All Forum Posts by: Kevin Fletcher

@David Hudson Welcome to the discussions! I had a few investments before I got on biggerpockets, and I'm not sure how I ever made money without the information I learned here. Getting involved has really changed my outlook on real estate investing. look forward to seeing you around the site

@Rebecca Rodibaugh Welcome to Biggerpockets! I'm from Denver also. If you need anything, Ill do my best to help

@Andrew Murphy That's really smart that you could take advantage of the good neighbor next door program. My buddy is a fire fighter who was looking in Denver for some thing that he could buy using the program but nothing really came up.

It depends on what you are trying to do with the house. Some people are willing to pay more for a house that they want to be in for a while. Some people use the program just keep the house for the minimum 3 year requirement, then sell to take the equity with them. So, do you plan to stay there long term or more short term? Its hard to know what the house will be worth in 3 years exactly. But, before you start deciding what you will fix, I think its crucial to calculate the ARV (After Repair Value), based on comps in the area. If you take the ARV and you minus the purchase price, future closing costs, holding costs (taxes, insurance), you will be left hopefully with a margin to understand whats left to pay for the rehab. If you pay more than that margin, its likely you will not get as much ROI for every dollar spent above that point.

Also, when trying to choose a contractor, get multiple estimates. And realize that just as you are trying to evaluate them, their skill, professionalism, attention to detail, organization. Many contractors are also paying close attention to you to see where they can take advantage. For example, you may have a 100K allotted for rehab, if you tell them that, of course their gonna find a way to spend that money. So keep your own numbers out of the conversation, and let them come back to you with their numbers.

@Victor Williams

Tenants will never care for a place like you will. The general rule of thumb for rentals is over-engineer the remodel. Which means to spend a little extra make things essentially bullet-proof, so you will have less things to fix when tenants leave. For example,

+Tile wherever you can manage.

+Extra coats polyurethane on wood floors.

+If replacing drywall - use 5/8 thickness.

+Simple hardware in the kitchens and bathrooms - for example faucets and toilets break so you want to try and get more reliable ones.

This will save you a lot more money, time, and energy in the long run to use the more durable option when faced with choices. Its supposed to be passive income, it doesn't end up being very easy or passive if you have tenants calling you every day.

@Rhonda Itomura You have the right idea to go and just observe the first few times. I did the same thing, just networked and try to really pay attention to who is there, and what they are doing. Like other niche's in real estate many investors who buy at auctions have it down to a science. They know what they are doing in the bigger markets/counties but if you become familiar with the process by going to a few, you will better see how to get your foot in the door. Also, if you have already seen the list of houses on the docket, I would suggest you do an estimate on every property before you go just for the exercise of it, so you will know after the auction how close you were in your numbers. Then you can see where you made mistakes and tweak your formula for buying.

Bill Coleman the brokers and agents that I have talked to about this have all said the customary is 6% fee for the seller. But I think there is always room to negoiate. It doesn't hurt to ask for them to take a lower %. Especially if you are willing to work with the same agent in the future. If you can manage to do may deals with a certain agent, some will charge you a flat fee for all the deals yo do together.

When doing your own tile job, first make sure you are using the correct underlayment for the job you are doing. ex. if you are tiling a shower use a mold and moisture resistant cement backerboard or greenboard. Normal sheetrock will deteriorate from the moisture and make you have to do the whole job again sooner than later. And, when doing tile, the finish is very important. make sure you fill all spaces with ample grout so it doesn't crumble later. You can always use a tiling sponge to wipe off the excess after the grooves are filled.

Marian Smith I have Used the same Greyish beige on all of my properties. I like it because it is a more modern and hip version of the bland beige. Its cool and unoffensive to potential buyers. Its saved me some $ on my rentals, because after I switched to this color i have had to re-paint half as much.

Brian Quigley Welcome! yYou have come to the best place to find all the information you need on Real Estate investing. For any questions you have, people here are wiling to help. I am from Denver, and being active on the forums has helped me immensely already. I have also really been trying to work through listening to all of the Podcasts. There are so many tidbits that are essential for you investing strategy. Good Luck and I look forward to seeing you around the forums.

Billie Miller Welcome to the BP community. yeah, From what I hear also its a tough time to get into wholesaling in Denver. But as with anything else in this business, if you can find a niche or unbeaten path that other wholesalers aren't looking at you will probably have more success. I think it will take some long hours hitting the pavement or paying for leads but I'm sure with some persistence you'll find a way.Good luck and Welcome to the area.