All Forum Posts by: Brandon Itkin

Hey, Brandon! I actually grew up in Aurora! I know the area very well and while it can be a challenge finding anything sizeable in the Denver metro for less than 500k, there are definitely some options with 3 bed/3.5 bath that will work with your budget. Aurora has a strong rental market, but the areas that John Mayer mentioned are also excellent for investments. Englewood and Lakewood are personally some of my favorite areas and they offer a lot of desirability because of how accessible both downtown and the mountains are. The more competitive you can be with your offer, the better. I recommend checking out a service like Accept.inc which can help you get pre-approved for your mortgage and then negotiate as if you have a full cash offer. 

Hi @Brandon Itkin!

I don't see an issue with your budget of $450k. $450k is the sweet spot we use for our house hacking clients, we look for 4+ bedrooms where you can easily add one or two bedrooms. This usually ends up being a typical ranch home with a basement, which will usually have 3/1 upstairs, and depending on how the previous owners set up the basement a 2/1 downstairs. These homes are the typical "starter" home so they tend to get less competitive as they aren't as desirable as the more custom newer builds. 

These properties also lend themselves better for after you move out, as they are easily converted to a single-family with an in-law suite in the basement, so you can rent each floor as a separate unit, instead of the whole house as one. You will see roughly a 30-40% increase in rental income this way, over a typical single-family rental. As that is the issue with most single families here in Denver, that they don't cash flow as is. Having to rely on maintaining rent by the room can be challenging as well after you move out, because of the increased work it takes, and the lack of property managers that will handle it.

I rarely have to get a client to go up to 500k unless they want the creme de la creme of homes, for a house hack. I think you are getting stuck on the bathrooms, as long as there is 1 bathroom for every 3 bedrooms you will be fine. You will rarely see a home with equal bathrooms to bedrooms, and will usually mean a very custom home, hence the price premium. Typically you will see 2 to 2.5 baths, one on each level, and maybe a master ensuite. 

Personally, I tend to steer people towards the north and west of Denver (Westminster, Arvada, Lakewood) as these areas are a bit more developed, and have good proximity for multitudes of tenants. They are typically within 30 minutes of downtown Denver, Boulder, and the mountains. So you have a greater pool for tenants than when you get south or east of Denver.

@Brandon Itkin

It’s very feasible. I just did a Redfin search of recently sold (in the last 6 months), 5+ bedroom, 2000+ sq ft homes in the neighborhoods I listed out to you and found 250 closed listings less than $500K.

You don’t need a bathroom for every tenant. I have a 6bd 2 bath and have had zero problems with 5 tenants + my wife and I. Obviously the more the better, but the more important thing is parking. You want to have as much off street parking as possible. My home has a three car garage and 3 off street parking stalls. That’s total overkill, but it helps keep the neighbors eyes off of you if you aren’t following code (ie too many unrelated people in a house), and it is a very desirable thing for tenants.

@Brandon Itkin A lot will depend on your budget. I personally think a good area to house hack, with probably the best chance of getting the highest rent-purchase ratios will be Aurora. You have the military base close by that could provide quality renters, plus quite a few of the major hospitals (Childrens, CU Anschutz, etc). 

I'd highly recommed  you get prequalified with a lender before making offers, as that will make you much more comptetive in the market. I can also recommend a few good Realtors who sprecialize at looking for properties to house hack. 

@Brandon Itkin

I focused on 5-6 bedroom houses with lots of off street parking in the 400-500k price range in: Thornton, Arvada, Lakewood, Barnum, Barnum West, Villa Park, Englewood (near DU). Find something within those parameters with some good photo appeal and an updated/open layout you can reasonably expect $700-$800 per room. Finding homes with value-add potential is a plus if you have money for a small renno, but it’s possible to find a pretty turn key home. However, because Denver is so tight, do expect to put in at least $10K in light touch ups in order make attractive offers to sellers (ie fast closing, limited inspection objections).