Jersey City, NJ · Member since 2016 · 28 posts · 8 votes
Hi,
I've been considering a move to Colorado and will be visiting Denver at the end of the month. I plan on checking out the neighboring neighborhoods to see what they are like and see which I would be able to purchase in (eventually). I will probably be able to afford something around 300k with 10% down and wouldn't be moving for at least few months (so up and coming areas aren't off limits). Does anyone have any suggestions as to which areas might be beneficial for me to focus on? Would like to house hack a multi family but when searching on realtor.com it doesn't really show a lot of them, are they more of a rarity in the area or am I just looking in the wrong places? Any direction or help would be appreciated :)
Will be going last weekend of September, if there are any events going on that you know of I'd like to stop by.
@Eric S. - thanks for posting. While the Denver market may be plateauing, the Colorado Springs market appears to have quite a bit of upside remaining and is typically two to three years behind. Given the price points in Denver, Castle Rock and surrounding areas, many investors (and agents) are venturing this way unaware of the nuance of the very different markets, making investment decisions relying solely on raw MLS data.
Wherever you choose, make sure to select a seasoned professional with the local experience necessary to responsibly address the nuance their respective market brings.
At that price point a duplex the Denver Metro Area is going to be tough, even for SFR. Also the market is very competitive so be warned that 10% down may not be as attractive to a seller looking at multiple offers. If you get a good broker they can help you strategize on making your offer as best as possible. It's not impossible to find a single family in your range, but houses under 300 tend to go in a matter of days. Cities like Aurora, Westminster, and Northglenn may be some of your best bets close to the city, but even then you may want to plan on a fixer upper. Best of luck!
@Eric S. - thanks for posting. While the Denver market may be plateauing, the Colorado Springs market appears to have quite a bit of upside remaining and is typically two to three years behind. Given the price points in Denver, Castle Rock and surrounding areas, many investors (and agents) are venturing this way unaware of the nuance of the very different markets, making investment decisions relying solely on raw MLS data.
Wherever you choose, make sure to select a seasoned professional with the local experience necessary to responsibly address the nuance their respective market brings.
@Eric S. - thanks. I look forward to it and will treat you to the best NY style pizza I know. Being from the Bronx, I like to think I know good pizza. You know what I mean?
@Eric S., there are a bunch of meetups that you could check out when you are out here, I think they are listed on the BP events page. I'm sure you know that this area is experiencing a lot of growth, if I had the flexibility I might focus on a house hack in an emerging market or maybe a town/city close to some of the areas that have low inventory. Just some ideas, I would reach out to @dan mackin for more "house hackin" expertise.
@Jared Bouzek I've lived on the east coast my entire life, want to explore the other side of the country and Colorado seems like a good place to start doing that. I also enjoy outdoorsy activities and I like having a semi trendy downtown area. investment wise, seems like a few companies are moving there, so that could lead to job growth and better rental returns if I get in early ish enough.
Not investing yet but also know you could get in somethinf nice up in the Norther Colorado around that pricing from what I have been researching. Just not as hot as it will be in the Denver or even Spring area, unless you go to college area.
I would contact @Charles Roberts or @Chris Lopez with Your Castle Real Estate. They work with local investors and they are the best at helping investors locate, research, and invest in Denver real estate.
@Eric S. Awesome. I think you'll really like the change if you've spent your entire life on the coast. My wife and I moved here almost four years ago and we love it. We're planning to stay long-term. It's pretty easy to get up into the mountains from about anywhere in the Denver area. Plenty of hiking, biking, and skiing spots.
@Eric S. it really depends on where you want to live. There are neighborhoods in that price range all over, but they can be more than an hour from each other, so you might want to rent first until you figure out where you will work, then find a house near there. I'm not sure you can see it on the public mls, but on the real estate agent version, you can search for income properties, and that is where a lot of the multi-family properties land. Feel free to reach out if you need help.
@Adrian Tilley I am definitely not in a rush to buy just anything, I will have to take into consideration where I'd work. If this trip goes well I intend to make other trips out there to explore more and check out the job opportunities.
In everyone's experience, which do you believe would work out better:
1. Buy a multi family, live in one rent out the others
2. Buy fixer upper single family and try out the BRRR method.
- Is this common? Is the inventory better/less crowded than multi family?
Both will be fine, it comes down to the individual deal. You're kind of asking if apples or oranges are better for you...
My only note may be that living in a rehab is not really fun, I'm too old for that kind of dusty lifestyle. I'm not sure you have enough cash for it anyway.
@Ronald Rohde I was thinking I could do something like a FHA (203)k if I couldn't straight up afford the renovations. This is a theoretical though, I'm just trying to get a feeling for how the market is.
I grew up in the DC suburbs and then moved out west after graduating college. I’m sure you’ll enjoy the lack of humidity too out here! That’s one of my favorite things.
You're going to have a really hard time finding a multi for under 300k. Currently, there isn't one on the MLS for under 300k. I know many people scoff at the MLS, but the reality is you're going to have a very hard time finding anything that's not on the MLS. For long term investing, you can still find good deals on there. Go for a "base hit" and grow from there.
Talk with a loan officer ASAP to figure different financing options. Even getting to the 400k range will open up possibilities. @Jared Bouzek knows his stuff. Consider reaching out to him.
@Charles Robertsis teaching a class soon on trends for the multi units (2+) in Denver. I’ll send you a PM once I get the details.
Fixer upper vs single family: One is not better than the other. Just depends on your preferences.
I know of a duplex In Wheatridge going for a little over 350,000....I have a little bit of knowledge on the property and I believe they will accept 320,000.
If you want a multi for 300k in the Denver area, look to "old Aurora" bounded by Yosemite on the west, I-225 on the east, 6th ave on the south, or Montview Blvd. (20th ave) on the north. That's where we started with a duplex. Also, I would consider buying FHA rather than conventional with 10% down. You'll want some cash left over for rehabs. Co.Sp. is another good area for your price. However, it all depends on where you work. You don't want to make the commute from Denver to the Springs or the Springs to Denver daily.
@Adam D. thanks for your input, I'll check those areas out. I realize a lot of my details are up in the air right now since I don't have a definite timeline or location but any info helps me kind of narrow down where I'd like to look. I'm a software developer (usually a pretty"in demand" job) so I'm hoping that'll make it easier to find something relatively close to wherever I end up.
Hit colorado Springs. I was there a year and loved it. A 5 minute drive from where I lived could have put me at a cliff where you could be a rescue victim so its easy to escape the city feel. Its also going to be cheaper than Denver as well.
Do indeed check out meetup.com for links to plenty of REIAs that are of great quality.
@Pine Financial does a great job of providing hard money lending and they have a meetup in Springs and Denver I believe so that might be a great way to meet people.
Hi Eric, welcome to BP. There are some nice areas up north that could show some profits. Also depending on the right funding you can put less down and usually qualify for more using some of the rent as your calculation of income to increase tour qualification.
In general, there are less multifamily out here than in other cities. Most of the duplexes or better are listed differently in MLS so don't always show up in Realtor.com and they are quick movers in most cases.
I would try to set up a meeting with a mortgage broker that is great with investors to help you structure the first play and plan for a long term goal.
thanks @Steven J. and @Kevin Grinstead, I'm definitely check out Colorado springs, and any local meet ups. I'll check out that lender and see if they are doing anything while I'm there