Colorado Investors, where are you investing?

Question

Hello BP,

Question for the Colorado investors, where and how (strategy) are you investing along the front range. What are you goals for 2021?

Andy Horn · Answer

Hey Mark! I've been considering putting together a similar campaign for Colorado Springs and would love to hear how yours went and if you've received any feedback yet. Would love to connect!

Daniel Haberkost · Answer

@Mathew Fuller it sounds like you work a traditional W2?

If that’s the case, turning your current house hack into a rental and buying another would be a very doable strategy while working a full time job.

Dan

Daniel Haberkost · Answer

Great question,

I'm in several markets here in Colorado:

1.) Pueblo West: Here I'm buying/selling land and building houses on some of the parcels where it makes sense. This has been a fantastic market but the opportunity there right now will not last forever. A year ago building houses was my preferred strategy, then land tripled overnight. Now I'm buying land at the old prices and selling at the new while doing a few houses as well.

2.) Colorado City: A little further down the Front Range and you hit Colorado City - this has been an awesome market for buying land cheaply and selling on notes. Just in the last year since I've been down there, a lot of construction has started to happen so I'm looking into doing a spec house down there myself as I have a parcel with utilities on the golf course that I bought for next to nothing.

3.) Walsenburg: I'm just getting into Walsenburg now - the city itself is gross but as you start to go west the views of the Spanish Peaks are amazing and there is A LOT of land out there that can be bought for next to nothing so I'm looking to duplicate what I'm doing in CO City here as well. Specifically, there are a few sections where all of the preliminary work is done and the land has been subdivided with all utilities in place which is my favorite sort of land to go after.

4.) Colorado Springs: I live up here and am working on buying another house via house hacking. I have several rentals here and I'm very bullish, in the long term, on The Springs. With my primary, residence the rent by the room strategy has been extremely profitable (and easy) for years so I'm simply duplicating that.

5.) Hartsel/South Park: This is an awesome market for land and I'm looking into going after larger parcels here but undecided as I can only do so much!

What are you working on?

Dan

Mark Gutierrez · Answer

I am in the Colorado Springs market. Currently house hack my primary and have 1 rental. Looking to stay within the springs. I have been working on direct mail marketing campaign. I will have letters to send out next week, so hopefully all goes well to see some results, sending out about 500 letters!

Chris Freeburg · Answer

@Mathew Fuller I love the question.

I invest where I live in NW Denver. It's the beauty of house hacking. Low downpayment, great interest rate, live in a cool neighborhood, all while having my tenants pay my mortgage and building a real estate investment portfolio.

Craig England · Answer

I am currently purchasing my second househack and renting our current househack in Colorado Springs.  We also have some properties in southeast Co in the Arkansas valley.  Very good cash flow in that area but much harder to find reliable team members and much less appreciation.  Springs has been a good place for us on our flips.

Jacob Mueller · Answer

I completely agree with @Daniel Haberkost buying a new house hack is the way to go and turning the current into a rental. Best ROI is with owner occupied properties. I would also look for houses in your area you can add value by converting a basement or a garage into another unit. Typically the best bang for your buck is improving property you already own.

Mathew Fuller · Answer

@Daniel Haberkost

Mathew Fuller · Answer

Wow, sounds awesome man. I am not very familiar with the side of RE investing with buying land and building houses, glad to hear it's been doing well for you.

I live in Fort Collins, I bought a house hack in late 2019, and my girlfriend just rented out her home mid last year in LaSalle. We just did a cash out refi and have been sitting on other funds that we want to invest in 2021, I am a bit overwhelmed at the opportunities out there and trying to find the best way to deploy the funds. Do I pay down more principal on my current house hack, turn it into a rental, and buy another house hack?  Do I do 20-25% down on a property in Greeley or CO Springs? Do I try to BRRRR / buy properties out of state. Lots of analysis running through my mind. Colorado is a great place, but housing around my area is pretty nuts and the rent's don't justify the price, that is what I am struggling a bit with, house hacking works well in an up market, but what about a down market? There are not alot of multi family properties that I see come up in Fort Collins either.

Anyways we're definitely investing this year, I am curious what others are doing and finding success in.

Colorado Investors, where are you investing?

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