Starting out in DENVER

[Dave Hecker]

Hello everyone -

After a couple of years reading and learning about RE investing, my wife and I have finally moved to Denver and I can get started!

I am hoping to find/invest in duplex/triplexes in the Denver area, with the intention of buying and holding. I have been watching the market for a while, and am getting a good feel for the area.

We are also looking for a home to live in but since we need at least 3-bedrooms (pref 4) and are picky about neighborhoods/schools, I can't seem to find a multiple-family home in the areas we want to live in for a reasonable price. So, we're considering buying a SFH just for ourselves, or getting a duplex that is nice but doesn't exactly cashflow - at least it will generate a bit of revenue which I guess is better than nothing.

After scouring the MLS listings and looking at quite a few places, I want to start making local contacts in the area for general networking purposes. And I'd love to get on the investors list for some local birddoggers/wholesalers!

Anyone in Denver want to meet a motivated, highly capitalized investor who's looking for deals? Here I am!

thanks to everyone for all the great info on this forum. I hope to contribute myself once I learn enough to do so!

thanks, Dave

[Jon Holdman]

A rental that costs $380K and brings in $2600 a month in gross rents is a horrible investment. But that's typical for those areas. I don't know why anyone would buy such a property for an investment, but it's clearly not to make any money. Perhaps as a speculative bet on future appreciation.

Lakewood and Edgewater are better than those areas, but still awful for finding rentals. Once in a while I run across something that gets on the edge of being "not awful", but that's about as good as it gets.

For a unit that rents for $600 a month, the most I'd pay, even with self management, would be around $40K. That's just about impossible anywhere here. If you get up in the $1000-1100 rent range, you can find SFRs that do work fairly well. Not on the west side, though. You need to be all in on a property like that for $80-90K.

I see lots of fourplexes in Lakewood/Edgewater/Wheat Ridge advertised in the $300-400K range. Typically 1/1's, sometimes 2/1's. Those are going to rent for $500-600 for the 1/1's, $600-700 for the 2/1s. Awful, just awful.