All Forum Posts by: Ben Einspahr

@Tucker Myers Way to be proactive and start thinking ahead. I remember back in the day when I was one year away from graduating college and my dad mentioned that I should buy a 4+ bedroom house house had rent out the spare rooms. He would cosign and help me out with downpayment. That went in one ear and out the other haha. Thinking back, I wish that I would have taken him up on his offer. Instead, I more focused on my next beer and chasing girls :) You are in an excellent position because you have time on your side!

In one of your responses, you mentioned that you would be renting in Aurora. Is there where you would like to HH or are you interested Northern Colorado?

Some of this might have already been covered above but here is my 2 cents:

Multifamily House Hacking- When researching house hacking, one of the first things you will find is house hacking a multifamily. That is very tough to execute in the front range. Mainly due to financing. Google FHA Self Sufficiency test. Where you would find your most success is 5+ bed homes to rent by the room. Even better if they have additional kitchen/kitchenette.

Lending- whether you are 3 months or 18 months out, I would connect with an investment friendly lender now. That will give you a good understanding what your buying power looks like now and could look like in the future. This lender will help you get a better understanding for multifamily financing as well.

Lending Qualifications- We are currently working with a recent college grade and running into challenges with home much he can qualify for and it really restricting his options. He is now working with his dad as a co-signer to boost the amount he can qualify for. Game changer.

Education- This goes without saying but education is very important. I just put together a 6 part analysis house hacking in Colorado (including analysis on some current single family homes and off market multi's). Ill DM you the details

Network, network, network!- Find yourself a some networking groups to connect with and hold you accountable on your short and long term goals.

Last thing- consistency is better than finding that perfect house hack.  Base hits win championships.

Keep on crushing it. Best of luck!

@Account Closed I am not familiar with the Riverside market but I am confident that you would be able to pull in higher rent per room then $700/month. Here in Denver and surrounding cities it is common for a room with shared bathroom to pull in $800+ per month. 

When you say negative cash flow, does that mean after moving out and turning it into a stabilized rental? Depends on how much negative. But cashflow is just the tip of the ice burg when it comes to REI. You could still be slightly negative cashflow after moving out but it can be a huge win from a few different standpoints
-you have already decreased your rent while living in the house hack

- you purchased a future rental property with 5% down.

- your return on the 5% down is typically 75%+. I don't know anywhere else you can park your money that will give you that type of return

Here is just an example if you were to break even after moving out.

 @Chelsea Lingenfelter yes. Definitely use FF. That is where i get a majority of my 30 + day stays. Website is very clunky but effective. Also great for finding good MTR comps.
Important to link you airbnb calendar to FF calendar. Last thing you want is double booking. Very easy to do through with a few google searches.

 @Andrew Tyree not familiar with CA loan requirements. Does FHA self-sufficiency test apply in the state of CA?

@Kenny Smith all great points! I would have to agree with you. With its great price to rent ratio, most of our clients are purchasing north of I70 and west of I25.  At a quick glance, less than 15% of our investors invest in Denver County for some of the reasons you mentioned above:

- much higher price points

- licensing requirements.

Might make for a great area for a forever home, but not investment property.  Also seeing Northglenn become a popular location as well.

@Nicholas L.

your own back yard

house hack

keep it simple

base hits win championships. not grand slams

best of luck

great listen!

@Chelsea Lingenfelter, First I must applaud you for putting your listing out there for all to view and criticize. Second, for not taking any of them personally and being open minded. There are 2 things I would add that have not already been mentioned.
1. I would get some new sheet set. something simple off amazon to brighten it up a little, yet easy to wash. Duvet covers are key b/c comforters are a PIA to wash.

2. I would spice up the exterior a little but with some new mulch. After you grass has came back and it looks nice and green, take some new exterior photos during a nice bluebird day.

3. consider allowing pets with additional pet fee... hard pill to swallow but lots of pet owners out there. If you do decide to go down that route, know the ins and outs regarding service animals and emotional support animals.

But, your biggest bang for you buck will be professional photos :) Keep on crushing it.

@Mike Primsky this is a great question but I hate giving such an open ended answer, but it depends. Are you looking for long term wealth or immediate cashflow? Looking for more of a passive investment or active.

Numbers still work in todays market at 7% interest... But you answer your question, I would invest it in a mixture of Active RE (rentals) in Colorado Springs Market. Just as robust market as Denver but little bit lower price point. I would also take some of that 500k and invest it in some Passive Investments. Heard lots of great things about Ironton Capital. Based out of Denver.  This is what we have had a lot of our investor clients do in a similar position as you and happy with the results.

That way your are still invested in RE but have some diversity. Happy to send more details and run through some numbers with you.

Hello @Austin Haygood, I am going to second what @Chris Seveney mentioned. LLC overkill. Just starting out, any good attorney out there will tell you good insurance is your first line of defense. Keep it Simple. I will send you so great free resources i have found helpful.