First investment property in Arvada, CO

[Richard Updegrove]

Investment Info:

Single-family residence buy & hold investment in Arvada.

Purchase price: $272,000
Cash invested: $22,000

I purchased this home as my primary residence in 2015 with a 3.5% fha loan. This home is a 1400 sq. foot updated 2 bedroom 2 bathroom single family. I refinanced out of my pmi in 2017 and switched to a 15 year conventional. In June 2019 I purchased a new primary and turned this home into my first rental! I’m not currently cash flowing on the property but I am putting back $200 a month. I plan on doing a cash out refi soon to free up funds for my next purchase and provide cash flow.

What made you interested in investing in this type of deal?

After spending hours on bigger pockets and listening to podcasts I was completely hooked on the idea of becoming a real estate investor. I thought about Purchasing out of state but decided to go with the nomad/live in then rent strategy to get started.

How did you find this deal and how did you negotiate it?

Worked with my real estate agent to find the property. I got lucky as this home was a bit too small for families which worked to my advantage. It was super stressful trying to purchase in the Denver area in 2015!

How did you finance this deal?

FHA loan with 3.5% down.

How did you add value to the deal?

I’ve had to replace the roof and put in a new HVAC system.

What was the outcome?

I turned my first home into my first investment property which I plan on holding for the long term.

Lessons learned? Challenges?

Finding a great real estate agent is crucial when getting started. My agent knew the area well and found me a house in an up and coming neighborhood. After managing my first rental, I believe that setting rental standards/requirements and doing a thorough background check is crucial to finding amazing tenants.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent is awesome! Reach out if you need a solid agent in the Denver area.

[Tyler Howell]

@Richard Updegrove Good buy - SFRs in the suburbs are where it's at for rentals in Denver. Make sure to find a good CPA competent in accelerated depreciation. They can put thousands back into your pocket each year by depreciating that roof and HVAC on a faster schedule than the 27.5 year schedule the structure depreciates at.