Ideally, I'd like to house hack with a Triplex or 4-plex. I've been pre-approved for a max purchase price of $690,000 with an FHA loan but I think the max I'd be willing to purchase is $500,000. Any advice on where to look?
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
6y
@Maria N. - I would look in the Widefield and Security areas. It is supported by multiple military bases and has a large population open to having roommates and needing temporary housing. Added to that, it is between Colorado Springs and Pueblo, both of which have been hot markets the past few years, and Colorado Springs is getting an Amazon facility on the south end (close to Widefield/Security). Right now, this location is cheap, but it has very good mountain views and you are seeing business interests move in that would suggest more money is coming (aka, Starbucks.)
Lender · Denver, CO · Member since 2009 · 1k+ posts · 597 votes
6y
@Maria N. you might try being a little more specific to get responses. Colorado covers more than 100,000 square miles. If there is a metro area you want to be in, or a distance from work that would be acceptable, it would help narrow the search considerably.
Realtor · Denver, CO · Member since 2016 · 499 posts · 129 votes
6y
@Manar Naboulsi there are some places where you might be able to get a triplex for that. Metro Denver would be more difficult unless you decided on a duplex with a carriage house which you might be able to find. Aurora has some triplexes that would probably work but might need some work. Commerce City occasionally has triplexes available.
Duplexes would be easier to find in most of Denver and Aurora and Even some in Lakewood and other areas. If you are open where to live, having an agent keep an eye out all over could be beneficial.
Denver, CO · Member since 2016 · 50 posts · 25 votes
6y
@Manar Naboulsi it’s going to be tough to find a triplex for 500k in the Metro area unless it’s seriously beat. That being said if you’re willing to spend up to your limit you can find options in north Aurora for 2-4+ units. May have to look up in Greeley or Loveland/Longmont, about 30-45 mins North from Downtown Denver. Another option would be to look in Colorado Springs. Shoot me a message if you need more in depth insight on any areas.
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
6y
@Maria N. there is a whole other side to the Rocky Mountains. Look a western Colorado. You can buy multi-family properties for under $500K here in Grand Junction...
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Maria N. - Finding a multi-family in the metro Denver area is very tough. In almost all cases they barely cash flow when you move out if you are doing a house hack.
That being said, there are TONS of single family houses with basements that have been finished and have their own kitchen. That tends to be the best play here if you are looking for a house hack. Either that or a single family and renting it by the room.
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
6y
@Maria N. - I would look in the Widefield and Security areas. It is supported by multiple military bases and has a large population open to having roommates and needing temporary housing. Added to that, it is between Colorado Springs and Pueblo, both of which have been hot markets the past few years, and Colorado Springs is getting an Amazon facility on the south end (close to Widefield/Security). Right now, this location is cheap, but it has very good mountain views and you are seeing business interests move in that would suggest more money is coming (aka, Starbucks.)
First off, welcome to BP! It appears to be your first post. Lots of good info here.
As others have asked, are you looking in Denver, Colorado Springs, elsewhere? In Colorado Springs, you'd be able to do a triplex at that price point. In Denver, it's a little trickier. Either way, it's a great way to house hack if you can find them. We also find people what appear to be traditional SFHs but in areas zoned for two units and you can then do a conversion.
Don't know if you're thinking about doing Airbnb or short-term rentals in any of the units. Something to note is that in Denver, you can only STR your primary residence and they do not consider the other side of a duplex -- even if you own the whole thing and live on the other side -- to be a legal STR. In Colorado Springs, I think that's different, but I'd have to check.
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Maria N. - Congratulations on your first post, getting pre-approved, and welcome to the community!
Landing a 2-4 unit in Denver is tough to do if you want a lot of cash flow. For $500k or less, you can likely get an up/down duplex in the up and coming parts of Denver or a side by side in the suburbs. It's tough to make these work if you are going for maximum cash flow. If you want to have minimal cash flow (maybe $200 to $300 a month when you move out), but want to hold on for appreciation, it would be a good play.
Personally, what I have done and have helped a lot of other people do is find a single family residence with 5+ bedrooms and 2+ bathrooms. Live in one room or rent the others. Alternatively, you can find a single family residence with a mother-in-law suite. Rent out the mother-in-law suite and you'll be able to rent it out as a duplex when you move out.
With these strategies, I have cash flowed well over $1,000 a month and am still realizing the appreciation of Denver.
I would recommend the Old Colorado City or around downtown area of Colorado Springs. Colorado Springs in general attracts a large tourist crowd with Garden of the Gods, Pikes Peak, Olympic Training Center, and 5 military installations to include the Air Force Academy. If you buy right, you should be able to find a 4-plex in that area that would make for a great STR but could run long term tenants if you needed to change strategies.
Pueblo, CO · Member since 2019 · 22 posts · 12 votes
6y
Hi Manar, How about Pueblo or Pueblo West. Pueblo holds the Colorado State Fair, has the Colorado State University - Pueblo, employs defense, steel manufacturing and agricultural businesses. Pueblo is economical and affordable driving distance to military bases in Colorado Springs. Check out the beautiful down town with the Sangre de Cristo Art Center, the Arkansas River Walk and Nature Center. Contact me for more specific market details.