All Forum Posts by: Account Closed

Hi Tracy - 

I agree with @Bill  -  I don't know that these number make a lot of sense. What is your overall budget for a place? Using $30k as a starting point, it would seem that the overall budget would be anywhere from $300-600k which has a large amount of variation into the property to buy. 

To me, it seems like you are talking about is more of a communal living/roommate situation, which is not uncommon in the Denver area and I had looked into pretty extensively.

There is a FB group that would be helpful to look into: https://www.facebook.com/groups/rentdenverhousing/

Have you ever lived in this sort of situation before? It's not for everybody, and you will be managing the property (and the tenants) 24/7. Unless you find a place with a MIL apartment you won't really have much privacy, since every room that isn't a bedroom is shared. 

Depending on the number of rooms parking could be its own nightmare (think garages, parking spaces, being blocked in, etc.) The tenants willing to live in this sort of situation I don't think will be willing to pay $900+utils. If I were you I would budget more around $600 (including utils) as more realistic.

This sounds like so much work to oversee. Potentially, you are managing 4 month-to-month leases, along with everything that comes with that - it can be a ton of work dealing with vacancies and screening tenants on a 12 month lease. The longer of a lease that you sign the less you will have to deal with this aspect. 

What about security deposit? What if one tenant knocks a hole in a wall and then leaves without paying?

Are you using other comparable properties (5+br, communal living/roommate) or are you looking at 1br apartments as comps?

If you are looking at Airbnb as a backup - just know that Denver requires you get a lodger's tax ID, taxes 10.75%, and you are only allowed one listing (so you can either list a single room or the whole property, but not multiple individual rooms). Plus there are a lot of upfront costs for furnishing/decorating a vacation rental, even on the cheap. 

@Bill S.undefined