New investor looking to learn more on real estate investing

[Tanner Pile]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Just starting my real estate investment journey and looking to connect with others in the Colorado Springs, CO area.

[James Carlson]

@Tanner Pile

Congrats on taking the first step. A few thoughts on the Colorado Springs market for investments and a few thoughts on getting started in real estate in general:

• Colorado Springs is not a cash-flow market. Can you do it? Yes, but you've got to get creative: 
  • Do a value-add thing -- find a home in need of love and put in the money, time and effort to bring it up. 
  • House hack with a rent-by-the-room model. Grab a moderately priced 4br home and rent $700-$750/room.
• Multi-units are tough to come by in Colorado Springs. I'm sounding like a downer here, but even when they do arise, you're competing against others who often have cash. You either have to be patient or ready to overpay a bit and play the appreciation game.
• Everyone's different, but I'm a big proponent of making that first deal an easy win. Keep it simple. Buy a SFH in a secondary ring of the market, rent it by the room or just do a simple long-term rental. You'll break even or get a touch of cash flow and watch it grow in appreciation over the next few years.