All Forum Posts by: Jean Bolger

450k for a place that will gross $2400 is really unlikely to work out for you as a future cash flow proposition, IMO.

This is the problem that comes up so often with house hacking in Denver. You may have to weigh the desire for future financial security against your more immediate interest in living somewhere fun and/or trendy. If you really want the financial advantage, look towards areas that are more transitional and put on your patience cap. 

A lot can happen in  5-10 years. When I bought my first owner occupied duplex I had to make a lot of compromises. First, I was told "No one lives on the west side unless they have to", and also: "Highlands is OK, but just don't buy on the east side of Federal" but that was where I could afford.

Nobody has a crystal ball, but try to look ahead if possible

Welcome, @Samantha Weigand!

That is an excellent way to get started. Many people (me included) have done just that and recommend it

If there is a lease in place it transfers with the sale and you are legally required to honor it. When the lease expires you can have them sign a new one if you like.. You definitely want to get a copy of the current lease from the  seller. You can also request an estoppel letter from the tenant, which is basically having the tenant sign something that affirms that they agree with what is in the lease, so that when you go to collect the rent they won't say "Oh, no, we had a different agreement and were ACTUALLY only paying $800, not $975" or something like that :)

Sounds like she'd be defaulting on the contract if she "put it back on the market". At the very least she'd end up paying back the buyer's costs so far; inspections appraisals, etc in addition to the earnest money. If the buyers got mad it could end up a lot more. They are both being silly, frankly, but people get silly in these situations. Why the heck would the buyers want her used fridge when they can make her buy them a new one? who knows. But it sure sounds like she owes them that fridge - not noticing something in a contract does not invalidate it. If they won't take anything else as a compromise then that's what she needs to give them. 

I don't think of REI as a very "suit" oriented sort of business, but if you feel good wearing one then do it. If you're more comfortable in something a little less formal then do that. For some guys, wearing a suit makes them feel sharp and businesslike - some just feel uncomfortable. Do whatever helps you feel more assured.

So much of that depends on where it is and what's happening in that neighborhood, and the type of property (is it a zoned duplex or a "mother in law unit" - that sort of thing). If you are looking at areas that are currently trendy, it's going to be tougher, for sure. The low downpayment is an important consideration but depending on your financial situation might not be the most important one. The mortgage insurance can be a real killer of an extra expense on those, too -  make sure you've talked with your possible lenders about that so you can factor it into your calculations.

I agree that analyzing at a LOT of properties that are not such great deals will help you to be confident that you recognize that good opportunity when you find it!

As the Denver market  tightens up I think more buyers will want to consider this strategy. Thanks for the detailed post about how you've approached it!

@Lee Oday- Get a pro or plus account and put it up here on the BP marketplace. Decent buy and holds are few and far between in Denver right now. If the numbers are good you should be able to move it, no problem. 

Well, it used to be $475, but yes, you have to pay the fee to get licensed. All new licensees have to hang their license with a managing broker for at least two years. If you want to work independently, you have to then take the managing broker exam (the first  exam only qualifies you as an "associate broker")

I think some of the bigger brokerages may have some situations where they cover costs of schooling and licensing for you (meaning they'll front the money and take it out of your commissions later) but I'm not sure.

That is fantastic! from your first mailing, too- that's extra nice