New Member in Colorado looking to 1031 into multiple units

[Jeff Betschart]

My name is Jeff and I live in Parker Colorado. I have one Current Rental that we used to live in and am looking to 1031 exchange it and move the money into multiple properties in or out of state when the current lease is up June/July this year. Prices in Colorado are not very favorable right now to purchasing new rentals so I was looking at out of state markets perhaps Florida, Indianapolis or Tennesee? Not tied to these markets so any suggestions are more than welcome these are just the ones I have researched to date.

I also know I need a solid property management company.

I graduated from the University of Colorado a while ago and work in Aviation in the Denver area. I would like to get more involved in real estate to the point where I can get 10+ plus units to help supplement retirement some day.

I am looking to learn and open to any and all advice on next steps. 

The current plan is to 1031 my current property in June/July this year and take the equity and purchase multiple lower priced units probably out of state hopefully within the summer timeframe.  I am thinking about Turnkey units but I have a lot of questions about next steps.  I am more interested in Cash return at this point to help me build up my number of units. 

If there are any real estate investing groups in the or around the Parker Colorado area I would be interested to know about them. 

I have started talking to 1031 Agents, and Turnkey providers and plan to talk to as many people as I can before I sell this summer. 

Love to get advice on anything I have mentioned or what you might know I have forgotten to mention. 

Single Family

Multifamily, or Duplex +

1031 exchange tips

Finance for multiple purchases 

Turnkey recommendations

Property management company suggestions

Markets to look into

Regards
Jeff

[Phillip Bicker]

@Jeff Betschart

Welcome to BP and congrats on exploring your path to increasing your portfolio and doing what it takes reaching out to other BP members, 1031 Agents, Turnkeys, Realtors, investing groups before making the leap. 

A couple of quick suggestions - make sure to thoroughly vest and do your due diligence on any Turnkey companies you are considering. There are many here on BP with case studies and first hand experiences with these companies - if you are going out of state, consider flying out and make a weekend out of speaking to the companies, seeing some properties with them, and getting familiar with the market you are considering. You can do this without turnkey companies and there are many resources on BP about investing out of state (books, forums, podcasts). 

With that said, have you considered looking south in your own state? There are some pretty strong ROI's in Colorado Springs and you would have much more control and ability to vet your properties and teams living in the state. You can find MLS multi-unit deals for $80-100k per door with rents of $800-1,000 per unit. While this isn't your 2% rule, I think you will find this much stronger than anything possible in the Denver metro and much easier to manage than an out of state rental.

If you go even farther south, you might be able to find something in Pueblo for even less expensive, however, I am not certain of the market strength and growth - you would want to find a PM who has 100's of properties in the area to get the best feel for the market, where to look, and what type of rents and vacancies to expect.

At any rate, good luck with the sale of your current investment and finding where your money will be best utilized going forward and of course feel free to reach out if you have any questions!