New Investors, Plan to buy in Denver w/ FHA, exploring BRRRR

[Matt Glebus]

Hi all,

My business partner, Max, and I are eager to begin our real estate investment journey. We are 25 year olds that became friends at Hamilton College and now have accumulated funds to where we are looking to buy 1-3 properties in the next 5 or so months to kick off and scale our investments together. 

We have head our heads buried in David Greene's BRRRR and Long Distance REI books and wanted to reach out to the community here to connect. We are now in contact with several agents in Denver on potential FHA loan properties, and have a calculator/model and are analyzing deals to ensure they make sense when Max were to move out later this year.

End Goal:

Cash flow and retire from our day jobs

Personal:

Matt - Moving to London in a week for work (Reinsurance)

Max - Solutions Engineer - WFH, Willing to relocate to Denver Area

Plan:

1) House Hack using FHA in Denver (~$500k duplex? or single family)

- close monitoring of initial investment, minimal money down

2) BRRRR in Denver area if feasible, considering out of state
- Focus right now is getting pre-approved for FHA financed property and close on an attractive deal. We then want to move very quickly on assessing properties for second investment and feel as though BRRRR would be the best value in building our cash flowing portfolio asap.

Next Questions/Steps:

- We understand BRRRR will be considerably more work than a turnkey cash flow investment and are prepared for this. That said, we have no experience - what tips / considerations do you view as most important in our first BRRRR? Would you recommend looking at a different market (in CO or elsewhere) that may be less 'hot' and expensive?

- @Denver Area Investors, we are starting to plan our team (agents, lender, property manager, contractor) - would appreciate input on those that have built one there

- Neighborhood specific data/feedback?

Please feel free to message me directly if you are open to connect with us. We are extremely excited to progress forward, and big thanks to BiggerPockets for getting us this far already.

Matt

[Catie Lawrence]

@Matt Glebus so exciting!

Having been in this market as a flipper/rehabber for the past several years, here’s some of my advice/lessons learned....

1. Run your numbers and always account for mishaps - making sure you have the funds for the unexpected. There’s always something!

2. Do your research on comps/what other properties are going for/how they’ve been rehabbed, etc. We’ve seen some shotty work - so ask lots of questions & do things right the first time.

3. Check out Broomfield, Englewood, Lakewood, Arvada - great suburbs with light rails close by.

4. Keep your books straight from day 1 - saving receipts, opening up new accounts per property, getting a business cc to keep costs separate. This is not a sexy topic - but is soooooo important! Take a listen to Millennial Real Estate Investor podcast episode 102 - GOLD!!

5. Consider creating an LLC - if you've not already

Ok those are pretty high level - sounds like you are on the right path. So exciting & best of luck man!!!