Getting Started In Denver Area

[Ty Wright]

If you were moving to the Denver area with $40,000 to invest and you are trying to start off with real estate investing, what/how would you do it?

[Ben Rhodin]

Hi @Ty Wright ! 

First of all welcome, and congratulations on starting your investing journey! With that sum, and moving to the Denver area I would definitely suggest you House Hack for your first property here. It will allow you more opportunities in the long run, and keep more money in your pocket. With that amount of cash, you will be able to get into a nice house hack ( based upon qualifying for a mortgage of course) since you will be utilizing a low down payment loan and you should still be able to have some leftover for reserves, and making certain repairs if necessary. Then after a year you move out, rent your room, and repeat the process.

House Hacking will provide you the opportunity to get into your first property and start learning the ropes with less risk than a traditional rental. What you need to figure out is what you want out of the house hack, however. Do you want to completely cover your living expense, live for free, and potentially even cash flow above it? In that case, you will most likely do rent by the room situation and take the smallest out of the areas for yourself. Or do you want to live comfortably and only cover maybe most of your living expenses? Then you might look into a duplex, or find a single family with a separate living space, or one that can easily be converted.

It's all going to depend on your priorities, are you looking to sacrifice some comfort in order to jumpstart your investing, or are you OK taking it slower, and living comfortably while you do it? Either way, I would always suggest house hacks as first investments. If you want to discuss more, I would love to connect and chat more about your goals here in Denver!