All Forum Posts by: Robert Herrera

@Ralph R. Did you sell your property?

@Mark Caudill Hello all! I love the Pueblo Market. I own a total of 34 properties here in Colorado. 30 of them are in Pueblo, 1 in Fowler, 1 in Colorado Springs, and 2 in Denver. I’m will to answer questions and team up on deals. I’m generally a buy and hold investor. I’m also looking for owner carry deals or subject-to’s to take over. This is still a very good market to play in, and I close on 4 properties this year alone

@Alex Ko sounds like your in a very good position to get started.

I always look at 3 things to determine if a deal is worth looking at further.

1) How Much Down (all cash or financing with X amount down)

2)How much is your monthly payment including taxes and Insurance?

3) How Much can you reasonably expect in rent?

Rent - Monthly payment = Base Cashflow

Base Cashflow % Money down = Basic Cash on Cash Returns

If those number make sense, for what I’m shooting for, then I would examine the deal further.

Always shoot to meet or beat the 1% rule of rental income.

@Jordan Brooks I would watch AirBnB Automated I n YouTube. It’s a great resource for what you’re looking at doing. He does this on a massive scale

@Erin Linehan Pueblo prices have gone through the roof since back then. I’ve seen some of my properties double in value. It’s till a good market to get started in.

Are you looking to invest in rental houses, or do you want to gamble on fix and flips?

@Kelli Standekar from the outset, the deal looks a little rough, from a cashflow point of view. It certainly doesn’t come close to the 1% rule. Land is hard to get financing through a bank, and most want 50% down for a land deal. You would need to generate $1,450 per month on rent just on the land purchase, to be worth investing in. Adding 2 tiny homes would bring in $3,000 per month (if that’s a guaranteed rental amount and not just wishful thinking.) If you purchased and installed the 2 for $155k or less, you would meet or beat the 1% rule.

The problem will be removing the current tenants, and also their mobile homes. Usually those things cost too much to move or are too old to legally move. You may be left with the problem to deal with yourself.

You could raise lot rents, and when they move because they can’t afford it, you will own the mobiles they leave behind. You can then sell those on payments, and make the new owners responsible for repairs/maintenance and utilities. You would generate more cashflow, and more from the lot rent.

Either way, it looks like a lot of cash upfront, and a lot of work to generate good enough cashflow for returns.

How do you see the financing and capital you will need to pull out of your pocket, to make this work?

@Joshua Levine I’m in the Southern Colorado Market. Mostly use online tools that the prospecting tenant can pay for themselves and the company will report it to me. Background checks and credit. Also work history and living history. Always call and verify everything.

@Fritz Doublas Yes I’m always buying out there. Message me

@Lauren H. How much? What are the rents, how many bedrooms/bath in each unit

@Jeremy Petersen I would look at pueblo as well. I’m heavily invested there. Also my cousin owns the dispensary out there in your area. How are the rents around there