All Forum Posts by: Chris Lopez

@Sarah O'Neal

What are your investing goals? If it's cash flow, then as @Robert Herrera pointed out, you can do way better. If cash flow isn't the number one goal, that's a different story.

That is an amazing location and you'll more than likely make a lot on appreciation. Buy, appreciation doesn't pay the monthly bills!

The cap rate looks normal for the current state of the market.

However, my biggest concern is the year it was built. 1891 ?!?!

I think the listing agents are using the word "turn-key" very loosely.  A new roof and hot water doesn't mean much on a property that old. 

Have you ever lived in an old property? Things are always breaking. I currently live in a 1940's construction house and have trouble finding replacement parts for plumbing and electrical. 

To me, turn-key would be a remodel from the studs up! There are a lot of mult-units with similar or better cap rates.... with quite a few less years on them. 

I've recently jumped into the researching the multi unit world in Denver. I have some past experience from L.A. I'll send you a message with a couple of things.

@Bo A Vanecko First, the standard disclaimer that I'm not tax professional....

The best answer is that I'm not entirely sure. I know from previous businesses that I've run, that if I traveled somewhere (regardless of the outcome) I could write off the mileage and other expenses.  My guess, is that you probably can because you are legitimately looking at properties and doing your due diligence. 

Perhaps someone with more knowledge can chime in.

Definitely, keep track of everything.

If you have the time, read a book or do some research. Years ago I read Sandy Botkin's "Lower Your Taxes Big Time." It's more geared towards the business owner. I can't remember how much overlap there is (if any) for real estate investing.

There are some great apps for smartphones that track mileage as well. Way better than paper tracking.

@Bo A Vanecko Definitely go visit and drive around. Don't forget to write off the mileage either! :) 

6% PM fee is very good.

I don't know the area. But focus on the quality of your team. 

As long as you have a good, solid, trusting relationship with him, it could be a great opportunity. Also, don't get too excited and overlook the fact he has a financial interest in you buying properties down there. Now, I'm not criticizing that, just saying keep that in the back of your mind.

This webinar is continuing on our deep dive into Denver multi-units. One of the best ways to learn if multi-unit investing is right for you is by analyzing deals!

Main topics:

- Analyzing active multi-unit deals

- Comparing multi-unit vs single family investing

Thanks to @Charles Roberts, we're able to access CoStar, which is the #1 information resource for commercial real estate. It'll help provide greater insight into the mult-unit world.

Presenters: Charles Roberts and Chris Lopez

Charles Roberts is a Certified Commercial Investment Member. (CCIM), registered appraiser, registered loan officer and licensed Realtor. He has invested in Denver real estate for the past 18 years, completing several dozen fix up projects along the way, and currently owns and manages his own portfolio of properties

Registration: www.denverinvestmentrealestate.com/webinar7

Cost: Free 

Time: Thu, Oct 12, 2017 10:00 AM MTN

@Ryan Hebert I think it's a good idea to compare rent and price appreciation between markets. However, getting as granular as 1br, 2br, etc, is a fools errand. I doubt you'll be able to find that specific information. I really doubt there's a big difference between appreciation between 2 and 3 bedroom units in the same metro.

You can break it down to detached single family, attached and multi units (2-4 and 5+).

Getting more detailed than that hits a point of major diminishing returns. I'll send you over data that we put together for the Denver metro. It's published every quarter and is a good balance between details and the big picture. Hopefully it'll help you put the puzzle together.

Definitely look at population and job growth for the future! If an area has declining population, I will not invest there. Bottom line, if there are no people to rent or live, your asset is not going to appreciate. I don't care if it cashflows great... if it's in a declining area what happens to your IRR when values and rents don't appreciate? You know the answer... inflation eats you away!

@Jeremy Ansah-Twum You'll be able to find good deals with a 280k budget. Is there a certain cash on cash or cap rate that you're looking for?

Have you talked with a lender yet? 

Chris

@Jeremy Ansah-Twum welcome to BP! I agree with Bill's comments about setting up keyword alerts on the forum. It's lead me to meeting some great people and reading some very interesting topics.

Don't spend too much time behind spreadsheets and listening to podcasts. Checking out properties gives you a "reality check" education as to how far your money goes and quality of the neighborhoods. 

There's a good event coming up on Oct 28 called the Investor Success Summit: https://www.biggerpockets.com/forums/521/topics/495654-real-estate-investors-success-summit

If you're able to attend, let me know and we can say hi.

@Bo A Vanecko I think you would enjoy "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" by Frank Gallinelli. It's $15 on Amazon. It's the only real estate book that I've ever read more than once. Packed full of great info on how to evaluate properties.

@Thao Kieu Don't use https://www.realestateexpress.com/ I started with them and dropped half way through. Their content is horribly written. Just do not use them!

I used https://www.vaned.com/ and really liked them. They have  a 7 day free trial too. Highly recommend them!

@Tim Schroeder

Airbnb vs LTR: If you go Airbnb, make sure the numbers can still work (or you have an exit strategy) for converting to LTR. Denver has banned short term rentals unless it's at your primary residence. Will other areas follow? who knows... but worth considering the 'what if.'

Best area? Talk with @Travis McChesney about Pueblo. He just bought a rental property and Pueblo was on the list, but quickly got crossed off. I don't know the details, but it wasn't positive!

Have you looked at properties yet? My recommendation: Find a realtor in each of those areas and spend an afternoon looking a 5 or 6 properties. I think it's the best way to get a feel for the market, areas, prices, etc. Plus if you're with an investor friendly realtor, you'll gain a ton of insight. It's about finding a market and property that is good for you.

BRRR is tough with the current market. Many homeowners know they can list their run down property and still get multiple offers. Very hard (not impossible) to find a deal where you can actually pull out all the money in a true BRRR scenario.

Have you looked at condos or townhomes as rentals? SFR's (fixer up or turnkey) are hard to find. Attached properties are providing good returns now. @Charles Roberts  and I have found good deals in Aurora for clients. They are turnkey for the most part and ready to go. Definitely, put Aurora on the radar.