All Forum Posts by: Bradley Nuse

@Jim Piety @Dave Ratto Apologies in the long delay, I've been overseas working. I unfortunately could not use my purchased property as an STR. Larimer County has some "qualifying and inspection" requirements before a property can be used as an STR. If you follow the link, you can read a bit more: Short-Term Rentals (STR) & Bed & Breakfast Options | Larimer County

None of the requirements are out of the ordinary.  Mostly safety, up-to-code inspections, etc.  However what disqualified me was a water well requirement.  My house has a water cistern system.  The Larimer County Planner that was assigned to help me make sure my house was up-to-code said I could appeal it at a county meeting for a dispensation, but that is a guaranteed 12-18 month delay.  And what Sam said is true.  Many of the houses up there were build by folks who "did what they want".  A lot of them don't have permits for the decks, or extra bedroom, or water well that would come with the property.  

With that being said, after asking a few other owners in the Estes area, they said it was a relatively simple process.  It took anywhere between 3 and 9 months, depending on how many properties were trying become STRs.  I'm still wanting to try the process, but for now I put in a long term tenants and it is doing very well.

I personally use a realtor named Matthew Malloy.  Here is his profile online:  

Matthew Malloy Broker Associate - CENTENNIAL, CO (recolorado.com)

It doesn't specifically say he services Estes Park area, but he has been helping me there for 2 years.  


 

I recently purchased a property near Estes Park, CO.  I came across that Larimer County, CO wants folks to register, be inspected, and pass a few different things and items before being "allowed" to rent their property on vacation rental websites (VRBO, AirBNB, etc).  None of it seems over the top, but more a nuisance and slow down to be able to list the property and start generating revenue.  

Has anyone had any experience going through this process?  What are the cumbersome steps in the process and what should I be prepared for?  Any insight and wisdom would be appreciated.  What setbacks, if any, were encountered and how did you mitigate them?  

Thanks all!

@Michael P.  Month rent is $750/mon in a C class neighborhood.  I do have pictures.  I'll try and get them up in a future post.  Currently at work without my personal computer.

@Shedrick Archangel Thank you, sir.  I'm really happy with it.  Started cash flowing immediately, which was nice.  I was able to refinance it pretty quickly with minor hiccups and pull most my money back out to pay off the initial 401k for a better 30 year note.  Everything else has been very smooth and easy.  

No, sir.  Made that mistake once.  

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $62,500
Cash invested: $62,500

Single family residence. 4b/1b, Acquired through a turnkey company.

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

I work internationally for up to 4 weeks at a time, and then

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

Turnkey provider

How did you finance this deal?

Simple 401k loan and cash on hand.

What was the outcome?

Property was already rented to a tenant was cashflowed immediately.

@James Wise I did not get a 3rd party inspection before or after the rehab.  That is something I will definitely keep in mind for the future, thanks for mentioning it.

Upon purchasing I was quoted what needed to be done, all itemized and listed out.  I was quoted that it would take a certain amount, so that is what I paid.  Morris Invest took care of the contractor.  I passed along what was done to the PM and they verified what was quoted was completed.  My only issue is the itemized list doesn't include itemized cost...so I paid a lump sum for the entire rehab and itemizing on for deductions/expenses isn't going to be easy.  

@Account Closed

Hey Aaron,  

I called an acquaintance in the area and asked for a drive by of the property when they were available.  They weren't able to make it before rehab started, but saw a crew working there on one drive by, and saw the work completed (or what looked like fresh paint and railing where there was supposed to be).  They said the house wasn't a dump compared to a few others in the larger neighborhood, but is definitely a C class property.  

As for the numbers, I took what they quoted me on the price and rehab and ran it against a few different rent amounts, along with PM fees, to make sure the ROI was in my requirement window.

I personally haven't seen the property, which isn't the wisest.  But have asked, and received, many photos from my PM and the before and after was apparent.  

Can I ultimately say it was or wasn't a scam or bad decision? That remains to be seen.  It is a learning experience for me in all steps.  But I can say I won't be using them in the future.  I was recommend another turnkey provider for this area by a few BP folks and plan to use it as a comparison.  

Thanks for the discussion all.

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $48,000
Cash invested: $48,000

2b/1b property with a basement area.

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

I work internationally and like the convenience of turnkey real estate. I still evaluate each deal to make sure it fits my pre-defined criteria for investing, but like to move quickly on properties as well.

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

Morris Invest turnkey company

Lessons learned? Challenges?

Morris Invest isn't the most communicative during the process of purchasing the property and transferring title. I would request updates and get none or very vague responses. However, the deal went through with no hiccups.

I keep receiving from them as well. I'd be interested to see if anyone had used them and stumbles upon this post to report in about them.  After reading their website it looks like they have some requirements, but they aren't crazy outrageous.