All Forum Posts by: Nathan Duffy

@muhammad ahmad Given your budget of $350,000 and the desire to live at the property, focusing on an area near Saint Louis University is ideal. Consider searching for multifamily unit or a "four-plex" which consists of four units. This type of property allows you to use part of the building as your home and rent out the other units, often for stable monthly rental income, this strategy is known as house-hacking! If the budget permits, invest in newer units which require less maintenance and which can also generate higher rental income. In addition, you should research the local market dynamics so you can determine the potential for resale value or transitioning the property into a long-term investment option when you complete your Master’s program. If you need help with any of this shoot me a DM!

@Tiamo Wright Regarding the membership, I haven't come across that option. I would highly recommend doing research and seeking out referrals first before making any commitments. Even if the cost of the subscription may seem like a small amount, it's always important to have an understanding of the level of service and repair they provide.

I've had a home warranty on my first property and it saved me a few times. BUT, dealing with getting the claim paid out was a nightmare. If you are willing to badger them enough and understand the fine print you will get your money, it's just not easy unfortunately.

@Nicholas Creahan In Colorado, it is legal to rent out a garage conversion as a short-term rental, but there may be local regulations that apply. Make sure to research the specific requirements and regulations in your area, as they can vary by city or county. Additionally, as I mentioned earlier, it's important to consult with an experienced real estate lender to determine if financing options like FHA or VA loans are available for your specific situation. They can give you guidance on the requirements for these loans and help you navigate any potential roadblocks. Best of luck with your triplex and garage conversion! I'll DM you a few recommendations that I have.

Hi @Grant White,

Parker is an attractive area to house hack given its close proximity to Denver yet more affordable cost of housing than the city itself. It is located east of Denverite areas, but as long as your property is in a desirable and safe area, there is potential to attract tenants who work in the city and appreciate the more affordable rent. 

We have had plenty of clients with no issues renting there! Would love to connect and help you further.

@Meredith Dauria First action step I took was to network with likeminded individuals and mentors! Sounds like you are on the right track with you brother. It's crucial to gain insight into the local market from people who have been investing already!

@Dionysius Feaster You have stumbled upon a strategy that we have come to know as Return on Equity or (ROE)! As a portfolio advisor I have explained this concept to many clients and it involves exactly what you are doing. Tapping into equity you've created (or the market's created) into leveraging up and acquiring more real estate. This is how you accelerate towards your goals! As a rule of thumb it's smart to keep at least 20% of equity in the old home as you pull out to purchase the next. 

@Matt Haselwander put simply, anything will work! And I know that's not the answer you wanted to hear but most people will give different advice. The main thing you need to focus on is your situation and what strategy fits in with your life the best. Where do you land on the profitability/comfort spectrum? I was in the same position when I was looking to get my first place with analysis paralysis. There are lots of factors at play here. I'd say number one should be your top priority in the present and go from there! Find out what fits your lifestyle and what opportunities present themselves as you continue to network. Best of luck! 

@Jessica Ewanic, congratulations on taking the leap into real estate investing! To answer your questions:

1. Getting your real estate license can provide valuable knowledge about the industry, but it's not essential for investing. If your main goal is house-hacking and multifamily properties, diving right into finding a deal might be more beneficial. However, having a license can offer insights and networking opportunities.
2. Building a solid team is crucial. Look for a real estate agent specializing in investment properties, a reliable contractor, a property manager, and potentially a real estate attorney or accountant. Attend local real estate meetups, join investor groups, or connect with other investors to find recommendations for team members.
3. Finding deals beyond popular platforms like Zillow and Trulia requires creativity. Network with local investors, attend real estate auctions, contact wholesalers, drive for dollars in target neighborhoods, and explore online platforms specifically catering to multifamily properties like LoopNet or CoStar. It's ambitious, but with diligence, you can find 4-20+ unit deals.

You are doing all the right things! My team specializes in these types of transactions as well so DM me if you want me to send you some case studies we have on this topic!

@Ethan, when it comes to house hacking or fix and flip, $20,000 might be a bit tight for either strategy. But it all really depends on how creative you can be. Going out of state can be tough at first if you don’t have an established network you can trust that knows the market you’ll be investing in. I would say the first step is to find that team!

@Chase Puckett, I think it’s a matter of discussing the pros and cons of your investment strategies options, here are some options to consider:

1. Long-term rentals: Switching to long-term rentals provides stability and a consistent income stream. While the returns may not be as high as with STRs, it will be the least time consuming for you to manage.
2. Medium-term rentals: As you mentioned, medium-term rentals have been performing well for you. You can continue targeting tenants seeking stays of a few weeks to several months. This offers a balance between the flexibility of STRs and the stability of long-term rentals.Try looking into corporate housing as an option for finding tenants.

Each option has its pros and cons, so evaluate your specific goals, market demand, and local regulations to determine the best approach for your investment here in Denver. DM me if you need any advice on the strategies listed above.