The main house is 3/1 lower and 2/1 upper and the garage was converted into the 1 bedroom 550sqft.

In this town average rents- found by comparing other rentals in the area by size and condition are $800, $1000, and $1200. That is $3,000 a month and at 135k the debt service including utilities, escrow, vacancy, repairs comes out under $2000 a month. This property does need some repairs, I am estimating around 20k-25k worth of repairs (I am the co-owner of a remodeling company and will be doing all the repairs with my crew- at cost)

I am also looking at the regulations to qualify for HUD/sect 8. To ensure I am able to get steady payments without having to deal with tenants. (If anyone has experience with this in Colorado please reach out as I would like to learn more about what to expect and the process.)

My current dilemma is I recently what I call "slingshotted" from renting a Condo for 1750 a month to owning a 5 bedroom 2900sqft home that I bought under market and renovated after saving some money up and am planning to turn it into a co-living property once I put the finishing touches on it. However I used a VA loan to finance this, so I am stuck for at-least a year before being able to refinance. My purchase price was at 395k with a 15k comp. We used it to install radon mitigation, clean the chimney, covered the inspection fee, sewer scope, a 14 month home maintenance and appliance warranty and got a few things touched up and the rest went to principal.
I decided to do a live in home renovation on this one and it took a little longer than anticipated- about 2.5 months.

However, now I see this killer deal and really feel I should move on it. As if something in the universe is telling me I need to buy this property. I am looking at private lending and DSCR loans but I am not able to make both a down payment (30 percent LTV) and cover the remodeling costs. I just don't have the funds to do it. I am hoping to reach out to the owner and see if he would be interested in owner financing. I just don't know what to do to make this happen. This rental has the potential for killer cashflow at a super low price. 2 bedroom 800sqft homes on the same street are selling for 30-40k more than this. Aside from any major foundation issues, asbestos, or meth fire im not really sure what the downside here would be. Any advice fellow investors?

Colorado Springs, Colorado

1 Vote