Hello Bigger Pockets! I'm a brand new real estate investor in Colorado Springs! Or I suppose I should say I am not yet an investor but want to learn to become one. I own a house myself and have a roommate paying some rent, but I can't rightly say that I've invested in real estate yet.
I am mainly interested in passive income and do not plan on being a full time investor as I have a full time job that I plan on keeping, at least for the foreseeable future. The ultimate goal, of course, is to have enough passive income to get out of the rat race, as Robert Kiyosaki would say, and not have to work.
My big questions are how do you get started? How do you recognize deals? Figure the value of a home/apartment/etc? Work out an investment strategy? The main thing holding me back is that houses and other forms of real estate are expensive and I'm afraid that if I make mistakes with my first deal it will cripple my ability to invest in the future. Additionally, Colorado Springs is an insanely fast moving market at the moment. Even when house hunting for my residence a house would be gone within days of being listed.
I look forward to learning! Thank you and it's a pleasure to be here!
Welcome to Colorado Springs James - Your goals great good luck here in COS
words of advice from me would be to rush into anything, make sure the numbers are right, and if you make a mistake making it early is good because you will learn from it.
A primary residence and House Hacking is always a good place to start - you can buy a duplex live in one and invest in the other. Whatever you end up doing if you have questions are need any guidance I live locally here in the springs would be more than happy to talk real estate with you.
Welcome to BP and investing in the Springs! You are at a point that is the hardest for most investors - making the step to buy your first investment property. All too often, people get caught up in analyzing and over analyzing deals or plan just getting nervous and never "pull the trigger".
I think the best way to get started is to think about what you are truly looking for with your investment properties. Are you solely interested in cash flow or are you going to consider appreciation or value add opportunities? Do you want this very passive with a property manager or do you want to "get your hands dirty" and understand the ins and outs before passing the torch? Do you like the idea of maximizing cash flow with multi-units or the familiarity of single family homes?
After you get these general ideas solidified, you can start to look at what metrics you will use to analyze the deals instead of going on what other people tell you or going with your gut. For example, do you require a $200/per door cash flow and 10% cash on cash returns or are you looking at a 5 year ROI that includes appreciation and selling costs? There are good investors here that you can bounce ideas off of or you can also find an investment knowledgeable agent to help you as well - just make sure they know investments, the area you are investing in, and will help you through the process.
There are still plenty of deals to be had in the Springs, but you will want to make sure to define exactly what you are looking for, having any financing lined up, and have an agent that can help you jump on opportunities immediately when they come available.
Good luck and of course feel free to reach out if you would like any help in the Springs!
Hello Joshua and Phillip,
I appreciate your responses and the offers of help!
I'm mainly interested in passive income with as low maintenance from me as possible. I'd be content with the house being no extra expense to me, managed by a property manager, and just letting tenants pay off the mortgage. Any extra cash flow would be a welcome bonus. My thought is to have at least one investment property paid off 10-15 years from now, use that income to pay down the remainder on the next, and so on.
I have not yet decided if I'm more interested in multi-units or single family homes. I like multi-units as I've heard vacancies aren't as hard to cope with, especially if you can have the mortgage covered by half or two thirds of the units. I'm more familiar with single family homes, but not by much from an investing perspective.
Fix and flip and other more active forms of investing are interesting to me and I may branch into it later on, but I'd like to start more in the long game.
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