All Forum Posts by: Chris Freeburg

I agree with @Samuel Whelan. This is a math problem. Your student loan debt interest rate is 3.55%. We're right to acknowledge the risk of investment, because there are no guarantees in life except death and taxes. That being said, the historical return in the stock market is 10%. The average appreciation in Denver has been 6% over the last 50 years, not to mention the benefits of debt paydown, depreciation, and cash flow that makes the actual cash-on-cash return of REI much greater (and this is the true power of house hacking, but that's another post entirely).

I often repeat the sage wisdom from Warren Buffet that it's not about timing the market, but it's time IN the market. And here's why: As @Nick Elder points out, in just the past month, we've seen 6.7% appreciation for SFHs in Denver and almost 20% in the last year. At some point (if not already), buyers will be legitimately priced out of the market.

However, Buffet is more well known for his quote that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.”

Especially in New York City, this is a golden time to get in the market when interest rates are low and housing prices have softened. We all know that city is going to bounce back, it may take time, but that city is not going anywhere. I firmly believe in the importance of self-education so investors are empowered to make their own decisions and my style is to provide that information rather than tell other people what to do. However, I can say if I lived in NYC, I would be doing whatever I could to buy now.

@Nicolas Bowers Even though Colorado Springs has gotten more expensive, our market data shows no signs of slowing down. The Front Range population is expected to double by 2050. Right now, we have less than 2 weeks of inventory.

Maybe you can get into other market for less, but will you experience the same appreciation as here in CO? Do you want more to be more hands-on with your investments? 5 years from now will you again be wishing you had purchased property here? Just some questions for you to consider as you begin the REI journey.

Here's another thought: Have you heard of NOMADing? You turn your current SFH into a rental when you buy a new home. For investors with families, it's a great way to take advantage of the low down payment, low interest rate, owner-occupied home loans.

@Justin Goldwater Dude, at first, I thinking: "This guy is totally describing Denver," until I got to your second condition. My immediate next thought was: what about Colorado Springs? Ok, to be honest, that markets is just as competitive and no longer falls in your target price. To be honest, I think you will be hard-pressed to find the city you describe: Fun place to live, healthy economy and increasing job prospects, strong University system, and cheap starter homes. That is what every person is looking for, let alone every investor.

But, I'll do my best. Here are some of my thoughts:

1) Look to the midwest and the NE. I'm thinking the rust belt cities like Columbus, OH or Cincinnati or the colder New England states like Maine and Vermont. Will that fall in your price target? I'll leave that question to the local real estate experts.

2) I do think you're starting with the RIGHT question: Where do I want to live?, especially with the freedom it sounds like you have now. Take advantage of this opportunity, because will always be opportunities to invest, but time is the one true finite resource. In my perspective, that's what this REI journey is all about: How can I live the life I truly want to live?

*Also, BP tip, other uses have certain keywords flagged, like "Burlington," which will draw attention from those local experts. My post will likely draw some attention for you from the places I suggested above, but if you want more specific markets, add those to your post!

@Ebe Chinweze Congrats! I love the beauty of the house hack, and the rewards really pay off when it comes time to sell! What are you looking for in Denver? The market is tough right now!

@Mathew Fuller I love the question.

I invest where I live in NW Denver. It's the beauty of house hacking. Low downpayment, great interest rate, live in a cool neighborhood, all while having my tenants pay my mortgage and building a real estate investment portfolio. 

@Michael McClearn The househack! I love it - it's the way to go!

@James Rodenberg All about the set-up. I house hack and so I self-manage. PM takes about 10% off the top. Not worth it to me when I'm on site. 

@Celeste McKeon I've got new investors under contract on a scrape and build for 4-5 urban homes on 2 side-by-side lots in W. Denver. They were able to secure a GC for less than $200/sq ft, which is tough to find. All in, after demo, site prep, change orders, I expect they'll be closer to $225/sq ft. Still, with homes selling at $450/sq ft and rising, it's a great investment.

Let me know and I'd be happy to set up a time to walk through details.

Denver March Stats were just released. March definitely roared in like a lion.

Investors are always asking about the Denver market, so I thought I'd share:

Here are the numbers in brief:

Avg. close price for detached SFH: New record @ $674,990, up 6.72% from Feb '21 and up 19.3% March '20.

DOM (days on market): Record low avg. 15 days and tied record median 4 DOM.

Detached Inventory: 0.39 months. (With no new inventory, all the homes would be gone in less than 12 days.)

All Residential Inventory: Record low of 1,921 available listings for sale. 5.09 percent below Feb '21 and 66.74 percent below March '20.

If you're looking to invest in Denver, prepare yourself. Other questions? Let me know if I can help.

@Luis Angel Cruz, Jr. Depends: what are you looking for? Farming leads? Send me a PM and I'll steer you in the right direction!