I'm a real estate investor newbie! Long story short, I'm from Memphis, TN moving to Denver, CO in a few weeks. I'm in nonprofit management, so you can imagine why I MUST acquire other forms of income to achieve financial independence. I'm looking to buy my first rental property. Of course, the Memphis market is totally different from the Denver market. Ideally, I would love to house-hack while in Denver. However, based on my finances, I don't think I can afford a property over $135K (I've got to check with lenders to confirm). My question is would it be wiser to purchase property in Memphis and manage it long distance or is there any option for me to buy decent property in Denver to house-hack? Any guidance would be greatly appreciated!
I house-hacked a house that I still own in Aurora, CO right next to Denver. I own it as a rental now. I believe it is best to buy something where you are going to leave as your first purchase. Also, if you are going to live on it, you can get a low downpayment and a low interest rate, if you are not going to be leaving in you will have to put 20% down and have a much higher interest rate. I am a bit unplugged from the Colorado market since I moved two years ago but at the 135k price point your only options if you want to be at a reasonable distance of Denver it would be condo. Hope it helps.
@Sheronda Nichole Williams You could split an investment with another investor. I know a company that has all the legal paperwork to do so. You could live in one side of a duplex and have your partner rent out the other half. You could also rent your half out, but if you lived there first you’d get a better rate.
@Sheronda Nichole Williams - $135k will not get you very far in the Denver metro area. You might be able to pick up a one-bedroom condo in Aurora that is not updated and not in the best area. I would try to find a lender that can help you qualify for a little more! If you can get a signed lease before closing perhaps?