All Forum Posts by: AJ Johnson

Hi @Kristen K. Burke, welcome to BP! I am a wholesaler in the front range I can tell you that right now deals are very hard to come by. Up north you are really fighting with retail since the homes are just nice enough to be turnkey. In Denver, we are actually getting into bidding wars at list price to buy properties! There are deals to be had, you just have to be sure on your numbers and be patient. Like some other said, join the groups and meetups and get plugged in. It's a very welcoming community so you'll learn a lot and make some great connections. 

Hi @Chris Sonnleitner, glad you found the BP family. Colorado is very competitive, and the Denver Metro area specifically. As for going rural for your flip(s), I'd look up north to places like Ft. Collins, Loveland, Greeley, etc. These areas will give you a lower price point and slightly less competition. Those areas are booming in residential sales right now and that is also driving the flip market. Plus, Ft. Collins and Greeley are both college towns if you want to go that route for investing down the road. As for ARV, that is a bit harder up north as there are usually fewer comps, especially for recently flipped homes. Best of luck!

@Tom S. - I realize better deals are out there, but I really like the idea of having local rentals, so it's more emotionally based rather than economically. That said, this area has seen 6 to 8 % appreciation in the recent years ( I bought my first home here for $340K in 2013, I sold in August for 485K) and it's still going strong. So, even if appreciation slows and they climb 50K each, I now have $850k of home that I can either refi and hold or sell, take the profits and go in a different direction with much more starting capital. 

Again, I am new to this, so my logic/reasoning may be way off. I'm just looking to get my first deal done even if it's not perfect. 

So I am in negotiations with a friend to buy 2 local rental properties, both 2 bed/2 bath- which would be my first investment property. Total value is $750K, and his mortgage is 1800 total for both. I would put 25K down (he doesn't need big money ASAP) for a total loan of $725k. Running numbers I can pay his mortgage plus $400 per month (so $2200 total) and still have $400 left for me. The homes are near Boulder, Co, so the possible rise in home value and/or rent rates is very appealing. 

The question is that he wants an interest rate based on the 725K "loan". I explained that he is not giving me any of his actual money, rather the loan is based on the value of the homes. I said that I am basically paying him $400 to allow me to pay his mortgage, deal with tenants, and take care of repairs, etc. 

Also, I offered a balloon payment after 5 years. By my math, that equals me paying 132,000 to him over 5 years, then owing him $618,000. He says that my monthly payments are really only the $400, not the full $2200 as he would be paying that anyways.

So who is right here or are we both a bit right/wrong. I understand that seller financing really comes down to whatever we agree to, but he has put it on me to present him with the structure and I want to be fair and honest from the start. 

Hi Michele, there are a few good groups in the area. Investor Network Community has a monthly meet up in Louisville with a diverse membership and good attendance. They have a speaker, time for questions and networking. There is also the BARE (Bad *** Real Estate) meetups that are in different areas (Boulder and Erie are the closest) some are focused on commercial, some are general. These meet ups don't have a formal schedule and are a loose format of just mingling around and talking with others over a beer or 2. There is also ICOR, which is general in it's membership and has a specific format for their events. The closest event is in Fort Collins, and I have not been to this particular group so I can't speak directly about it. 

Hope this helps. 

Thanks for the input @Michael Baum. That all makes sense. I am going to make an appointment to go there, tour the place and get some questions answered. 

 Thanks Matt, that is a great resource I will definitely use. 

Yeah, that is a great unknown at this point. Typically in the mountain condos it's $400/month or more. 

I am Realtor near Boulder, Co. and am taking the plunge into investing myself. I basically want to buy a home in the mountains and have STR subsidize some/most of the mortgage. I came across this new community and it got me interested.

It is located in Granby, Co. just behind Rocky Mtn Park, with 3 lakes, a small town and 30' from Winter Park Ski Resort. It's a funky area as it has camping and RV sites, and cabins along with the homes. There are some pretty cool looking amenities that would attract a lot of people. Here's the layout: https://3dq1fq1lesjd1aw5045f5a6h-wpengine.netdna-ssl.com/wp-content/uploads/2020/01/river-run-site-map.pdf . 

The home we are looking is 250K and can easily be made into a STR- here's the layout https://3dq1fq1lesjd1aw5045f5a6h-wpengine.netdna-ssl.com/wp-content/uploads/2019/07/river-run-villa-lookout-lodge.pdf

I'm worried I'd be competing with the cabins renting for 130 to 150/night. Plus, this is a brand new community being built, so there is obvious risk in the unknown. 

Thinking I would put it at 150/night to be competitive. With putting 10% down that leaves me around 1100 for my mortgage (no idea on HOA, other fees yet). If I rent it 10 nights a month that puts me at $1500/month, which should cover the mortgage and fees. Is this reasonable to assume?

Yes, I completely agree that a roofer should be present when the adjuster comes. In my experience with older roofs, the tricky part is that the adjuster has to decide what damage came from the storm and what is just wear and tear. I'm a bit cautions and unless the roof was just trashed from a recent storm, I never guarantee a client that the insurance company will pay for it. Some insurance companies are easier than others, and some adjusters feel like they are writing the check from their own pocket- you just never know.....