All Forum Posts by: James Carlson

Uh, folks, we're missing the obvious renovation ... in-bedroom sauna. Super expensive, total space waster, rarely used, and difficult to maintain. No-brainer!

I kid, but I seriously have a friend who installed a tiny little sauna in her 1br condo and loved it. Ridiculous!

@Scott P.

Have you tried any wholesalers that work in the Colorado Springs area? I saw someone mentioned @Brent Bowers and @Darren Smith the other day. You might reach out to them. 

@Zack Haberle

Sounds like you've got a heck of a start! That's awesome to hear. There are some great resources on BP, especially for those investors in Denver, Colorado Springs and elsewhere along the Front Range. The Colorado BP contingent is strong. 

Those that don't know Denver still stimatize Aurora, but it's got some pockets that can be good for investment. I had investor clients who did a rent-by-the-room model in Aurora out by the Anschutz medical campus and are doing well with that. Where are your rentals in Aurora? Straight forward long-term rentals? 

We'll see you around the forums. Cheers!

@Clark Zuker

Matt's advice is sound. I know great Denver agents who work for no-name brokerages, and I've worked across from some awful agents in Denver who worked for Sotheby's or KW Luxury. It's really about the agent. 

I'm sure this ain't your first rodeo, but in case it is, I tell people in my homebuyers class to ask any potential agent the following:

Am I working with you exclusively? Or will I work with others on your team?
As Matt said, you often interview someone but end up working with someone else.

How many deals do you average a year?
I better see at least 12, and preferably more. If they're averaging at least a deal a month, they're not going to be as in-tune with the market and not as polished when it comes time to negotiate price and inspection items.

What's your communication style? 
They're obviously going to answer in the positive, but maybe gauge how they've communicated with you so far as a barometer of how they'll communicate with you in the future.

Do you own investment property yourself?
I'm leery of buying an investment property with an agent who hasn't done it themself. 

And good luck! If you've got your hands on a quadplex that makes sense in Denver, then good for you. Cheers!

@Greg Pond

Throwing out the obvious non-sexy repairs -- roof, sewer, etc. -- that nonetheless matter a lot, I'd say there are four big renovations that bring a nice return on investment for properties in Denver and Colorado Springs.

1. A moderate kitchen update. Nothing crazy. Granite countertops, stainless steel appliances, more modern-looking cabinetry. 
2. A moderate bathroom update. Again, don't go luxury with this. Just bring it up to the contemporary style.
3. Finished basement. This might be more true for resale value. You can finish a basement for $25/sf. As an example, I just looked at some homes in a newer development on the east side of Colorado Springs. Most had 750sf basements, some finished, some unfinished. The finished basement homes seemed to get about $30k more. If you finished it for $20k (roughly 750sf at $25/sf), then that's a $10k return.
4. Outdoor space. Again, don't go crazy. But a xeriscaped yard with a seating area is a huge bonus in Colorado where the weather is amazing.

I'm interested to hear what others think. 

@John Mayer

Dude, you two are killing it! So happy to see that. 

@Greg Pond

I was kind of surprised by that as well, but the truth of the matter is that I put little stock in these lists. You've got to continually change them up to try to bring in new readers, so they mean virtually nothing. (How many years in a row can you say the Highlands and Wash Park are the best neighborhoods in Denver before people tell you to stop already?) And yet, they are still fun to read. 

@Graham Watts

Yeah, RiNo (or really Five Points/Curtis Park) is one of the most dynamic areas of Denver. Great street art. Some solid restaurants. (Los Chingones is great, as is Barcelona ... just don't tell anyone it's a chain.) 

I also like the area because the homes there are zoned to allow for new construction of accessory dwelling units (ADUs). And an ADU is one of the few ways you can legally Airbnb or short-term rent a place full time in Denver. (They make a fine long-term rental as well, of course.)

@Jeremy Babin

Not to pile on, but again in Colorado Springs cash-flowing a property is tough (unless you're house-hacking with a rent-by-the-room model, and even that is pretty tough model to scale.) BRRRing isn't any easier. Wholesale "deals" don't seem to be much of a deal at all, and so finding homes sufficiently under market to be able to add value are hard. 

If you are dedicated, you can find an off-market deal but you've got to be diligent and persistent. People do it, and you can too if you want it.  

Reiterating again what others have said, I say take some action over nothing. We bought our first place five years ago in Denver, at a time when everyone was saying the market would correct soon (hmm, how long have we heard that?). We didn't cash flow initially, but rents have caught up and we're doing fine. Plus, it's appreciated nearly $100k in that time. As they say, don't wait to buy real estate, buy real estate and wait. 

Good luck with everything. Cheers!

@Phil Wells As some others have already noted, this is a trend that is already in the works, pre-Covid. Millennials especially are starting to move to the suburbs in larger numbers. (See here and more locally to our market, here.)

We're seeing this with our clients in Denver and Colorado Springs. Heck, though my wife Erin and I ride the line between Gen X and Millennial, we are part of this trend it appears. Have always been Denver and city snobs but recently moved to a house in less-urban Colorado Springs (though still pretty close to downtown). Why? Well, supposedly to get a house ready for a house-hack/rental, but then we found we like the yard (as does our dog) and we like the space. 

So yes, we will likely continue to see that trend continue, and Covid will be just one small factor in that.