BRRRR AND HOUSE HACKING IN COLORADO SPRINGS

45 Replies

Hello! I'm getting closer to purchasing a potential single family that I would like to house hack and BRRRR. I still have alot to learn, and would like to connect with investors in town who are doing this. Looking to get a feel for this process, and to see how you guys do it!

Regards, 

Jeremy

Hi @Jeremy Babin , you're pretty close to the motherland of the good  sir @Craig Curelop , and I'd recommend his book highly on thinking through the perks of each different approach to house hacking that you might be able to employ.

Hey @Jeremy Babin - Finding a home to do the BRRRR method too is tough in this market. I would recommend connecting with wholesalers like @Brent Bowers , @Darren Smith , and others. The other option would be to do a small marketing campaign of your home to secure something off market. That certainly adds more to learn. My biggest recommendation would be pull the trigger on something and don't wait around for that one perfect deal to come around. 

Originally posted by @Jeremy Babin :

Hello! I'm getting closer to purchasing a potential single family that I would like to house hack and BRRRR. I still have alot to learn, and would like to connect with investors in town who are doing this. Looking to get a feel for this process, and to see how you guys do it!

Regards, 

Jeremy

 I've been house hacking here for several years and it's extremely easy to find reliable tenants who stick around in this market, all three of mine will have been with me for over a year within the next couple of months and two of them intend to stay 2 years minimum. Many of the split level houses here have basements that function a lot like their own unit and make house hacking very easy. 

If you go with a BRRRR for your first project I second @Colin Smith that you're going to need to look off market. I would start with those wholesalers but often times even wholesale deals are getting bid up to near market value..... Going direct to seller yourself is your best bet. I also want to emphasize that doing SOMETHING is most important, especially the way this town in progressing. Reach out anytime if you have questions. 

-Dan

@Jeremy Babin

Not to pile on, but again in Colorado Springs cash-flowing a property is tough (unless you're house-hacking with a rent-by-the-room model, and even that is pretty tough model to scale.) BRRRing isn't any easier. Wholesale "deals" don't seem to be much of a deal at all, and so finding homes sufficiently under market to be able to add value are hard. 

If you are dedicated, you can find an off-market deal but you've got to be diligent and persistent. People do it, and you can too if you want it.  

Reiterating again what others have said, I say take some action over nothing. We bought our first place five years ago in Denver, at a time when everyone was saying the market would correct soon (hmm, how long have we heard that?). We didn't cash flow initially, but rents have caught up and we're doing fine. Plus, it's appreciated nearly $100k in that time. As they say, don't wait to buy real estate, buy real estate and wait. 

Good luck with everything. Cheers!

I agree that split levels are the cheapest way to get into house hacking.  We've wholesaled several that even had a second kitchen downstairs, but you could install a kitchenette pretty cheaply.  Duplexes are great, but they are priced so high right now that it would defeat the purpose of house hacking.  

@Jeremy Babin - Congrats on getting close! BiggerPockets is definitely the place to learn. I have done a handful of house hacks and BRRRRs in the Denver market. 

Happy to chat - just shoot me a direct message on BiggerPockets and we can set up a time if you're interested.