All Forum Posts by: Cole Leonida

Hey everyone,

My wife and I have a primary residence that we are looking to cash out refi. We have been in the home for about 16 months and we are planning for me to take a new job and move to another state. We would like to cash out refi to a much lower rate and take some cash for our next home purchase. Any issues I should be aware of before refinancing and renting? As of today, I have not accepted a new job so I don’t have any actual plans of moving, that is just the hope. Any advice you avoid any tax or legal issues would be great!

Thank you!

Cole

@Chris Freeburg you’re absolutely right, timing the market is risky business and that’s not our primary strategy. We would love to be able to get a discount but in talking to them a little more, it sounds like the wife is excited about the impending bidding war to drive the price up.

Is there any strategy to add value on an off market deal? I know it would save them the hassle of staging and cleaning and getting out the house for showing, but is there any way I can communicate and provide actual financial value with them selling to us off market instead of listing?

@Brian Gerlach we cannot house hack and can't list on AirBnb (HOA rules). It seems like the best bet would be corporate rentals or long term rentals. As we dive further into this, it seems like an unlikely fit because the numbers are just too tight. I'm not sure how people purchase properties for rentals in a market like Denver if they have any financing involved. Rent rates are just not high enough to cover the expenses associated with properties that have appreciated this much.

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@Duane Alexander great idea. I just joined and posed the question. Thanks again!

@Duane Alexander thanks for the other side of the coin. Anything I should look for in a good title company/closing attorney?

@Corby Goade thank you so much for the input! I would honestly much prefer to use a Realtor but I’m just trying to understand the options because this was the first thing the seller communicated. Just in the first two comments on this post I have gotten some great info. I just don’t want to miss out on what I believe to be a great deal because of some aversion to a Realtor.

The overwhelming recommendation from forums and books has been to use a Realtor because the value much outweighs the cost. I certainly agree, but I’m trying to learn. You don’t know what you don’t know so I am thankful for the info!

@Jason Richards, thank you for the reply. That is very helpful information. We have used a great Realtor in the past and we certainly understand the value, but we are hoping to negotiate a good price and this seems to be a sticking point. I love the idea of paying the Realtor ourselves, that's worth considering further. 

Thanks so much for taking the time to share your insight. 

Hello everyone. My wife and I have been looking for our first flip in Denver and it has proven to be a challenge to find a good deal. We have recently come across a potential deal with a neighbor that is looking to sell their home, as is, for a big discount. I have used the BP fix and flip calculator to determine it is a good deal and definitely worth pursuing. The seller has requested that no Realtors be used, for the obvious reason of saving a few bucks. We are prepared to purchase it as is and we have already had our contractor (whom we trust very much) walk through the property and determine it is likely a lipstick rehab. I have read several old forum posts about purchasing without a Realtor and I have noticed many real estate agents caution against it for one reason or another and then it seems investors, particularly experienced ones, say its no problem to purchase without a Realtor. 

I have a few questions:

1. 1. What are the major concerns in not using a Realtor on either side of the transaction and is there any way to help avoid them?
2. 2. What are the necessary steps from the buyer's perspective in this type of situation?
3. 3. Is there a good place to find purchase contract templates to use?
4. 4. Do you have personal experience in a similar situation that you could share with us?

As always, thank you in advance for your insights!

-Cole

@Brian Gerlach thank you for the input! The property is worth $610k right now but we could likely get it for $580 or $590. Not much of a discount but properties have appreciated about 10% in the last year. Obviously that is not a realistic ongoing expectation but we believe going into spring value should pop again if we want to turn around and sell for a decent profit.

As for rentals, we believe furnished corporate rentals might be a great fit with the hospitals nearby. I am not sure where to look for help with placing tenants or corporate rentals. Any advice would be fantastic!

Thank you!

Hello everyone!

I’m new to BP but excited to be a part of the community. My wife and I have been kicking around the idea of getting into real estate investing for the last year or so. We have been considering flips but we were recently presented with a potential opportunity to purchase our neighbor’s home with the hopes of renting it out. I would love some input and feedback on the opportunity. Thank you in advance for all of your insight!

We are located just south of Denver in Highlands Ranch. Our neighbor is selling their home in a new community in the homes are barely a year old. We would like to present a cash offer using a family member as the capital for the purchase. The problem is we are unsure of what we could get for rent in this particular neighborhood. We are right next to two different hospitals and we are in the middle of the Highlands Ranch master plan community that is fully developed at this point. Location is fantastic, however, comparable rents that we see in the area would not cover the mortgage and monthly expenses.

Obviously this sounds like a bad deal, however, being new to the real estate investing game I found a service online through Nomad that is offering guaranteed rent for two years of $3000 a month which would make this a deal that we would be willing to take. It is a single-family home and we are just uncertain of how services like Nomad work and whether or not there is a catch to be aware of. Any insight on services like this would be greatly appreciated.

As a secondary option, if rental is not a viable investment choice here, we have considered a cash offer to the seller with a month or two hold period and in the Denver market we could see a meaningful appreciation going into spring and summer. If we could get a cash offer excepted at a discount, would this be a good strategy to dip our toe in the water with real estate investing?

This is all happening very fast but we feel it is a great opportunity and don’t want to miss out because of fear or uncertainty.

Thank you all for the advice!