Chip Martin - Greetings from the Expensive City of Denver

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Chip Martin - Greetings from the Expensive City of Denver

Chip Martin
Denver, CO · Member since 2021 · 20 posts · 9 votes

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

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Ben RhodinBusiness Member
Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
5y

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!

[email protected]
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  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Chip Martin/Chip, good luck on your journey and you're in a great place to learn a lot from experienced investors. BP was very helpful to me when starting out. 

    0Reply
  • Ben RhodinBusiness Member
    Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
    5y

    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!

    [email protected]
    6Reply
  • Jeff WhiteBusiness Member
    Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
    5y

    @Chip Martin Those books are fantastic place to get started!  I wouldn't give up on Denver entirely since you live here and it is easier to manage than any out of state market (unless you have strong relationships in those markets). There are still deals out there that work if you are a little more creative than the next investor. It really depends on your goals. 

    If you are open to creative strategies such as rent by room, Airbnb, mother-in-law apartments, etc, you can still cash flow here in Denver. Rent-by-Room is one of my favorite strategies since you can buy a large single family house and rent it out by the bedroom vs. renting the whole unit out, you can get 1.2 to 1.5x rents by doing that strategy. It works best in suburbs that allow the most unrelated parties and reasonably-priced homes such as Arvada and Lakewood. 

    Also, both Arvada and Wheat Ridge allow Airbnb rentals, even as investment properties (laws could change in the future though), but that is another strategy that could cash flow well if managed properly since Denver metro has really good tourism in the spring and summer months.  

    4Reply
  • Melissa Wesling
    Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
    5y

    Hi Chip!  You are starting our right with research.  I am not in Denver, but we do self-manage our vacation rentals from a distance (drivable at just a 2.5 hour drive). If you are looking at doing short-term vacation rentals, let's connect and I can let you know some of the things we have in place that help us manage the properties on our own! 

    0Reply
  • Anthoney Hanks
    Real Estate Broker · Forney, TX · Member since 2019 · 1k+ posts · 399 votes
    5y

    @Chip Martin, welcome to the BP community! Wishing you the best of luck :)

    0Reply
  • Catie Lawrence
    Flipper/Rehabber · Arvada, CO · Member since 2019 · 63 posts · 47 votes
    5y

    Chip - welcome! You've chosen wisely my friend, this community is chocked full of knowledge. I'd check out @Anson Young 's Youtube series on Bigger Pockets on analyzing markets for deals - he also wrote a book and it's full of goodness. 

    My two cents....

    1. Get in forum posts/threads where you want to invest - I know you said you're still figuring that out, but I'm sure you have a short list. Start engaging with those peeps in those markets. 

    2. Speaking from someone who has 2 rentals here, 1 long distance - there are benefits to both. Cash flow is a little better in my LDR - but the appreciation/mortgage paydown in Colorado is unreal. Just saying.....buy-in is tough though, so I get it! 

    3. Think finding an agent who is investor-friendly/invests themselves is key too  - they can help point out the good neighborhoods in the cities you're looking at. 

    4. Practice makes money. Practice analyzing deals in this market, because you know it, then take those skills out-of-state when you have properties to look at. I'm saying this for myself as well - practicing analyzing makes you uber comfortable with it and once you land on a good property, you'll feel confident with the numbers. 


    Hope that helps - and super exciting!!! 

    Catie

    1Reply
  • Dan GuentherBusiness Member
    Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
    5y

    @Chip Martin

    Welcome to the BP community! 

    I'd like to second all the great advice here. I'm a fellow house hacker here in CO (Longmont). It is definitely possible to make the numbers work in hot/expensive markets like Denver if you're willing to get creative! I'm happy to connect and help out on your journey. 

    [email protected]720-295-1082
    Ten Ridge Realty LLC514 Reviews
    WebsiteView Page
    1Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    5y

    @Chip Martin

    It’s nice to have you here!

    This is a great forum with very knowledgeable members that will help to guide you in the right direction.

    If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users


    I really like the alerts feature that can quickly guide you to current topics that may be of interest: http://www.biggerpockets.com/alerts

    1Reply
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