All Forum Posts by: Katelin M Barson

Hello everyone!

I am currently searching for rental properties and wanted to get some opinions on rental income.  How much do you look for in monthly rental income?  $500?  $1000?  $1500?  The housing market right now is making this decision very difficult!

I am currently looking into purchasing a condo, but there is a HOA which brings up my monthly payment. I am confident that I could make at least $500 a month on the property but possibly up to $800. (Mortgage would be around $1750 and rental price would be somewhere between $2200 and 2500 a month.)

Is this a good decision?

Thanks!

@Matt M. Thank you for the advice! That is about the range I have been looking in, good to know!  How do I find an off market home?  

@Chris Freeburg Thank you for the advice, thank you! I also replied to your message, so you will be hearing from me twice.  I actually was looking into the owner occupied home cost, and moving/renting my current place.  My problem is that the future plan involves moving at the end of the year and fully renting both places.  An owner occupied rate seems great, but if I have the cash to put down 20% now, why wouldn't I want to do that?  Even if I do end up moving in to the new property for a short time, a bigger down payment would mean my rental income would be higher either way.  Would there be any benefits to an owner occupied loan that I am missing?

@Garrett Jordan Great advice, thank you! A single family home is the best bet right now, but the market is extremely frustrating.  I am starting to stretch the search a bit.  Do you suggest any other areas of town that would be good potential areas to search?

@Peter Pham Thank you for the advice! Yes, we have already had several offers get taken off the table by cash only investors, so hopefully soon.  My concern is how much I am going to be spending vs. rental income. How much is too much to spend on a place to be worth the rental income?  You are definitely right though, Colorado property value will continue to increase either way. 

@Spencer Abeyta  Thank you for the advice! Ideally I would be looking for monthly cashflow, but appreciation wouldn't be a bad thing!  What area do you recommend as far as the midwest goes? I would be hesitant looking there as I have never been to the midwest and it is my first rental income property that I do not live in.  I appreciate the advice about the 1% rule!  That is one of my bigger hesitations right now.  If I can rent a house for $2600, but the house costs $370K, would that be enough of an income to cover costs and still make a profit?

Hello everyone!

I've read through quite a few posts and gotten some fairly good advice, so now I'm looking for some situation-specific advice. I am in my 20s and wanting to get in to the real estate investing market. However, it is quite difficult to get good advice elsewhere!

I currently live in the Denver area, I own a home, and rent to roommates, which is awesome for living expenses. I am looking to purchase an investment property in the very near future and do have a substantial amount to put down for the necessary 20%. I have primarily been looking for single family houses that are $350-$385K in the Westminster/Arvada area. The problem I am running in to is that a $375K house would be great, but every house is going for at least $25K over asking price, if not up to $50K over asking price! This definitely does not follow the 1% rule. It doesn't seem worth wile to spend $400K on a property, even with 20% down, especially since most places going for this need work or are quite small.

I have heard to steer clear of the Aurora area, but that seems to be the only place to afford a property now.

Does anyone have advice as far as price point vs. rental income goes? Is it worth it to get a property in this market? Should I be looking for a condo/townhome instead of a single family home? If my rent to mortgage ratio is something like $1700 to $2500, is this worth it? Or am I getting into dangerous territory?

Ideally I would like to purchase in the Denver area, since I live here, but am open to suggestions. I have heard Colorado Springs is a good market for investing, but I'm not sure yet.

Bottom line is that I know real estate investing is worth it, but I'm not sure the parameters. Especially with a ridiculously competitive market that every property gets 20 offers in the first day!

Thank you!

Katelin

Hello everyone!

I've read through quite a few posts and gotten some fairly good advice, so now I'm looking for some situation-specific advice.  I am in my 20s and wanting to get in to the real estate investing market.  However, it is quite difficult to get good advice elsewhere!  

I currently live in the Denver area, I own a home, and rent to roommates, which is awesome for living expenses.  I am looking to purchase an investment property in the very near future and do have a substantial amount to put down for the necessary 20%.  I have primarily been looking for single family houses that are $350-$385K in the Westminster/Arvada area.  The problem I am running in to is that a $375K house would be great, but every house is going for at least $25K over asking price, if not up to $50K over asking price!  This definitely does not follow the 1% rule.  It doesn't seem worth wile to spend $400K on a property, even with 20% down, especially since most places going for this need work or are quite small.

Does anyone have advice as far as price point vs. rental income goes?  Is it worth it to get a property in this market?  Should I be looking for a condo/townhome instead of a single family home?   If my rent to mortgage ratio is something like $1700 to $2500, is this worth it?  Or am I getting into dangerous territory?

Ideally I would like to purchase in the Denver area, since I live here, but am open to suggestions.  I have heard Colorado Springs is a good market for investing, but I'm not sure yet.

Bottom line is that I know real estate investing is worth it, but I'm not sure the parameters.  Especially with a ridiculously competitive market that every property gets 20 offers in the first day! 

Thank you!

Katelin