Investment strategies for the Denver market

[Justin M.]

Hello, my name is Justin and I am new to BP. I have been a real estate investor for about 8 years, with 1 property. However, up until the last 6 months or so, it was not much more than a hobby. I am taking the next step, beginning to treat it as a side business with more focus and looking to invest in more properties. I just recently bought my second property and while it was an ok deal, I feel like I could do better.

I am curious what others have been successful with in our market, with property prices being at what seems to be around the high point? I made my most recent deal work by buying one of the "cheaper" units in the area and putting 25% down to get the numbers where I wanted them. Unfortunately I do not have an endless stream of cash to continue to do that, so interested in other options :)

My focus is buy and hold with properties that produce cash flow immediately, pretty standard, I think. Right now I have units that are in either duplex or fourplex townhomes. My plan is to stick with those and hopefully entire multifamily's eventually. I am looking into how I can start the BRRRR process, as that seems to be a good option.

Thanks for your thoughts!

[Matt M.]

If you don't want to put up the 25% down, then you have to find something off market that is way undervalued(doable, but hard). If you have a primary home, then you might be able to pull some cash out for another deal. 

A third option is to buy a new place for yourself with just a little down, live in it a year, then turn it into a rental, and buy another one. The only issue is that you might not CF as much as you want.