All Forum Posts by: Jim Victor

Finding cash flow in Denver is going to be very hard without making a massive down payment or house hacking, which would be GREAT if you can do that effectively.  I think the trick to Denver for most people is to buy something you can afford, grow your W-2 income over time, and turn your primaries into rentals whenever it makes sense to do that, rinse and repeat until death.  When you get appreciation here it tends to be appreciation on steroids, so big jumps in net worth to start growing your portfolio.  Never sell anything, just play the long game.  Get rich slow.

Hold on to this gem, and that loan.  Keep turning your primaries into rentals when the timing is right, but don't ever sell any of them unless you absolutely have to.  You will thank all of the long-term Denver investors for this advice later.

Some years it is passive, some years it is a soul sucking grind, even with PM in place.  I was lucky to have the perfect tenant in place for seven-years, coupled with minimal maintenance over that stretch.  Then came the next five-years with added properties, not so reliable tenants, and natural disasters, and a few tenant caused disasters.  I've learned that it is a blessing when you have a long stretch with no issues, and that this too shall pass when problems arise.  

Communication with your PM and staying on top of maintenance will save you a lot of headaches and keep your investments more passive.  

Ooh, I can't not reply to this topic.  An offensive lowball offer I received on a property I listed for sale in suburban Denver back in 2007 is what turned me into a real estate investor.  My realtor (and best friend) still says it was the most offensive conversation he has ever had with another realtor.  Ha!  And 16-years later I still own that property, and it has been fantastic as a rental.  Thanks lowball offeror!  You changed my life! 

Ultimately you should go with whatever helps you sleep at night, but...... I think down the road people will regret paying off the low rate debt they've got now.  That will be a life lesson.  I've made this mistake before myself.  Keep your cheap debt.  

Once you go above one rental property you definitely need to break your rentals out into a separate bank account from the bank account you use to manage your life.  It makes things much easier.  How you should break things out most efficiently from there will become more apparent as you build out your portfolio.  I use one bank account and an Excel workbook to manage rentals, but I live in spreadsheets every day, and that might not be comfortable for most people.  

Go to college, especially if you are going to come out of it without debt. It is a fun experience, you will make great lifelong friendships, and it sounds like you already know you want REI to be a big part of your future. Get your degree in something that will complement your REI goals, with high income potential to support those goals, and to fall back on if REI becomes less attractive in the future (doubtful). I think it is great that you already realize how real estate can turbo charge your wealth building potential, but you will be better served early on if you have a profession to fund the early stages of that journey.

I would absolutely charge them.  You have a damage deposit and they have damaged your property.

In 2006 I moved out of my first condo as I had purchased a new home for my fiance and I, and I never even considered self management.  I worked long hours, and property management isn't my thing, but passive income sounded great.  I then turned that house over to a PM several years later when we moved on to the next one, so now both properties are being managed by somebody I trust.  I have been luckier than most, as I have had a total of 2-months of vacancy on the first property, and none on the second.  I've had only a few issues with tenants or maintenance issues over the years.  There were a couple of times I wondered if I really needed a PM since things were flowing relatively smoothly, and then an issue would come up...  The tenant who broke their lease 45-days after renewal, the frozen pipes during a historic freeze this past year, a couple of hot water heaters and furnaces over the years...  I don't have those skills, I don't have the patience to deal with those situations.  My PM is worth every penny!  Ha!

Bigger Pockets Real Estate podcast episode 639 from July 24th is a great overview.  Guest is Matt Argersinger from The Motley Fool.