Success in Colorado Springs Colorado

[Brent Bowers]

The Colorado Springs market is extremely hot right now when it comes to buy fix and flips and rentals. I focus on the rental market. There is always a lack of nice, quality affordable rentals out there. Back in January 2016 I found a man looking to sell one of his properties that has 3 units. We formed an LLC and we went into partnership together where I would invest $60,000 into his 3 units and that would be my buy in. I got the money from my HELOC (2.4% interest) on one of my Paid for rentals. This project ended up costing me about 75K instead of 60K, but I held up my end of the deal. All three units were actually rented out to GREAT tenants before we even completed the rehab. The property has a mortgage of 116K and I invested 75K. Total money into the deal is 191K. The after repair value is 265K. We have equity of 74K. This is nothing impressive because I have to split this equity with the previous owner who is now my partner in this deal. But, since I am a cash flow investor and not a capital gains investor I am happy. Our total expenses for this property is a mortgage payment of $850 per month with a payoff of 26 years plus my HELOC payment of $600 per month with a payoff of 7 years. Total outgoing expenses = $1,450 Total incoming rents for 3 units = $3,215. This is a positive cash flow of $1,765 per month. This does not include maintenance or capital expenditures, but the entire interior is new from floor to the ceiling so expenses should be limited for at least 5-10 years except minor repairs.

And Thank you  to my Realtor @Colin Smith for referring me to Attorney @Tim Priebe and my Contractor Shane with Vitalized Homes. It would have been impossible to do a deal like this without the above mentioned peoples help. It takes a village! If you don't already have Attorneys, Realtors, General Contractors and plumbers don't let this stop you. You will find everyone you need to make these deals work. My past has been to find a property and figure out a way to make the deal work.