Well I’m looking to relocate to Colorado Springs by this time next year. I’m sure I’ll be able to transfer with my company with no problems. Here’s my real estate question. I currently own my current home in OKC, I’ve got about 30K in equity and wanting to rent it out or sell it. I’d like to keep it and then BRRR and house hack or purchase 3-4 plex. Now this is all in the future so I have time. What should I keep in mind when I figure my options? Another question: for a single person what’s the opinion on purchasing an apartment? Just a single apartment in a complex and then continue to move up. I’ve considered this also is purchasing an apartment to rent usually a good investment? Thanks a bunch, Jeremiah

The BRRR strategy and selling you home to buy a home in a new area both accomplish being able to use your equity as a source of down payment for the next rental. When you refinance with the BRRR strategy, you should remember that you will not be able to get out more than 80% or so of the total market value of the home. If you are able to cash flow with the new mortgage (after PITI, vacancy, capex, and prop mgt fees) and get additional money out, this is a great option. A out of state investments can be difficul to manage, even w good property management, but is definitely possible!

As far as apartment vs house hacking a multiunit- I highly recommend a multiunit. In the Springs (a market I service) you are able to live for free if you purchase a triplex or fourplex and rent out the other units. With the higher price point you also build up more equity over time than you would with an apartment. I am a huge fan of multi units with owner occupied or not as the per unit cost is substantially less and rents do not decrease as much compared to a single condo thereby greatly increasing your roi. 

As for investing in condos, you'll hear people going either way. All condos have HOAs and this comes with some risks of special assessments, power hungry board members, poor management, ect. The HOA also cuts into your returns - however I know investors that focus on condos and/or townhomes that do well. There is less to worry about (no lawn maintenance, worries about roof as long as it's correctly insured, liability with snow removal, ect. I would prefer a single family home to a condo and of course you now know I strongly recommend multi units if your current situation allow some for that.

Colorado Springs is a great market for house hacking / buy and hold investing right now as prices are still MUCH lower than Denver Metro and rental rates are high (and rentals are in high demand, renting quickly!!). Let me know if you need any help!

@Phillip Bicker thanks for your reply and input. I’ll keep in touch. I’m curious as to the springs market is compared to the Denver metro. I haven’t done a whole heck of a lot of research, so I maybe bending your ear in the future.

@Jeremiah Dye - I am a Realtor in the Colorado Springs area who primarily works with investors. Depending on the equity that you currently have, you may not be able to keep your current home and buy something in this market. Something to keep in mind is you'll need to live somewhere, therefore you may as well own where you live and force appreciation through rehabilitation while you are there. Plan to be there for at least 2 years, and move onto the next home after that point in time. If you the property appreciates enough in that 2 year period, you may be able to refinance what you have and buy the next project, thereby doing the slow BRRRR method but with very little additional cash outside of the equity you currently have.

Whether you rent or sell depends entirely on the numbers. Most SFHs purchased as a personal home are priced too high in a market with rents to low to make for any cash flow and are often negative. Investors rely heavily on appreciation on a SFH to make money and will need to be prepared to supplement their tenants rent to cover costs.

Do the numbers and you will know which option is best.