Beginner interested in house hacking and BRRRR in Denver

[Alexander Mears]

Hey guys,

I just moved to Denver, Colorado from Buffalo, New York and I'm looking to start investing in real estate. Obviously the market's crazy here. Since my last post I have gone to a few different lenders to see what kind of loan I can get for an investment like this. The next step is obviously pulling the trigger on purchasing a house. is there any areas in particular around here I should look in? is there anything about any of the areas that I should know about? And if anybody has any advice whatsoever I am completely open to hearing it. I'm as green as it gets and anything would help!

Thanks

[Jeff White]

@Alexander Mears Welcome to Denver!  

 Similar to Steve, I also like the west side of Denver since you have those supply restrictions and good price points for house hacks in Lakewood and west Denver neighborhoods (Barnum, Village Park, Valverte,Westwood, Athmar Park, etc) near 6th avenue, and you find more properties that already are split up with mother-in-law basements, additions, separate entrances, etc that make great candidates for house hacks. In those areas, you can find a solid house hack between 400-450K. 

I'm also a fan of the north and northwest part of Denver metro as well: Thornton, Northglenn, Westminster, and Arvada. Solid price points while still close to downtown and the mountains, and also, price points for a good house hack between 400-450K.  

Where's my man @Craig Curelop to vouch for northwest Denver?? 

As you will find out, the closer that you get to downtown Denver, the more expensive the property will most likely be relative to similar properties in the areas that I mentioned above.

The best strategy to maximize cash flow in the 2020 Denver market is the rent-by-the-room model, which I'm sure you are familiar with if you just graduated college.

The strategy is simple: purchase the biggest single family house that you qualify for with the most number of bedrooms/bathrooms, and then live in one room and rent out the others. Even in this market of high prices for a house in Denver, you can easily cash flow $1,000+ per month. It is more work than a traditional rental since you have more tenants, but since you are living there, you will learn a lot by self-managing and getting hands-on experience.