Chip Martin - Greetings from the Expensive City of Denver

[Chip Martin]

Good Morning BP!

My name is Chip Martin and I am very excited to start my real estate investing journey. I randomly bought @Brandon Turner's The Book on Rental Property Investing, which did two things for me - 1) it opened my eyes as to what was possible in the world of real estate investing, and 2) it introduced me to BP and the great community of real estate entrepreneurs that tell their inspiring stores. Ever since reading The Book on Rental Property Investing and learning of BP, I have devoured countless hours of the BP podcast and have been accumulating real estate books faster than I can read (currently have 5 waiting on the shelf as I read David Greene's Long-Distance Real Estate Investing). I tend to buy all the real estate books that are recommended by the guests. As you can imagine, I am looking to start my real estate investment career in a different market since Denver, CO isn't known for its ability to churn out countless rental properties that produce positive cash flow. I'd love to connect with some BP members that have already walked the path of long-distance real estate investing and talk through how they chose their market and how they set up systems that lead to their success. 

Look forward to engaging with you all,

Chip

[Ben Rhodin]

Hey @Chip Martin/Chip! Welcome to BP and welcome to the Denver investment world. I am wondering where you got the idea that Denver isn't able to produce cash flow properties? While it is true that traditional rentals don't do that strongly here, there are plenty of ways to make solid cash flow (upwards of $1,000 a month) here in Denver. Just to quickly name a few... rent-by-the-room, single-family property, with ADU or mother-in-law suite that you rent as a "duplex", short term rentals, and medium-term furnished rentals. I have clients (and myself) producing great cash flow here in Denver every day using these strategies, plus that you get to take advantage of our strong appreciation!

Personally, I always suggest starting your journey in your own backyard, as it gives you the experience and knowledge to then take it to other markets. Taking on a property by yourself out here, and managing, rehabbing (if applicable), and everything else involved will give you the confidence to walk the walk when you go out of state. Not to say it's absolutely necessary, but it's definitely helpful! I would also recommend house hacking, or working with your current residence if possible. These ways will give you a nice low-risk entry into REI, allowing you to more quickly gain confidence and be able to scale more quickly!

Happy to chat more regarding the Denver market, or advice on out-of-state markets as well! As I do both, you should also think about coming out to the House Hacker's meetup this Wednesday in Denver and mingle with some like-minded investors!