Northern Colorado Multi-Family Assistance

[Matt Pestridge]

I have been listening to the bigger pockets pod for about 2 years now. Without going into too many of the details, I am going through a divorce and the soon to be ex was not interested in real estate investing like I am and now I have the opportunity to get the real estate investing ball rolling. The place I plan to occupy will need to have 2 beds because I will have my son with me 1/2 time. I am looking to buy and hold in order to start a portfolio with multiple doors over the next 10 years or so. This will be my second investment property of hopefully many. 

My current situation is this:

We are selling our marital home and I should net about $15K-$20k for a down payment on a place. We have an out of country rental property that we will be liquidating in the next 3-4 months which will net around $30K but I won't have access to those funds and am looking to get into a place soon to avoid having to pay rent. I am looking for a duplex, tri or quad that I will owner occupy. Worst case scenario I could purchase a condo as a buy and hold, though I would like to start with multiple doors if possible. I am already talking with a couple of local lenders who told me that there are some great FHA loans currently available for owner occupied multifamily. The market I am in around the Fort Collins CO area has a very limited inventory and I am having a hard time finding something here through the MLS. What I have seen on the MLS sells extremely quickly. I am a facilities technician for a small real estate management company and possess most of the skills that would be needed to rehab a place. Though part of being in that industry means that I am not a very high income earner.

An option that may or may not come into play is a friend I have who already owner occupies a duplex in the area who has a lot of liquidity and might go in on a deal with me, though they are hoping for a triplex or more doors if they want to partner up.

Here is a list of the things I am hoping to get help from the community about:

1 - Some wholesalers in my area who might have properties that are not currently on the MLS or might not go onto the MLS
2 - The best books or bigger pockets articles to read to educate myself as much as possible through this process
3 - Things that I should consider that I have not included in my post

Thank you in advance everyone

[Josh Hopwood]

Hi @Matt Pestridge

Sorry to hear about the divorce.

Yes things in Fort Collins go extremely fast and because of how most of them are priced the numbers don't always work with current rents.  In Greeley and even in Loveland small multifamilies are a bit easier to come by.  I just helped clients close on an off market duplex in Greeley that they are househacking.  Greeley has a lot of old homes that have been turned into small multifamily units that work for something like this.

But to answer the questions you did ask.

1- I have a list of wholesalers that I would be happy to email to you.  DM me with your email.  Some of them I have connected with personally and others I got there info from other investors but do not know them personally.

2-  If you are looking for an off market property I would read "Finding and Funding Great Deals" a BP book by @Anson Young.  You can also check out Brandon Turners book "The Book on Rental Property Investing."

3- Property managers often know if one of their clients is looking to sell one or many of their rental properties before they ever hit the market.  You might ask at the company that you work for if they know of anything that an investor might be looking to sell.  

There are a lot of great loan programs out there right now to take advantage of for small owner occupied multifamilies.  I was just talking to a lender I work with that has a program that give a buyer about 5% in downpayment assistance.  It is worth checking around to see whats out there.  I can connect you with that lender, just let me know.  

Let me know if I can be of any other help.