Opinions for determined newbies in Denver area soon to retire

[Patricia Miller]

So, assuming this is a question for the "Fire Round" on the BP podcasts - is anyone willing to offer an opinion about or strategy for the following idea? Condos or apartments? Townhouses or SFRs? etc., etc.

Goal: develop modest cash flow ($3,000 - $8,000 per month) while building a buy-and-hold portfolio over a period of 5 years in the Denver and surrounding area.

Initial investment: $80,000 cash immediately; additional $180,000 within 6 months (from sale of home), need to live somewhere as part of the plan after the sale of the home.

Investor experience: 0

Investor strengths: Willing to work, research, organize, engage in and manage light-renovations (or build?); super-high level of motivation; experience with 2 new home builds (with contractor) and a life-time of home renovations 

Investor weaknesses: not willing to deal with difficult tenants; leery of investing in lower rent/unsafe areas; moderate risk tolerance; probably more passive involvement after 5 or more years

I'm doing lots of research now, listening to podcasts all day long, reading, and pouring through Zillow, MLS etc to see what is what. Currently realize that deal-finding is critical...

Thanks!

[Dan Mackin]

Difficult tenants can come in any level of investment. A lot of it just comes down to screening them as much as possible. 

What it seems like you may want to do is research house hacking. If your goal is to do this over a 5 year period you can build a decent portfolio over that time. Some you would live in and then move while others you will just buy as straight investments. One big question here is how comfortable are you with dealing with HOAs? That is a big holdup for lots of people. I will say good on you for starting your research now.