All Forum Posts by: Bridget Brazelton

I'm in the Denver market, so this may be irrelevant, but for reference I just paid $700 for an inspection on a 2-story 4plex.

Hey Dan!

 I'll say this: I've heard a whole lot of investors say "I wish I would have gotten started in real estate investing when I was younger." I commend you for being here already, and I have a different perspective than what's been said so far.

Yes, it's scary you'll be graduating with student loans. But your degrees in finance and accounting will probably lead to a well paying job, and that'll help you get a loan. Make sure you run all of the numbers (and with those degrees I have no doubt you will!), but if house hacking helps you SAVE money every month over renting, then not only are you building equity at an extremely young age, but you'll be able to use the savings to help you pay down those student loans faster, if you so choose.

Seems like a smart move to me!

@Mike Workman

We are interested in acquiring more multi-families in the area. Sent you a message.

@Kevin Noonan

Hey Kevin, this market isn’t easy but it’s far from impossible. My partner and I have investments in Denver, Aurora and Colorado Springs and have managed to engineer cash flow out of each of them. I was stuck in ‘analysis paralysis’ for a long time, and here’s what helped me:

1) Think creatively: It’s easy to run cash flow calculators on properties around Denver and get discouraged at the results. I started researching different cities and learning where I could rent by the room to increase cash flow, or zoning districts where I could have or add a second kitchen to operate one property as if it were two, for example.

2) Follow Development: My first purchase in Denver was 5 blocks from the Purina factory in a, shall we say, ‘up and coming’ neighborhood. But you know what? I’m an unapologetic nerd and had been plotting where projects were taking place in Denver (Literally. In my office. With color coded pins. On a map.) I knew there’d be a walking path directly into RiNo soon, the highway would be placed underground with a park on top and that a nearby complex was undergoing a billion dollar renovation. Three years later it has provided me with almost free housing (thank you house hacking), and massive equity. I used a similar strategy to determine where to buy my first rental in Aurora. If it doesn’t cash flow, I won’t buy it, but buying in the path of progress gives you your best shot at increasing future rents and equity.

3) Reach Beyond the Keyboard: I overanalyzed everything before my first deal, and I largely did so alone and lurking on forums like these. It’s not until I reached out and started building a team and networking with other investors over coffee that things really began to move for me. We all have a passion for this or we wouldn’t be here, and it’s energizing to know you’re not alone!

@MarieChele Porter

Trust 👏 Your 👏 Instincts 👏!

Then, develop your criteria for what does and doesn’t pass muster in the future. Let me ask you this: If you were developing these criteria now, would ‘murder conviction’ fall into the pass or fail column? Personally, I wouldn’t touch this one. You’re already worried about how it could burn you. Even if it doesn’t, you might lose sleep constantly wondering if it will, and that’s bad enough.

I’ve seen (and had) this go both ways. As others have said, some people just know what they want. If your marketing materials showcase the property well, they walk in and it lives up to what they saw online, that’s enough for some folks to make their decision. If they meet your qualifications, that’s a win-win. I’ve had tenants who’ve moved from out of state and are staying in Airbnb’s until they find a longterm rental, and they want to start their leases right away. That’s great!

On the flip side, please learn from one of my greatest mistakes. As a new landlord, I did a showing where my ‘spidey senses’ were telling me something wasn’t quite right with a prospect who wanted to sign right away, but I couldn’t put my finger on anything tangible and proceeded because I wanted to keep zero vacancy in the house. She passed all of the credit and background benchmarks, but something just felt ‘off’. One week later I learned that her boyfriend had kicked her out due to an out of control substance abuse issue, and had sobered her up for a day to get her out of his house. This rental was a rent by the room, and she was incoherently walking around the house naked, eating the other tenants’ food. Nightmare? Massive understatement. It was the biggest mistake I’ve made as a landlord and caused me a toxic amount of stress and time to rectify.

Lesson? TRUST YOUR INSTINCTS. Every situation is different. If they don’t ask questions, it doesn’t mean that you can’t. Sometimes it’s fine, sometimes it’s not fine. A casual conversation is usually enough to tell the difference.

This is hard to answer because every situation is different. However, here’s my two cents (assuming you already have the cash to buy your next property):

Keep Property #1: Focus your energy on identifying and purchasing Property #2. This time you’ll analyze it from the beginning to ensure it’ll make sense as a rental when you decide to move out.

Rent out Property #1 for one year. Sure, your projected cash flow isn’t ideal, but you’ll gain EXPERIENCE, and that’s invaluable. You’ll have a relationship with a property manager, you’ll have experience in turning a property into a rental, and have real data to use for calculating future returns. No amount of reading can replace getting out there and DOING IT. The first time is the hardest.

After one year, use your newfound confidence and re-evaluate. Can your 30k (or hopefully more at that point) be better utilized elsewhere? Valid question, and all part of the game, but one that you’ll be able to more confidently answer with some experience under your belt.

Good luck and keep us posted!

Even right now in Denver you can rent to a third unrelated adult with a $10 home occupation permit (It’s guaranteed if you apply for it. I have one on a house hack that was reported to the city years ago...that’s another story, but I think most people would tell you my experience was rare). I wouldn’t bother with this unless you run into trouble. And, like Matt mentioned, the group living rules proposed to city council will, if approved, move it up to 5 unrelated.

None of us have answered your specific question about R-MU-20 zoning. I know it’s residential mixed use but I’m not personally aware of any different restrictions there in regards to the number of unrelated adults.

@Account Closed Airbnb regulations in Aurora are similar to what Lia explained about Denver; it must be your primary residence. They consider it a home occupation.

Aurora does however allow up to 4 unrelated adults per single family residence. I own a 4 bedroom home that I rent by the room there and it cash flows nicely.

Aurora short-term rental regulations:
https://www.auroragov.org/resi...

Hi there,

I’m looking for people to network with that utilize a rent-by-the-room strategy. Does anyone have a lease they use for this scenario? Do you put all tenants on one lease, or have individual leases for each occupant?

As a follow up, my lender was unsure if (for example) he could use three different bedroom leases as income on a single family property to qualify toward my next loan. He thought perhaps only one or two. Has anyone run into this scenario? If so, how have you overcome it? 

Thanks!

Bridget