@Daniel Levine How much risk and hands on do you want to be?
@Anson Young does a meetup in the Denver area. It would be a good place to "pick the brains" of some Colorado Investors. Here is his post for the April 27th one:
There are plenty of turnkey RE investments out there but if I was in your shoes, I would want to be hands on and do some, if not all, of the rehab myself so I could handle those phone calls from your renters if you decide to be a Landlord.
Multifamily might be an option for you and might be a good one since the rents in the Denver area keep going up and up.
How long have you been in the Conifer area? I grew up in the Littleton area, and would love to have some property in the Mountains of Colorado.
Good luck in whatever you decide to do.
Robert
Yes, I will be there Monday and plan on picking there brains. I have been looking in the Front range and seeing some stuff but the cap rates seem low. I have lived in Conifer going on 8 years.
No doubt the cap rates are low and the margins are slim all along the front range.
Personally, I would pick cities where I had trusted boots on the ground to do some scouting for me and then start analyzing deals using the Bigger Pockets Rental Properties Calculator to see where I would get the best returns, then handicap those returns using population and demographic trends -
Basically I would find the best place to purchase buy and hold properties where I had someone I could trust on the ground.
Then I would build a team (property management, real estate agent) by asking for recommendations on BP and start buying properties. You could do the same with flipping, I'm just more of a buy & hold guy myself.
Hmm well lets see here 180k. First I would go buy a GMC Z71 4x4 PU truck SLT crew cab 20" wheels and all the extra goodies 50k cha ching so now we are down to 130k so next I buy my wife those new triple pane windows for the crib she has been wanting 22k cha ching now down to 108k so next I buy a master bath remodel 18k cha ching so now down to 90k so next I buy those new plantation blinds (must have for new windows) 3k cha ching so now down to 87k so next my wife has to have a new car 37k cha ching so now down to 50k so next I use 20k cha ching to pay off credit cards and misc debt so now down to 30k so next the kitchen has to be remodeled 35k cha ching OOPS now I am 5k in the hole YIKES. We will need more cash than 180k that is for sure. Dang it man that 180k cost me 5k OUT OF POCKET Cash on Cash LOSS
First, what is your goal and what is your timeline: $$$, # of deals, education & experience, Kingdom with a Castle and time 6 months, 1,2,3yr for phase 1?
Second, what is your personality type: methodical, impatient, micro/macro thinker, deal maker, hands on/off, Rogue Captan?
These simple quips can be a deceptively sneaky trip line at times.
To me there are some sound suggestions listed but it will invariably depend on your fundamentals starting out cold, if this is the case. Luckily, your job keeps the status quo without the added pressure to "make it" right away. You have built and sold a business so you understand the importance of building a foundation and longer term adaptable plan. When flush with cash it can be to temping to buy in on deals or start in the middle when one needed to begin a few steps back.
Having been in your situation a number of years ago (via real estate) there is wisdom in starting small and then looking for bigger deals with leverage when comfortable or opportunistic. Consider a few JV deals in the timeline which will expand your network, minimize risk in new areas and give you a bit of a backstop. It can also create an additional exit strategy through a buyout. Having a downstroke available can be very empowering but it is all relative to the strategy of the goal and where one is not the # of 0s in the deal. The oar in the water is to be able to add value on a discounted purchase. With that said, $180k can kick off a lot of SFR flips in a single year but it probably won't get you into a 1MM multi deal on your own so whats the goal and what is the timeline...and what are you comfortable with starting out?
With that amount you would be able to invest in the higher cash flow, high appreciation, low expenses and low vacancy areas like the California coast or even Honolulu.
I don't know about Honolulu, but $180,000 doesn't get much in "California coast"
I used to live in Orange County California (Tustin) and $180,000 will get you a down payment and a cash flow of NEGATIVE $1500-2000 a month.
I now live in Michigan where $180,000 could get you $20,000 cash flow per month!
...Geez, everyone must be real estate millionaires in Michigan.