All Forum Posts by: Brett Chaponot

It depends on you and your brothers personal situations. Knowing what you've listed I would keep the property and get a renter in after background and credit checks. The biggest complication is the business plan between your brother and you. How will you value a buy out if one of you needs to cash out? Who's responsible for what duties of the rental? If you can settle these things than I love the idea of expanding your investment portfolio together or separately. Borrow against the equity so you're still cash flowing on the first property at a good rate to pay expenses. This would be an awesome retirement plan for both of you!

I'm a realtor nearby, let me know if you'd like some negotiation assistance. 

Know your lenders reputation and turn around times. You can lose a deal if you're not working with the right team in multiple offer situations. And it's always good to shop around. Banks typically don't refinance as well as some of the credit unions or others. 

@Fabrizio Vallejos That's great to get started early! Also, you spelled 'College' wrong. Collage is for crafting, auto correct can't always save you. As a young person, double check your work. A mistake like that WILL cost you a chance during college application time. 

Look into a college painting business. It's a great way to cash flow to get that first property. Spend your first year in the dorms if you can. My best friends in life are from the dorms. And get a high count bedroom house for your first property and throw all your college friends in there and don't tear the place up too bad. The cash flow on renters will help expedite the loan for the next property. 

Peter Schuyler there's a couple ways to attack this. They are a little strict about how things get done. I don't know if laws have changed. Check on the state websites for the exact rules. A couple of the big things... 1. You can't give her money once she moves there and maybe some time before. Write checks to grandma and grandpa who can gift her support. In 2005 the limit was $10k per year per grandparent. 2. Get her there a month before school starts. So residency will be established well before the second year, first semester. 3. Get her employed. You do have to show income and self sufficiency. 4. She has to stay in Colorado. Don't let her visit you in Texas for Christmas, summer, and thanksgiving. You can go to her but there is an odd rule on this. 5. Give me a call and I can connect you with some of my Colorado connections.

If the numbers work. What are the comps and numbers you're estimating?

It worked for me. University of Northern Colorado graduate. My parents even cosigned on the mortgage. Having the property got me in state tuition. And then I got to sell it at a hefty profit due to market timing.

Hey @Christine Prelaz, I've done some Denver investing in condo's. Made some GREAT money there. But every property is different. HOA fees vary from $50 - $450 on properties. Denver HOA's aren't as strict on owner occupants as they seem to be here in Sacramento, CA. But I got a town home in the dayton triangle in 2014 for $234k, I rent it for $2K a month, and my HOA is $307 but I still cash flow very well. I have almost no expenses on the property yet. I think condo investing is a great way to start a more conservative portfolio because the HOA is responsible for a lot of items. We just got new roofs, siding painted, and my renters love the pool in the summer.

So, I think you're looking at the wrong figures unless you're looking to buy a very old condo that needs a lot of work. The HOA fee is the biggest factor considering mines is 38% of my mortgage. Insurance is pretty cheap there for investor condo's. I think I pay $50 a month.

What year are you in school @Fabrizio Vallejos?

I'm not the listing agent on this property, I'm just curious to see how others determine their numbers. This popped up on the MLS today and I'm interested to how the BP community would analyze this.

3bd/2ba, $178,100, 1314 sq ft, built 1952, taxes ~$2k, no HOA, bank owned.

How are you assuming rent?

CapEx?

Being in California do you ever factor in appreciation on your calculations if all the other numbers look good?