All Forum Posts by: Travis Sperr

Stigmatized property definitions and requirements are different in every state. I don't know that is applies to rental property as it does the resell of the property. Likely no recourse.

@Brit Foshee  The IRS test is pretty straight forward, best to ask your CPA - but they will want very clear records on the time you spent on your real estate business. The IRS.gov site is a great resource for all of the factors in the real estate professional test.

Go to the meeting, great opportunity to meet people and get an overview of the business- leave your wallet at home, not in your car but at home. Bring a $20 bill to eat lunch.

Good Luck!

@Michael Olson  I actually host the meeting at the Ritz down town. We meet on the 2nd Thursday of each month at 6 pm, downstairs in the Elbo room. We do get a wide range of attendees but I can guarantee it wont be a waste of your time, if it is you can buy me a beer. 

@Aaron Moore @Louis Radosevich thank you for the kind reviews.

@Darren Smith@Christopher Holt Would be happy to have you at our next meeting. 

@Mike Thomas  re: $300k houses

You might be surprised that $300k houses rent, houses, condos and town homes rent in the million dollar price points too.  All values rent - clearly some are better investments than others.

If you are looking for more information on the demand I would connect with a property management company in your area.

@Michael B.  Probably goes against every thing you are asking, but borrowing from credit cards to buy rentals feels like a slippery slope to me. If you can buy 30-40k houses in your area, why not just buy with the money you have and bank financing? I would hate to see you have 4 houses on credit cards not be able to refi them and the interest rates in the 15-25% range.

You may also want to just double check that your CC doesn't charge more for cash advance vs purchase.

I like your creativity, just need to be careful.

@Tiffany Long in some cases you can get approval up to 50% DTI - are you including 75% of the rent of the subject property when calculating DTI? in some cases you can use the rent on the subject property.

Another option is a local back who may be more interested in the debt coverage on the subject rather than the DTI - down side is shorter term loans, little higher rate.

@John Pruner  A lot of factors to consider to give a great answer- 

30-45 min of downtown is virtually all of the metroplex - depending on time of day.

Buying for cashflow - is likely going to be on the lower end of the market $200k or less - more for multiunit. Not knowing their experience, risk tolerance and how hands on they want to be - all factors that are included in cashflow purchases as you are aware.

I would be looking in places like Thornton, South West Denver, parts of Westminster, Aurora, Park Hill.

Great deals are certainly not as plentiful as before, but patience pays well right now,

@John Pruner I do still see decent cash flow deals in our Denver market, the prices are up but so are the rents. The idea of buying a property for under $100k is pretty difficult as you know, unless time is spent for an off market deal. 

I would be careful suggesting out of town/state investing if that is even slightly out of their comfort zone as you will likely be the contact for advice when things are not going well. Although if you have the contacts and proven systems for out of state it is worth a conversation.

I don't personally look outside of the Denver metro, but i hear there are deals to be had in Greeley.

How much in repairs to hit $410k? 

A landlord will still want to get a good price on it, likely better than fair market - unless there is an opportunity for a large value increase via repairing the property.

Without intimately knowing your market - $320k for a proper that rents for $1,700 a month is not a deal I would do.

Further - if you are paying fair market, there isn't any room to get paid as the wholesaler, unless limited repairs offer a large value increase.