a Denver native and homeowner. I bought a condo in 2015 that I have rented out for 2 years and recently moved back into. I want to start investing and look into getting multi units. I have no clue where to start or how to go about this. The market has changed and things are extremely higher then when i bought in 2015 and it just seems unaffordable.
Any advice on getting started in this market would be extremely helpful! Thanks!!
Updated over 2 years ago
Denver Not Denvet Lol
Hi @Lyberti Reid ,
First off, congrats on owning a place in Denver. I know a lot of people thought it was crazy to buy in 2015. Now look who's crazy. You got a good chunk of change in equity I bet. (Now, we see the negative side of this as well, as we work with a lot of first-time homebuyers who are wondering if they'll have to choose between either renting forever because home prices are too high or moving out of the city they love.)
I digress ... there aren't a lot of "secrets" to affording in this city. Have you talked with a lender yet? That's the best first step. Don't speculate on what you can afford. Get the hard numbers. There are some good FHA programs with a low-downpayment for multi-units if you live in one of the units.
Now if you don't qualify for a multi-unit here in Denver, you've got some options:
-- Look in Colorado Springs where the prices are more reasonable (somewhat). And you can do short-term rentals down there in any property. We have a lot of clients doing well with that.
-- Heck, just buy a straight-up SFH in COS. Rent it long-term or short-term. They're dwindling, but if you're patient, you can still find some small little spaces in the low-to-mid $200s.
-- Partner with someone here in Denver to buy a multi-unit. Pool resources and see what can happen.
-- If all else fails, what about buying another small condo? My wife and I own two small condos. I think as young people continue to want to live here, they'll need a place to rent, and they'll want the smallest (read: cheapest) place they can find. I like small studios for that reason.
-- Have you considered moving again to take advantage of the low down payment options in a primary residence property?
I wish you luck!
@James Carlson Very Good Points! I Haven’t Really Thought About COS But That Is Something I Am For Sure Gonna Look Into! Thanks!
Awesome. I don't mean to step on any toes if you already have an agent, but if you don't and want to chat to see if I'd be a good fit to help, give me a shout. Cheers.