All Forum Posts by: Teri Feeney Styers

@Mike Romano homes that were purchased through HUD (repos) are exempt from the rule.

@Franklyn Douglas III I have invested in tax liens in the past. Here is what is good: in Colorado they pay 9 points above the current US Federal Discount Rate (which is 5.5% right now) - so that would be an interest rate of 14%+. Here is what is bad: in most cases, when people realize their property has been sold in a tax lien sale they redeem (pay their property taxes) - so you may only earn that rate for a matter of a few months. Here is what is good: the county handles all the necessary paperwork and sends you a check. They also give you the option to buy the lien for subsequent years so that you stay in first priority (the whole process takes 3 years before the property is forfieted). Here is what is bad: only about 1% of properties actually end up in the hands of the lienholder. 99% redeem the property at some point. 

@Alan Mills First of all, are you sure you are saving money by not using an experienced attorney? Maybe not... But since that is the choice you have made: I don't know what it is like in Pueblo; but in Mesa County where I live there is a person on staff that walks you through the process and the necessary paperwork that needs to be filed (they don't fill it out for you - just provide the steps). You should be able to get a judgement (writ of restitution) for your losses. Then you have to file that judgement and tap their bank accounts or garnish their wages. And you have to refile on a regular basis. And you absolutely should do that for the past rents and any property damage (and lost rent while you make repairs). However, being worried about finding a qualified tenant in the winter certainly wouldn't be an issue here... the demand for rentals is so high. No so in Pueblo? And here is a suggestion: make that first lease expire at the end of May (either 2024 less than a year or 2025 more than a year). You don't want a lease that repeatedly expires in November. 

@K S. It is the second toilet that adds the value - even a powder room. A "luxury" bathroom might translate to higher STR rental amounts - but that has never been a high criteria for me when seeking lodging. However, a double sink for LTR maybe...

@K S. I have done comps on 2 bed vs. 3 bed multiple times in my area. The third bedroom adds $25k to value across all neighborhoods. Likewise a second bathroom. You should always look at multiple exit or investment strategies. Can the numbers work in LTR as well as STR? If not - I would be hesitant. What are the rents on 1 bedroom vs. 2 (real) bedrooms? What are the sales? A Realtor or property manager should be able to assist you with these comps.

@Alazar Wubet you could be the "Go Fer" for your subs. Make the quick runs to Lowes, Lumber yard, etc. Why pay them if you are just sitting around? Let them concentrate on the skilled stuff. 

@Ethan Fowler I see so many young couples do what your fiance is leaning towards. They buy the expensive "cute & perfect" first home, burying themselves in a mortgage that will never make this a good rental property down the road - and trapping themselves from being able to afford to invest. I also would approach home ownership as a non-married couple with a little caution. You need a list of must haves - she doesn't have to live in a dump - and you don't have to get stuck with investing in a property that will never be a good investment. You guys work this out and you are on your way to a successful partnership. 

Have an engineer assess the foundation and write you a report. Around here that costs $150-$300. An engineer is neutral - a foundation repair company is not. You can find an engineer by reaching out to Realtors or draftsmen and architects. 

@AJ Stanis

You have the right to inspect your units with a proper amount of notice - why not do that every 6 months? It would be a lot cheaper... 

@Bobby Paquette if an STR brings you the same net as an LTR why would you hassle with it? WAY more work...