26 yo Newbie looking to invest in Colorado!

26 yo Newbie looking to invest in Colorado!

Oregon-Colorado · Member since 2019 · 2 posts · 3 votes

Sorry for the long post in advance but bare with me! So my name is Alex Pickles (yes like the food) and I’m a 26 year old male from Bend, Oregon. I’ve been interested in real estate for about 5 years now, doing my own research and I even took the real estate licensing course, not with the intention of becoming an agent, but to learn everything I could about real estate. I stumbled upon the BiggerPockets podcast around 4 years ago and became HOOKED. I worked as a heavy equipment operator so for 10 hours a day, 6 days a week I would have headphones in listening to this and taking away little chunks of gold from every episode, and I honestly learned way more from that than my real estate course. 



But then last year I got presented with an opportunity to work as a traveling heavy equipment operator in the oil fields for a substantial increase in pay and that took up so much of my time traveling from state to state and working 60-100 hours a week I completely fell off the real estate wagon. my train of thought was “I’m making over 6 figures now, I’ve made it!” But about 4 months ago I sat down and really started to think. The oil industry isn’t going to last forever, I’m working INSANE amount of hours and I’m missing all the important things that are happening in my friends and families life. This isn’t worth it. So my thought process has now shifted to, I’m at that age where I do need to start thinking about starting a family of my own, and life on the road is really tough on relationships. I need to use this money that I’m making now as a means to an end. So here I am! More inspired and than ever!

As to why I chose Colorado to be the place I want to settle down is one of my last jobs was in the Denver area and I fell in love with the place. It has a booming economy, not to reliant on one source, so if oil or something were to crash Denver would be fine. (unlike west Texas) and the people and how beautiful the nature is, kind of like Oregon! Also what better place to get started in this than where the BiggerPockets HQ is located! Watch out josh I’m coming for ya ;)

I don't currently have any deals under my belt, but I do however have a nice big fifth wheel that I have zero problem living in. So my question to you guys is, what strategy do you guys think I should pursue? Should i start small and do my first deal as a house hack with an FHA and Live in my fifth wheel? Is that even legal? Or should i Airbnb my fifth wheel and rent out the other rooms in the house? I have no preference on single family-multi family homes, I just wanna get my feet wet and get the jitters out of the way and I'm just looking for a DEAL. ORRRRR should I take out an unsecured LOC and just jump right in with the Brrrr strategy? I don't have THAT much saved up to completely finance a brrrr with cash but I do have a pretty high credit score so I think I could qualify for a reasonable LOC.

so with all that being said, this is my first time posting to any type of forum ever and I’m doing this journey completely alone. So any advice you guys have would be GREATLY appreciated and a huge confidence boost. Don’t be afraid to reach out to me! Thank you guys so much for everything you do at BiggerPockets, it’s truly inspiring and I can’t wait to start meeting and interacting with you guys! 

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  • Real Estate Agent · Denver, CO · Member since 2019 · 13 posts · 7 votes
    6y

    @Alex Pickles welcome to the community! Definitely agree that there is so much more information here than a real estate licensing course, especially when it comes to investing. So many good episodes covering all sorts of topics

    Sounds like we’re in the same boat in terms of travel. I was on the road 90% of the time at my job right out of college and two years in I couldn’t take it anymore. It was great for saving money but all the flights back and forth and hotels got old quick.

    In terms of what you should do next, it depends on what work will look like (among other personal preferences/goals). Are you still traveling for work? If you are, sounds like a good opportunity to save a lot of money (if your company is paying your travel expenses of course). Is this fifth wheel what you use to travel for work? In my opinion, if you were to work in Denver and not have to travel anymore/travel very little, I would consider selling the 5th wheel. Depending on what kind and how old, you may still be able to get a good amount for it to put down as a down payment. I'm also guessing there's a pretty nice truck in front of that fifth wheel too that you may not need anymore if you were to sell the 5th wheel and get a more practical daily driver. Either way, with your income, sounds very doable to do a low down FHA or conventional and house hack

    Hope this helps and good luck! 😁

  • Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    @Alex Pickles

    Welcome to Denver! It's no surprise that if you like Bend, Oregon, you'd like Denver. It's a bit more urban here, but nature's never far away.

    I always tell our buyers that their first "investment" should be their first primary residence. Don't get too cute. The goal is not to hit it out of the park with the first one. It's to have a successful first entry into real estate so you are excited to do it again ... and again and again and again ... 

    So find a nice place to put yourself. You're young and not too tied down, so a house-hack might be an option. Get a 3 or 4br house and rent out the other rooms. You'll get some experience with house maintenance and being a landlord. In a year or two, you can buy another investment or move out and repeat the whole process again. You could also do this with Airbnb. Find a home with a basement apartment, live upstairs and short-term rent the downstairs. 

    Anyway, you've got options. Talking to a lender is a good first step to see what your qualification looks like. I wish you luck!

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