Looking for my first investment deal

7 Replies

Hi BP Family!

My name is Toni, and I am a newbie to the real estate investment game that lives in Denver, Colorado. I am looking for investment properties, but Colorado is a bit pricey. I am trying to find some leads or wholesalers who could help me.... along with any other investors who could give me some helpful tips or may be willing to partner up. I am also opened to hear of any other good areas close to these that I may be overlooking that have a good return. I'm also not oppose to out of state deals either. I am excited and looking forward to hearing from you all!

Hi! Try searching facebook groups for investors in your area "Colorado real estate investors". Many wholesalers and investors post deals there. It might be a good place to start and to get an idea if you even want to invest there. Good luck on your REI journey!

@Allemreh A. Smith-Daniels Congrats on taking the first step!  I wouldn't give up entirely on deals in Denver metro. It depends on your goals. You can easily get higher overall returns here compared to other states/cities, especially with our appreciation rates the last 50 years on average. 

There are still deals that work, but you won't get necessarily the get highest cash flow due to the higher initial purchase price. If you want cash flow, you can still achieve it with 3 bed/2 bath condos out in Aurora, CO on Section 8. Or, if you don't like HOAs, another strategy that has worked for myself and other investors is renting by the the room in a large single family house in Arvada/Westminster/Northglenn/Thornton area. Both of those strategies still work today in August 2021 in Denver metro. Another strategy is buying a primary residence with a basement apartment and living upstairs and Airbnbing downstairs. That won't bring in the highest cash flow, but it would minimize your cost of living in a premium area and maybe even live for free. 

Thus, there are many strategies that work today. 

If you are looking at premium areas only, those are much harder to cash flow. 

@Allemreh A. Smith-Daniels

I can't tell from your post whether you already own where you live. If not, I am a big advocate of your first "investment" being a primary residence. Yes, Denver home prices are high, but so is Denver rent prices. That "rent" might as well go to building some equity. Plus if you buy out of state, it will have to be an investment property, so you have to put 20% down. Even if you find a cheaper market where you can pick up a $100,000 house, you're still putting $20,000. If you buy a primary residence in Denver, that $20,000 could be 5% down for up to a $400,000 primary residence. 

Don't be afraid to go small. I'd try to find, as Jeff said above, a 2-3br condo that's on the lower end. House hack by renting out the other room or two to offset your mortgage. Save that money and put it toward your first true investment later.

Just my two cents. Good luck!

@Allemreh A. Smith-Daniels

Hey, Toni! Welcome to real estate investing! I personally got started this year and have already learned so much from the BIggerPockets community.

Jeff and James have hit the nail on the head if you are looking to stay in the Denver area. Yes, Denver is pricey BUT, the market has started to cool ever so slightly. A fellow realtor on my team even got a property UNDER the asking price last week! Jeff is a great resource when it comes to getting started specifically in the Denver area and I know he has seen great success with the house hacking model!

@Allemreh A. Smith-Daniels

Welcome! I know this sounds like an echo but I am going to second both  @Jeff White and @James Carlson . They know their stuff! Even better, all of the types of properties mentioned above can be easily found right off the MLS with just a few search filters vs. going through wholesaler trying to find off market deals. Some builders are even jumping onboard and building town homes that are set up ready to house hack!

Best of luck!! 

Hello,  Thank you all for the advice.  

@Lindsey Clark I am on Facebook in some groups.  Do you have any that you would like to suggest that I check out?

@Jeff White Thank you for all of the strategies ideas.  I have been looking in Aurora but believe that I'm probably not looking in the right parts of Aurora.  Any suggestions on zip codes I should be looking into?

@James Carlson I do currently own my own home and am currently renting out the basement.  So I guess I am looking for my second deal?  I do like the renting out rooms idea and I will do some research on here (BP) to see how I should go about doing that successfully.

Again thank you all for your advise and positive vibes!