Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
I closed on Rentals 4 and 5 today.
These are two condos in the same complex where we already have Rental #3. These are solid, base-hit condos. We didn't get an awesome deal on either one, but neither are the deals anything to be ashamed of.
#4 is a 2 bed, 1 bath condo that is turnkey. Bought it for $127,000 and have had lots of interest and showing on it at $1250/mo rent. Expecting about $430/mo cash flow. I have applications in and am just waiting for the reports to come back from Smartmove now.
#5 is the same floor model as #4 (and #3, coincidentally). Bought it for $119,500 and it's also going to rent at $1250. Expecting about $450/mo cash flow. Needs some paint and some other minor repairs that will probably all come in at less than $1000. Have applications in on this one as well (hurry up people, click the button, send the report!)
2 years ago, these units were going for $40,000. Last December, we picked one up for $85,000 and now, 6 months later, they are at $120 - $125. That's the Denver market right now. There is already another unit listed at $130 and it'll go for that, I'm sure. I'm not counting on appreciation, but if I had to speculate, I'd say these will be at $150-$160 in another 8 months.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
11y
Congrats! I flipped a condo last fall with a purchase price of $90k. By the time I flipped and sold two months later, those same units were $120k as is!!! Crazy!
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
11y
@Linda Weygant congrats. If you get enough of them you will want to get on the board so you can control the fees and costs. How are you doing your financing since you now have more than the magic 4 properties?
These are two condos in the same complex where we already have Rental #3. These are solid, base-hit condos. We didn't get an awesome deal on either one, but neither are the deals anything to be ashamed of.
#4 is a 2 bed, 1 bath condo that is turnkey. Bought it for $127,000 and have had lots of interest and showing on it at $1250/mo rent. Expecting about $430/mo cash flow. I have applications in and am just waiting for the reports to come back from Smartmove now.
#5 is the same floor model as #4 (and #3, coincidentally). Bought it for $119,500 and it's also going to rent at $1250. Expecting about $450/mo cash flow. Needs some paint and some other minor repairs that will probably all come in at less than $1000. Have applications in on this one as well (hurry up people, click the button, send the report!)
2 years ago, these units were going for $40,000. Last December, we picked one up for $85,000 and now, 6 months later, they are at $120 - $125. That's the Denver market right now. There is already another unit listed at $130 and it'll go for that, I'm sure. I'm not counting on appreciation, but if I had to speculate, I'd say these will be at $150-$160 in another 8 months.
Cash flows are very good! wonder if you put down more than 25%?
@Linda Weygant congrats. If you get enough of them you will want to get on the board so you can control the fees and costs. How are you doing your financing since you now have more than the magic 4 properties?
Agreed Bill - getting on the board is a great idea, however I've been over their financials with a fine tooth comb and I honestly have no issues with the way they are currently running things. It's one of the healthiest HOAs I've seen.
Properties 1 and 2 were financed with conventional loans. Property 3 was bought for cash through a SDIRA. Therefore, I technically still had room for two more conventional loans. Unfortunately, these two condos are in a non-warrantable complex, so I had to go with a portfolio loan, so I did not do a very good job of maximizing my mortgage loans before moving to portfolio.
I went through First Bank here in Colorado. I had an amazing loan rep by the name of Jenna Venoitte who I would highly recommend for professionalism, flexibility and being the calm in the storm when I had a wire transfer that I was expecting come in late.
Investor · Carmel, IN · Member since 2014 · 332 posts · 245 votes
11y
Congratulations, Linda! You are rockin' & rollin'.
We also used First Bank and they were great! The banking institution is pretty good, but if you can find an excellent banker (and they "get it"), it makes a world of difference.
I look forward to hearing about Rental #6, 7, 8, 9 ...
Investor · Littleton, CO · Member since 2014 · 31 posts · 11 votes
11y
@Linda Weygant- Congratulations! In a tough Colorado market, positive cash flow should be celebrated, especially with HOA included. Even with 25% down, I have shied away from properties with HOA believing the numbers could not work. Appreciate you sharing this story and agree on getting to 10 properties before rates increase.
Just hope the Colorado market doesn't hit a bubble in the near future.
I must be crazy. Putting an offer in on #6 today. Cross your fingers for me!
You are a little crazy, but this might be in the good way. I think your original timeline is out the window at this point. Just cut a few years off the end and that seems more accurate.
You're right. The original goal is out the window. I started January 2014 with the goal of 10 houses in 5 years.
I'm at the 1.5 year mark. So I think it's either going to be 10 houses in 2.5 - 3 years or 15 houses in 5 years.
I do think I need to slow down now. My real estate agent and my mortgage broker are threatening to put me in a 12 step program. Although that'd be like a bartender and a bookie making the same threat. Definitely not in their best interest...
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
I suppose you are financing for long term-30yr.
I think I like your deals better at 85K. Especially with shorter term financing. 1250 rent on a $125,000 house would encourage me to wait on the market. Maybe. The market could keep moving up. Rentals are hard to find.
Is your cash flow before vacancies and maintenance?