All Forum Posts by: Ben Einspahr

@Austin Berlick I have had excellent experience with floor models at home depot and FB market place. With 5 people living there, would also be worth considering an additional refrigerator in the garage.

@Justin Swain 2 thumbs up to comments already posted. Going under the assumption that you already have an agent, this is info they should be able to provide. If you do not have a agent yet, great! Now you know the questions to be asking them. 

BP is a great location for find agents and lenders. 

Also, google the FHA self-sufficiency test and make sure it can pass it.

@Kenny Smith great question! Specifically for Denver Metro Market I do not think demand will slow down at all in the upcoming future. 

However, I think supply will start to outpace demand making it appear that demand is declining. 

 very jealous of that basketball court !

@Katie Treacy I would start attending some local REI meetup. On BP under learn tab you will be able to find some local events.

I personally do not think Wheat Ridge is a risky STR location to invest. STR license are starting to run out though.
https://www.ci.wheatridge.co.us/1787/Short-Term-Rentals

I have a Denver ADU STR case study you will find interest in. Happy to share the details if interested.

Hello BP Community! Want to highlight the details of Bartleys first house hack purchased in April of 2023. Bartley was ready to move! From the time we connected to the time he was under contract was less than 7 days!

Investment Info:

5 Bedroom/ 4 Bath

Main House = 3 bed/ 2 bath. After we move out, will be rented out as a unfurnished long-term lease.

Mother-in-Law = 2 bed/ 2 bath. Renting out as furnished medium-term rental.

Purchase Price:

$523,000

Closed April of 2023

Cash Invested:

$38,000

What made you interested in investing in this type of deal and strategy?

We wanted to add to our rental portfolio while also in need of a bigger house due to our growing family.The thing we really love about the house is the huge, well taken care of backyard that gives my family plenty of space for outdoor activities.

How did you find the deal and did you or the agent need to do any negotiating?

Our agent, Jeff White found the deal for us. As soon as we saw the property, we knew we would love it!

How did you finance the deal?

5% down conventional loan

6.99% int rate

Did you add any value?

Yes. Here is a list of the value adds. All of this was self performed on the weekends and evenings after work.

• -Painted entire house (both units)= $600
• -Added a fence in the back yard to give both parties privacy= $200
• -Furnished the upstairs unit= $2,000
• -Added 2nd washer and dryer so each unit had their own= $500

Total costs= $3,300

@Hansel Gunawan  If you purchase a home using low downpayment with the intent to live in it as your primary residence, generally speaking you must live there 12 months before purchasing next primary res home. There are a few loop holes that I will not dive into here.

From a lending prospective, there are not restriction renting out a primary residence while living there. However, they will not underwrite the property using rental income received while living there.

So, if you buy 3 houses only one can be your primary. The other 3 will be investment properties with minimum 20% down.

@Thornton Drury big congrats on the transaction. Good to know it is a 4 unit. Assuming all lease are unfurnished and greater than 1 month.

Unit you are living in will be standard home owners insurance. The other 3 will be rental dwelling insurance. Make sure all tenants have renters insurance. To make things easy, have them send it the proof of insurance in with first months rent.

Also, would recommend 1-2mm dollar umbrella policy.

I am a pretty frugal person but insurance is one thing I do not try to cut corners with. That and tires :) (very unrelated!)

Disclaimer: I am not an insurance expert, just a guy that loves HH'ing

@Ryan Thomson. Great writeup! 

1. When setting tone early on for rent by the room management, how do you handle common area cleaning? Yes, the typical leave it how you found it works but how about typical vacuuming and disinfecting common surfaces? Do you hire out, DIY, or create schedule for tenants?

2. Apartments.com is great tool for longer term rents. Little more difficult if lease lengths are shorter with high turnover finding the right tenant. Don't like how rent is received 7+ days into the month but great from auto billing late fees and avoiding those harder conversations. 

3. What do you find to be fare monthly rate for all utilities?

Thanks

@Katie Treacy welcome to BP! Thank you adding your goals to the post. Super helpful! 

Goal 1-  If I was in your shoes, here are 2 options I would start with to target properties that fit your criteria:

1) Off Market- connect with local wholesalers in the market and let them know what you are targeting and what your end use of it would be. Happy to connect you with some.

2) MLS- Keep it simple and set up specific searches on a website like Zillow to pick up on they key words you are targeting (if you have not already).

Goal 2- These are all excellent areas! Unfortunately Denver Metro STR rules and regulations can be pretty tight when it comes to non-owner occupied STRs. Only one of the 1 locations you mentioned allow STR investment properties.

How much capital are you looking to invest? 

Based on your two goals, your best odds will be in a STR in an STR friendly city like Arvada, Wheat Ridge, Unincorporated Adams County, Northglenn, etc.