All Forum Posts by: Chance Noffsinger

Quote from @Chance Noffsinger:

What are some of your favorite local meet ups? We're in Louisville and have investment properties in Boulder, OH, and Houston. I'm never keen to drive to Denver for meetups. Also, happy to discuss some of our biggest mistakes and biggest successes in our real estate journey.

What are some of you local meet ups? We're in Louisville and have investment properties in Boulder, OH, and Houston. I'm never keen to drive to Denver for meetups. Also, happy to discuss some of our biggest mistakes and biggest successes in our real estate journey.

We have a bungalow with a garage apartment in the Greater Heights. It has never flooded. Our insurance jumped from $2400 to $3800. This seems excessive and our agent has not responded to our requests for more information. Does anyone have an insurance agent that they recommend? We're in CO and use Allstate for our local properties and State Farm for our OH property. Thank you for your suggestions.

Mike, I hadn't considered a cash out refi and I think it make the most sense. At a 75% LTV, there would be plenty of cash to get started on at least 2 new properties.

I agree with both of you, Matt and Christopher.  I just need to convince the wife.  She is very emotionally tied to our Boulder property.

Matt, I most likely wouldn't consider Boulder for a next property.  That ship has sailed in my opinion.  The cash flow to property value just isn't there any more.  I believe I could come up with enough downpayment money to purchase at least one home per year outside of Boulder (i.e. 400k and under) and might consider a partner on first few deals to accelerate things.

Well, to Greg's response, I just joined a local REI meetup group (thanks, Whitney) that is meeting tonight. I'd like a few more opinions on my current property at the meeting tomorrow night.

Thanks for that info Noe.  My current CU doesn't offer LOCs on rental properties.

You aren't far off, Greg.  I went back to my spreadsheet for property and I am losing $2400/year currently.  The problem I have with selling it today is that it has appreciated 15% per year for last 3 years.  This year looks like it will level off to single digit appreciation, so selling soon may be a good option.  Although it appraised at 690k about a year ago, local comps should have it selling around 720k. Balance on loan is about 280k, so roughly 440k in equity.  My current tenants have a lease until May, I believe, which gives me another $5500 in equity.  So 445k in equity, minus realtor commissions leaves me with roughly 400k net.

BARRY strategy should have said BRRRR. Sorry about that.

Mindy, no, I wouldn't even consider another property in Louisville or Boulder unless someone was practically giving it away.  I am keeping options open to rest of state, but not in the extremely expensive zip codes.  Broomfield County would be good.  Close to home, so easier to manage.

As far as financing next deal, we would either save the cash and/or access a LOC on our Boulder rental.

I actually am not cash flowing on our existing rental. I am just barely breaking even or possibly losing $100/month by the time I figure in cap ex. 

Honestly,  what my wife and I want out of investing is more financial freedom, to run our own business,  and a laundry list of other reasons. I have been in sales for 20 years and I am tired of making 75 cold calls every day. . 

There is so much opportunity here in CO in real estate and I get very excited thinking about finding those hidden gems of houses. . It keeps me up at night thinking about hunting for that next house. 

I never thought about pulling all our cash out of rental and being cash buyer. Very interesting idea. I'd prefer. What I would like to do is look more into Brandon's. BARRY strategy with a private investor on next house. Since I am so inexperienced,  I assume I'll have to bring at least a little money to the table to seriously be considered by a partner. . Any thoughts on that strategy?

Andrew, the reason for the 15 year was that it was my primary residence and the rate of 15 year was substantially lower the my original 30 year.  At the time, I didn't know that it would ever become my 1st rental property.  My wife and I both have very good jobs, so we don't need the cash flow for anything in particular.

The rest of your post does make very good sense though.  Our goals have massively changed recently as we have decided to jump into real estate with both feet.  Right now, I am just educating myself as much as possible and hope to buy my next property within 3 to 6 months.