New BP Member, live/work in CA, investing in Denver

New BP Member, live/work in CA, investing in Denver

Santa Clara, CA · Member since 2019 · 17 posts · 5 votes

I am a head and neck surgeon working in the Bay Area. My experience in real estate has been owning/selling a starter-condo in Chicago, a purchase of single family home in California, and a lifelong interest in real estate transactions/investing. After years of schooling (debt), I now find myself on firm footing and excited about the prospect.

My goals are:

1. Diversify investment holdings by adding real estate holdings (tangible goods).

2. Add ‘passive’ (cough:cough) income- start small with goal of eventual increase in quantity/quality with increasing knowledge/funds. As a starting goal, a 2bd condo or single family home (monthly expenses < $2000) with $2400 yearly net income.

3. Have fun. Make a point of enjoying the knowledge/experience. Avoid additional stress in this endeavor. Staying within means and not over-extending.

I consider myself a well-researched novice. My finances are in line and now I am hoping to learn from experts, build my 'team,' and be prepared for a worthwhile investment opportunity in the next year.

In return (beyond ear, nose, and throat 2nd opinions), I am a high-earning individual with good credit, ethical, a good sounding board, and won't waste anyone's time. 

**Also BP, THANK YOU for the beginner's guide.

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Jeff WhiteBusiness Member
Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
6y

@Chris Gouveia Welcome to BP!  Even with the price points of Denver compared to other similar markets, the annual appreciation over the last 40 years has been ~6% per year, so you can definitely achieve your goals long-term. 

Denver doesn't have the 1% deals much anymore unless you look for condos/townhouses, but there are still deals out there, and I believe in the long-term growth of Denver with all the people moving here, great beer, Red Rocks, mountains, and so many things to do.  

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  • Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    Hi @Chris Gouveia and welcome to BiggerPockets! I really like your goals: You are definitely in the right place!

    I'm curious as to what has drawn you to the Denver market. Also, are you looking at any other potential markets?

  • Denver, CO · Member since 2016 · 12 posts · 7 votes
    6y

    I could be wrong, but I feel like Denver's price points are at the top right now, unless you look outside city limits.

  • Santa Clara, CA · Member since 2019 · 17 posts · 5 votes
    6y

    Coming from California...all price points look good, so good to hear your feedback @Steven Rausch. For sure in the areas I'm looking at the price points have all climbed significantly over the past 5 years fairly consistently. Not to say there aren't still some values that I've seen anecdotally and still opportunities to be cash + on rentals. From my standpoint that could still be worthwhile as I'm not trying to do a quick flip and seems there is still room for population growth and development (again, I'm a novice, so this is just what I hear from people I know there). I have plans to spend a week there probably in the next 6m. I actually am in no rush, and if things cool nationally/locally, that's okay too just want to keep collecting info so that if/when things are right I'm ready (or if info keeps pointing toward 'long-term not going to appreciate' then move the target elsewhere. But happy to hear your thoughts on specifics.

    @Mitch Messer my initial goal was central valley California because I still have some family in the area, and it's still on my list of places. Long-term appreciation felt very limited. We have some family/friends in Denver that would make team-building and keeping tabs on property easier. My Google based search of other markets was very South US heavy, which we have no expertise in and harder to get a lay of the land,etc. which was a tough barrier to overcome. Having spent time In Chicago, I looked but the property taxes and high HOA's of condo's there seemed hard to be net +. Happy to hear of places/information you think worthwhile (if I had a dollar for every city I researched...I'm sure that's common on here.)

  • Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Chris Gouveia

    Welcome to BP, let us know as you get specific questions. Excited to help you get started!

  • Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    @Chris Gouveia I had been operating in the Metro Atlanta market for nearly 20 years before I took a road trip in summer 2018 through the Midwest and had my eyes opened!

    These days I'm still very active in Atlanta, but there's no denying that the market there is severely overbought. Getting the kind of cash flow and financial returns I seek is increasingly harder when I'm competing with every joker with a checkbook.

    So, rather than continuing to beat my head against a wall, I'm now actively looking at small blue-collar sub-markets in places like Wisconsin, Ohio, and Michigan.

    I'm also fast becoming a huge fan of the Sun Belt, particularly Texas and possibly New Mexico.

  • Jeff WhiteBusiness Member
    Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
    6y

    @Chris Gouveia Welcome to BP!  Even with the price points of Denver compared to other similar markets, the annual appreciation over the last 40 years has been ~6% per year, so you can definitely achieve your goals long-term. 

    Denver doesn't have the 1% deals much anymore unless you look for condos/townhouses, but there are still deals out there, and I believe in the long-term growth of Denver with all the people moving here, great beer, Red Rocks, mountains, and so many things to do.  

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Welcome! Keep an eye out for cash flow. It's tough to cash flow in larger markets, which is why I invest in lower cost/higher cash flow markets. 

  • Real Estate Broker · Albuquerque, NM · Member since 2014 · 22 posts · 2 votes
    6y

    New Mexico is a good market.

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Chris Gouveia Congratulations on starting the journey. I would recommend looking into the Columbus, Ohio market.

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

    @Chris Gouveia

    First off, congrats on taking a step out into the REI world. That's awesome. Denver, as some have already said, has some high price points. That said, there are some ways to cash flow. A client of mine just closed on a home near a hospital with about $2,050 with all expenses, including repair/vacancy/capX/utilities and will rent by the room for about $2850 in revenues. That's not bad.

    Then there is the long-term appreciation potential of markets like Denver and Colorado Springs. 

    It really comes down to your goals. You can buy in the midwest for a much lower amount in and get cash flow. Your appreciation will be pretty flat thought. You can get creative in a Colorado market, make some cash flow but also have the possibility of better appreciation long-term.

    Good luck!

  • Member since 2019 · 4 posts · 4 votes
    6y

    Welcome to BP!  I'm also just getting started myself and looking to also invest somewhere in Colorado.  Sounds like you are well on your way!  Good luck!!

  • Rental Property Investor · San Francisco, CA · Member since 2019 · 25 posts · 10 votes
    6y

    @Chris Gouveia would love to connect once I'm over in CA, I have very similar objectives and would love to share & learn! 

    All the best!

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