Lurker emerging from Arlington, VA by way of Denver

New Member Introductions
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Lurker emerging from Arlington, VA by way of Denver

Christopher Cole
Rental Property Investor · Seattle, WA · Member since 2014 · 69 posts · 51 votes

I have been just reading in the background, but I figure I'll introduce myself now.

When I lived in Denver, I bought a duplex, lived in one side and rented out the other. Some good and bad experiences, but generally a great investment.

I've been saving up, I'm ready to invest again, but I decided to get smarter about REI before diving in this time. That's how I found Bigger Pockets! I especially have enjoyed the podcasts. I thought my Denver property was a pretty good deal, but I have now learned most of you investors would really cringe at my returns. I still think what I have is great, but now I'm much better prepared for a better deal!

One book I haven't seen much mention of is the richest man in babylon (but on the top books list). I've been automatically putting aside 10% of my paycheck for years.

I'll be looking to invest either in the greater DC area (Baltimore maybe? Or Richmond?) or in Denver. Thanks all!

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  • Lauren R.
    Melbourne, FL · Member since 2014 · 18 posts · 5 votes
    12y

    Welcome @Christopher Cole to the BP community!  If you don't mind me asking, when you were a duplex owner living on one side, did you tell your tenant next door you were the owner?  Always interesting to hear about those types of experiences.  :)

    0Reply
  • Christopher Cole
    OP
    Rental Property Investor · Seattle, WA · Member since 2014 · 69 posts · 51 votes
    12y

    @Lauren R. Yes, they knew I was the owner.  Kinda hard to get around it - I had to collect rent, do maintenance, etc.  Like I said - there were positives and negatives about it.  It was too easy to have to be a little relaxed with some things (I had to live with them by me after all).  Now that I'm moved out, I'm super happy to have handed all that part over to a property manager :)

    0Reply
  • Bram Spiero
    Investor · Fair Lawn, NJ · Member since 2014 · 384 posts · 189 votes
    12y

    Welcome @Christopher Cole, can you afford a property manager on a single duplex? How much does that cost?

    0Reply
  • Christopher Cole
    OP
    Rental Property Investor · Seattle, WA · Member since 2014 · 69 posts · 51 votes
    12y

    @Bram Spiero The property manager is 10% of the rent, which I think is pretty standard.

    This forums seems to be all about details and real numbers (which I like), so I guess I'll share on my duplex.

    Purchase price: $295k
    Side 1 (3 beds/1 bath): $1350
    Side 2: (2 beds/1 bath): $1200

    Basic Income 2550 - basic expenses ~2171 (water varies, mortgage, management fee, tax, insurance) = $379.  Take out occasional maintenance and moves, and its more like $150-200.  A full month of vacancy briefly dips into negative cash flow territory, but so far I haven't had anymore than 1 month of vacancy.

    The duplex is in a pretty nice area, and is actually really nice inside (hence I was happy living there).  I installed a/c in both units, painted, and replaced fixtures (light switches, electical outlets with nice white ones, doorknobs with nice steel ones).  Makes a surprisingly big difference for a relatively inexpensive, DIY improvement.

    Clearly my cash flow isn't so great, but with a ~.8%, but I am not under water at all.  The unit has actually appreciated in value as well.  I am developing a theory that you don't need as high a cap rate in A neighborhoods to cash flow because it seems tenant and maintenance related costs are lower.

    With that said, for my next deal I think I'm going to try dropping my neighborhood standards a bit (C+ maybe?) and go for a much higher cash flow (> 1.5%) and see how that works for me.

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    12y

    Welcome to BP community @Christopher Cole  It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Wishing you the best! 

    0Reply
  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @Christopher Cole welcome to BP! You can check out the blogs as well as interact in the forums.

    If you like, you can check this quick guide to learn how to use BiggerPockets to grow your business: http://www.biggerpockets.com/biz

    See you around!

    BiggerPockets
    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Christopher Cole welcome to the site! It's great to have you. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing. I'm glad you're checking the podcasts! 

    I hope to see you around!

    Podcast Guest on Show #92
    0Reply
  • Nilesh Makhija
    Investor · Chantilly, VA · Member since 2014 · 249 posts · 31 votes
    12y

    @Christopher Cole - Please ask questions and there are many here who invest in similar areas where you are interested in. So try getting the right realtor and financing and then go from there

    0Reply
  • Jon Deavers
    Richmond, VA · Member since 2013 · 293 posts · 96 votes
    12y

    Welcome to the community @Christopher Cole 

    If you would like to come down to Richmond I'd be happy to give you a tour of the city and discuss what neighborhoods best fit your investing criteria. 

    Enjoy the site and best of luck!

    0Reply
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