All Forum Posts by: Greg Weik
Greg Weik has started 9 posts and replied 244 times.
Post: Growing the Colorado portfolio
- Property Manager
- Denver, CO
- Posts 256
- Votes 322
Hi @Dan Barr, there are a lot of directions you can go with BRRRR, and my recommendation as a local investor and owner of a PM company is to check out Englewood for some great deals. 80113 as an example area code.
Englewood has great, older, smaller homes, many of which are on large lots. Tons of BRRRR potential. Rent rates are very high in the area, with 2/1's sometimes renting in the low $2,000's/month.
As for condos, I'd pass. You can buy and hold but there's really no point. Too much supply currently, plus what's coming online. No real appreciation possibilities and turnover is higher and vacancy longer.
Good luck - let me know if you need any help with those 7 doors.
Post: Why Do You Invest in Colorado &/or Colorado Springs?
- Property Manager
- Denver, CO
- Posts 256
- Votes 322
Originally posted by @Dashiel C Neimark:
Hi all. I too am considering exploring a few areas to invest in (between Boulder and Denver as well as possibly Colorado Springs).
I've heard a lot of folks say that it's too late to invest in the Denver area. Is that necessarily true? I was looking at Westminster/Superior/Broomfield, places with access to public transit to Denver and still within 20-30 mins driving distance to Boulder. Potentially buying a house for myself, living there a few years, then renting it out. Or perhaps house hacking right off the back with a duplex. Just curious is anyone had thoughts on those areas. Thanks!
Hey Dashiel, I own a property management company and we manage all around greater Denver. The areas you mentioned - Westminster/Superior/Broomfield are all hot areas. Particularly Broomfield.
Also, my personal recommendation would be to buy in an established neighborhood with no HOA - something you can pull off in Broomfield.
The market around greater Denver is not even close to being "too late" to invest in. You just need to know what to buy!
Post: More on buy and hold
- Property Manager
- Denver, CO
- Posts 256
- Votes 322
Investment Info:
Single-family residence buy & hold investment in Aurora.
Purchase price: $500,000
Cash invested: $125,000
This is not what most would seek out as a rental, but my experience owning a residential property management company has shown me that this type of house is actually the safest and most lucrative buy-and-hold type of property. Also, it's very liquid, as far as real estate goes. There are myriad reasons I'm drawn to high-end, expensive-ish single-family homes.
What made you interested in investing in this type of deal?
Appreciation and equity build-up. This home will appreciate steadily and likely with the same set of tenants. 5% appreciation annually of a $500,000 home means I make $25,000 in year 1, just by owning it. It cashflows and attracts the best kind of tenants - stable, higher income. By setting a minimum 700 credit score, we were assured good tenants.
How did you find this deal and how did you negotiate it?
Open market property, paid asking price. Found this deal after many months of searching for 3 car garage homes in this very specific area, at or under $500,000. This was and still is, the only home that meets the criteria. This, along with the upgrades made to the home, will ensure high desirability (and high rent) for many years to come.
How did you finance this deal?
$125,000 down, 30 year fixed.
How did you add value to the deal?
Replaced all the gold (hinges, doorknobs, etc.) with brushed nickel. Updated all light fixtures. Replaced original formica with granite. Installed pulls on cabinets. Replaced all appliances and converted electric range to gas. Improved landscaping.
What was the outcome?
This will be a solid rental to own for many years.
Lessons learned? Challenges?
Coming up with $125,000 cash to put down plus 6 months reserves for all properties is a challenge.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I own the top property management firm in Denver - Real Estate Solutions - and it's now managed there as well.
Post: Buy and hold strategies - what and why
- Property Manager
- Denver, CO
- Posts 256
- Votes 322
Investment Info:
Single-family residence buy & hold investment in Centennial.
Purchase price: $500,000
Cash invested: $100,000
Single family home in a desirable Denver suburb with no HOA. Consistent rent, stable tenants, stable appreciation. This is the ideal buy and hold.
What made you interested in investing in this type of deal?
A single family home in an established neighborhood (with above average home prices) and no HOA is the golden investment for a few reasons. 1) Rents are high and demand is very high. 2) The demographic of tenant is desirable (high income, high credit), 3) The demographic of tenant is very unlikely to cause damage, 4) The demographic of tenant is likely to stay for a long time, 5) The high purchase price means appreciation and equity-build come at a greater clip, etc. etc.
How did you find this deal and how did you negotiate it?
Open market. Negotiation was unnecessary and is often over-rated.
How did you finance this deal?
30 year fixed, $100,000 cash down at closing.
How did you add value to the deal?
Turnkey - the home has already gone up about $100,000 in value just by owning it.
What was the outcome?
Long-term wealth building play.
Lessons learned? Challenges?
Challenges? Coming up with over $100,000 on each of my properties to put down. So far I'm making it work, but I realize this is not possible for most.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I own a residential property management company, so I knew the numbers backwards and forwards going into it. Home was rented in 1 hour and has been rented 3 years and counting without interruption.
