Looking to buy my first rental property.

Rental Property Investor · Greeley, CO · Member since 2020 · 13 posts · 3 votes

I’m looking to buy my first rental property. I live in Northern Colorado.

The Market is incredibly high for a buyer at the moment. It’s definitely a sellers market. Is there anyone in the area who invests in rental properties?? Is it doable? Any advice would be greatly appreciated.

I’m still in the stage of reading books and educating myself. I do have a large amount for a down payment saved, but I don’t wanna jump in hap-hazardley. Thanks!

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James CarlsonBusiness Member

Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes

@Erin Spradlin Thanks for the shout out.

@Carl Mayer Unfortunately, northern Colorado is not immune from the issues facing the entire front range and that is an influx of people and not enough places for them to buy. (That's getting basic there, but it's largely true.)

That said, there are always homes out there that work for those who can get creative. Rent-by-the-room, medium-term rental, short-term rental, renting parking spaces, sheds. If you have to live somewhere, you might as well own that place and get equity. Then it's just a matter of how to squeeze income out that with the above ideas.

Like what Erin said, we do have a buyer under contract on a place that is technically a duplex but has opportunity for him to live in the basement and rent the upstairs units. He'll live for free while he's there and cash flow between $500-$800 depending on rents. Now, I happen to think we have a pretty good deal on this, but they come up occasionally.

Go to some of those meetups up there, ask questions on the forums, take people out to coffee who seem to be on the same page as you and you'll eventually get the feel for what works and doesn't. I wish you luck!

[email protected]720-460-1770

James Carlson Real Estate

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
I know some people who moved to Colorado and learned really fast they can't afford the bigger cities. Greeley looks like a nice area and more affordable than Fort Collins or Loveland. My friend (originally from Indiana) bought a place in Erie because Denver prices are insane!

If you know the basics, your market, the numbers, and prices compared to rent, maybe it's time look for DEALS. Have you reached out to any agents (least effective in my opinion)? Are you receiving wholesaler emails? Have you tried driving for dollars, DM, or searching off market? This is the best way to find a deal in 2020. Maybe you could focus on student rentals near UNC? You should be able to spot a DEAL based off the numbers within a few minutes.

If you can't that's okay but someone else can and they just made an offer.

PS: I love the breweries in Colorado! Avery Brewing Company is my favorite.
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Carl Mayer
OP
Rental Property Investor · Greeley, CO · Member since 2020 · 13 posts · 3 votes
6y
@Jaron Walling wholeseller emails?? Not sure exactly what that is or how to subscribe to such emails?
0 Reply
Erin Spradlin
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
6y
@Carl Mayer - can't believe I'm saying this, but Greeley is getting a lot of play for having excellent economics and being a solid place to invest. Here are a few articles discussing why this city is on everyone's radar: https://smartasset.com/mortgage/top-boomtowns-in-america-2019 and https://www.fool.com/millionacres/research/top-10-hottest-demand-markets-rental-investment-2020/.
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Erin Spradlin
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
6y
@James Carlson - adding James as he's currently helping someone with a triplex in Greeley.
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Chris LopezPro Member
Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
6y
@Carl Mayer attend @James Orr Northern Colorado Real Estate Investment Group. He's an agent and investor up there. His knowledge and meetups will blow you away!
Podcast Guest on Show How to Use Equity in Your Home to Reach Financial Freedom Faster
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James CarlsonBusiness Member
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
6y
@Erin Spradlin Thanks for the shout out.

@Carl Mayer Unfortunately, northern Colorado is not immune from the issues facing the entire front range and that is an influx of people and not enough places for them to buy. (That's getting basic there, but it's largely true.)
That said, there are always homes out there that work for those who can get creative. Rent-by-the-room, medium-term rental, short-term rental, renting parking spaces, sheds. If you have to live somewhere, you might as well own that place and get equity. Then it's just a matter of how to squeeze income out that with the above ideas.
Like what Erin said, we do have a buyer under contract on a place that is technically a duplex but has opportunity for him to live in the basement and rent the upstairs units. He'll live for free while he's there and cash flow between $500-$800 depending on rents. Now, I happen to think we have a pretty good deal on this, but they come up occasionally.
Go to some of those meetups up there, ask questions on the forums, take people out to coffee who seem to be on the same page as you and you'll eventually get the feel for what works and doesn't. I wish you luck!
[email protected]720-460-1770
James Carlson Real Estate
Website View Page
1 Reply
Kiera Underwood
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
@Carl Mayer are you committed to staying in-state or are you open to looking at markets that might be better suited for where we are in the market cycle?
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Carl Mayer Email listings. That's how most of them shoot out deals to investors. Just add an email to your profile and you'll be sure to get a 100 emails every month. I removed my email info for the same reason! Good luck man
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Craig CurelopBusiness Member
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Carl Mayer - Keep educating yourself! You will know when you are ready to make the move. It will always be uncomfortable because doing something for the first time is always uncomfortable....
I recommend starting out with a House Hack. It is a very low-risk way to invest in real estate. You put a very small amount of money down, your tenants pay your mortgage, you live for free, and if anything goes wrong, you will know about it very quickly (because you live there!).
[email protected]Podcast Guest on Show #350
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Carl Mayer
OP
Rental Property Investor · Greeley, CO · Member since 2020 · 13 posts · 3 votes
6y
@Kiera Underwood yes I’m here to stay due to the job I currently have. But that’s kinda the reason for my question..... Should I be looking elsewhere if I wanna be a serious investor??
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Carl Mayer
OP
Rental Property Investor · Greeley, CO · Member since 2020 · 13 posts · 3 votes
6y
@Carl Mayer
I come from a small town with in Kansas. Where a house in Colorado is worth 350K that same house back home is work 100k. I realize that the demand for rentals is way greater in Colorado than back home. I’m just a little gun shy due to the extreme prices..... should I be concerned about price of the house or more concerned about cash flow and availability of renters??
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Carl Mayer You should be concerned with networking and finding a DEAL. It's not difficult but it takes effort. I was gun shy when I first got started. I grew up in small one stop light town and my market still feels "big" to me. You can't determine the direction of your investing until you lock up a property. I originally wanted to buy/hold but now I'm flipping stuff. The numbers will steer you in the right direction.
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Dan MackinBusiness Member
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
6y
@Carl Mayer you can invest almost anywhere, but you just need to figure out what your best methods are for where you're at. As Craig and James have said, house hacking could be great, but there are of course reasons why that method may not work for everyone. If you want to get a good feel for the Greeley market look up @Mark Ferguson and his blog. Plenty of useful info for you there.
720-466-3378
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Kiera Underwood
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
@Carl Mayer At this point in the market cycle I'd personally feel more comfortable investing in a market that doesn't appreciate rapidly. Right now things have risen so high in exciting markets that the downturn makes me a little nervous. I see a lot of entry-level investors going to cash flow focused markets now and planning to hit more exciting markets during the next downturn. That makes sense to me!
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