All Forum Posts by: Ben Rhodin

Looking to buy a ticket if anyone has one available. DM me.

 Hey there Katie! great question! It is important to understand municipality rules and then County wide rules. The county-wide rules are effective when it is unincorporated, or a municipality doesn't have its own rules. In the case of the Denver Metro cities that fall into JeffCo, mainly Arvada, Wheat Ridge, Golden, Lakewood, and Morrison, they all have their own regulations for or against STRs. So it is a chore to dig into and understand all the different rules you have in place, but I am more than happy to assist. If you are in unincorporated Jeffco or anywhere in the foothills, they all follow JeffCo rules, which are changing, but from what I have been hearing, it will be for mostly the better, as currently only 10% of STRs in Jeffco are licensed, due to one stupid regulation... The one acre required lot size rule.

Reach out anytime if you want to chat more!

Hey @Charles Schmidt! There are definitely still opportunities, even in the "lower" price points here in Denver, and the surrounding areas. I personally flip in today's market, and have one going on currently. Beyond that, I have a handful of clients that are currently looking, or working on flips. I will agree with @James Carlson that a lot of the deals that I look at won't pencil, but you have to know how to negotiate them and weed through the trash. Most of our flip properties don't get picked up at the advertised price, and we have even negotiated seller-financed flip deals. 

Happy to connect more and help in any way I can!

Hey @Halley Havlicek! Lots of great advice in here already, and I will echo almost everyone's response. My answer would be to not get stuck researching for the "perfect" strategy, and just get in. In other words, don't get trapped in the shiny object syndrome. I always tell people there is no right way to invest in real estate, and it's more important to get in and get started. You can always pivot or change down the line if what you choose is not your favorite, but making a decision is more important than anything. 

 That's Awesome! If you are looking to connect when you are in town, feel free to reach out. Happy to chat about what we are finding in today's market.

Hey @Rafael Mercedes! Welcome to the forums and Denver! Sounds like you have had quite the experience over your career. I'm an investor, and Realtor here in the Denver area, always happy to connect with other individuals in the space. Do you currently have any real estate investments, or working towards your first one?

Hi @Susan Lincoln! Welcome to the forums and thank you for using your property for such a good purpose, people forget the impact that Real Estate investors can have and get caught up in the money. 

I am an investor-friendly Realtor here in the Denver Metro area, and a flipper and investor myself. Colorado has a lot of great things going for it as a market, and we have some tertiary markets that have seen tremendous growth in the last few years. What is your buy box? Are you looking to continue in the Multifamily family, and do you want to stick with Long term rentals, or open to other strategies?

Hey @Austin Plough! There are a lot of questions to unpack in your post so I'll do my best to answer them all, but feel free to reach out if you want to discuss them in more detail. I am an investor, Realtor, and flipper here in the Denver Metro, so am quite well-versed in these items. Honestly, the short answer is... It takes experience. Especially with estimating renovation costs, that just comes from doing it over and over again, and knowing what things cost. What I typically recommend newer investors do, is have three contractors walk the property, or give them a detailed Scope of work with pictures or a walkthrough of the property. Then these contractor quotes will be your "worst-case scenario" for renovation costs. If this won't work for you, you can always google "average cost of _______" and get a rough idea that way. But always go on the high end, to be conservative. If you want very rough numbers, a rehab can range from $15 per square foot for a very light cosmetic face lift, up to $50+ per square foot for a full gut rehab.

As for determining the value after the work is complete, you are simply talking about finding its ARV (After Repair Value). You can do this yourself by finding recently sold properties of like kind in the area, and seeing what they have been selling for. Or you can just ask your Realtor to run a report for you. Comping properties is an art form and you need to know how to do it properly or you risk over or underestimating the value.

Hope that helps! If you want I am more than happy to give my two cents on the property! Just feel free to DM me!

Hey @RJ Cincotta! Welcome to the forums and congratulations on taking the first steps! Colorado is an amazing market to invest in, and if you are quick to move, Q4 is shaping up to be a great time for investors. We are already locking up deals for well below market value, and with a good amount of concessions to assist with current interest rates. And that is just traditional purchases, we are also seeing a tick-up in creative financing deals.

Finding a deal, and your first investment will come down to understanding your goals and situation. Long-term rentals are very challenging to create cash flow here in the Colorado market unless you are looking at a tremendous value add, or putting down a significant down payment. But if you are looking for future growth, then it can still be beneficial. Otherwise, I would look into more creative strategies... MTR, STR, or combo.

I always say there isn't a one-size-fits-all in investing, so understanding you as investors is key to making sure you get into a property that supports your goals. Feel free to reach out if you want to continue a conversation!

Hey @Rafi Barash! Already have a ton of great info in here, and your plan is definitely solid. @Jeff White already hit the nail on the head as far as your options, and I'll agree that split strategies is a great way to go, as you hedge your bets against any downsides. Renting by the room is great, but getting and keeping 5-7 bedrooms rented can sometimes pose a challenge. Just like if you put all your eggs in the STR basket and it either doesn't go as planned, or you hate the management of it then you are stuck. If you double up and rent bedrooms, and have a STR/MTR then you'll always have something coming in. Having exit strategies is what makes people successful in this market.

Personally, I like to stick in the suburbs of Denver, mainly on the West side (Lakewood, Wheatridge, Arvada, Westminster, Etc...) But depending on the strategy (especially MTR) there are some really good pockets in Aurora, and Englewood that you can look at that also can come at a lower price point. 

As for your questions...

- What areas near Denver are best for SFH house hack?

Answered above...

- 550-750k is a big range, thoughts on going with lower price further outside Denver (ex: Lakewood or Arvada) or higher price in more desirable area (ex: Sloan's Lake)
Your range is plenty, personally I start seeing a diminishing return on investment past the 700k price point. You aren't getting much more house, and the rents don't increase enough to support the higher price.

- Should I be more open to multi-family / townhome?

Multi-family yes, Townhomes no, unless you can't qualify. But with you giving a price range, Im assuming you are pre apporved.

- Should I put closer to 20% down or leverage more with 10-15% down?
Personally, I like to keep capital in my pocket, and you'll have to take into account furnishing, repairs, closing costs and improvements on top of the down payment itself. But it will come down to your goals, if you are looking to maximize cash flow, then a higher down payment will help. If you are focused on the return, or accumulating properties, the higher leverage will be your friend.

You are already on a great path, and personally, I would get started ASAP before the new year, as Jeff mentioned Q4 will be the time to pick up deals with the limited competition. We are already locking up deals well below market value, with max seller concessions to help on the rate, and closing costs. Feel free to reach out anytime!