Rentals 4 and 5 closed today

39 Replies

I closed on Rentals 4 and 5 today.

These are two condos in the same complex where we already have Rental #3.  These are solid, base-hit condos.  We didn't get an awesome deal on either one, but neither are the deals anything to be ashamed of.


#4 is a 2 bed, 1 bath condo that is turnkey.  Bought it for $127,000 and have had lots of interest and showing on it at $1250/mo rent.  Expecting about $430/mo cash flow.  I have applications in and am just waiting for the reports to come back from Smartmove now.

#5 is the same floor model as #4 (and #3, coincidentally).  Bought it for $119,500 and it's also going to rent at $1250.  Expecting about $450/mo cash flow.  Needs some paint and some other minor repairs that will probably all come in at less than $1000.  Have applications in on this one as well (hurry up people, click the button, send the report!)

2 years ago, these units were going for $40,000.  Last December, we picked one up for $85,000 and now, 6 months later, they are at $120 - $125.  That's the Denver market right now.  There is already another unit listed at $130 and it'll go for that, I'm sure.  I'm not counting on appreciation, but if I had to speculate, I'd say these will be at $150-$160 in another 8 months.

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

@Linda Weygant - Congratulations! You are on a roll. Now it's time to focus on #6 as you already have 4 & 5 sewn up with tenants waiting to move in.

What are the HOA fees for these units in your market?

Medium stml logoLinval T., STML Housing Solutions, LLC | [email protected] | 678‑922‑2477 | http://www.stmlhousing.com | NY Agent # 40TA0997583

Congrats! I flipped a condo last fall with a purchase price of $90k. By the time I flipped and sold two months later, those same units were $120k as is!!! Crazy!

Awesome sauce!  Congratulations, thanks for sharing. 

Cheers!  Great job!

Congrats @Linda Weygant !  I bet it feels good to still find deals that cashflow in this market!

@Linda Weygant congrats. If you get enough of them you will want to get on the board so you can control the fees and costs. How are you doing your financing since you now have more than the magic 4 properties?

Medium rre 1to1 small sizeBill S., Reliant Real Estate, Inc. | 720 207‑8190

Originally posted by @Linda Weygant :

I closed on Rentals 4 and 5 today.

These are two condos in the same complex where we already have Rental #3.  These are solid, base-hit condos.  We didn't get an awesome deal on either one, but neither are the deals anything to be ashamed of.


#4 is a 2 bed, 1 bath condo that is turnkey.  Bought it for $127,000 and have had lots of interest and showing on it at $1250/mo rent.  Expecting about $430/mo cash flow.  I have applications in and am just waiting for the reports to come back from Smartmove now.

#5 is the same floor model as #4 (and #3, coincidentally).  Bought it for $119,500 and it's also going to rent at $1250.  Expecting about $450/mo cash flow.  Needs some paint and some other minor repairs that will probably all come in at less than $1000.  Have applications in on this one as well (hurry up people, click the button, send the report!)

2 years ago, these units were going for $40,000.  Last December, we picked one up for $85,000 and now, 6 months later, they are at $120 - $125.  That's the Denver market right now.  There is already another unit listed at $130 and it'll go for that, I'm sure.  I'm not counting on appreciation, but if I had to speculate, I'd say these will be at $150-$160 in another 8 months.

 Cash flows are very good! wonder if you put down more than 25%?

Originally posted by @Bill S. :

@Linda Weygant congrats. If you get enough of them you will want to get on the board so you can control the fees and costs. How are you doing your financing since you now have more than the magic 4 properties?

 Agreed Bill - getting on the board is a great idea, however I've been over their financials with a fine tooth comb and I honestly have no issues with the way they are currently running things.  It's one of the healthiest HOAs I've seen.

Properties 1 and 2 were financed with conventional loans.  Property 3 was bought for cash through a SDIRA.  Therefore, I technically still had room for two more conventional loans.  Unfortunately, these two condos are in a non-warrantable complex, so I had to go with a portfolio loan, so I did not do a very good job of maximizing my mortgage loans before moving to portfolio.

I went through First Bank here in Colorado.  I had an amazing loan rep by the name of Jenna Venoitte who I would highly recommend for professionalism, flexibility and being the calm in the storm when I had a wire transfer that I was expecting come in late.

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

Originally posted by @Linda Weygant :
Originally posted by @Diana Tian:
Originally posted by @Linda Weygant:

 Cash flows are very good! wonder if you put down more than 25%?

 I put down exactly 25%

That is great! it is hard to find good deals in my neighborhood ! property tax and HOA fees are too high.

Congratulations, Linda!  You are rockin' & rollin'.

We also used First Bank and they were great!  The banking institution is pretty good, but if you can find an excellent banker (and they "get it"), it makes a world of difference.

I look forward to hearing about Rental #6, 7, 8, 9 ...

@Linda Weygant- Congratulations! In a tough Colorado market, positive cash flow should be celebrated, especially with HOA included. Even with 25% down, I have shied away from properties with HOA believing the numbers could not work. Appreciate you sharing this story and agree on getting to 10 properties before rates increase.

Just hope the Colorado market doesn't hit a bubble in the near future.

Originally posted by @Linda Weygant :

I must be crazy.  Putting an offer in on #6 today.  Cross your fingers for me!

 You are a little crazy, but this might be in the good way. I think your original timeline is out the window at this point. Just cut a few years off the end and that seems more accurate.

Medium rhplogo jpgDan Mackin, Red Hawk Properties | [email protected] | 720‑971‑7139 | http://www.redhawkteam.com/

@Dan Mackin

You're right.  The original goal is out the window.  I started January 2014 with the goal of 10 houses in 5 years.

I'm at the 1.5 year mark.  So I think it's either going to be 10 houses in 2.5 - 3 years or 15 houses in 5 years.

I do think I need to slow down now.  My real estate agent and my mortgage broker are threatening to put me in a 12 step program.  Although that'd be like a bartender and a bookie making the same threat.  Definitely not in their best interest...

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

I suppose you are financing for long term-30yr.

I think I like your deals better at 85K. Especially with shorter term financing. 1250 rent on a $125,000 house would encourage me to wait on the market. Maybe. The market could keep moving up. Rentals are hard to find.

Is your cash flow before vacancies and maintenance?

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