All Forum Posts by: Chris Sellers

Lauren,

Congratulations on the first place!  Looks great.

I would do option 2.  Will look way better, you should be able to get more rent and will be more maintenance free.  

Good Luck!

Chris

Luana,

Such a smart move, buying a duplex and living in half!  Also great plan to save for the next property.  If I were you, I'd save for the next duplex, keep saving and start shopping for deals.  Pull the trigger on another duplex if you find one right away.   If more time goes by and you save more, buy a triplex, fourplex or 5 unit.  Don't keep waiting and saving if a good deal presents itself and you have the money.

Good Luck!

Chris

Janet,

By break even, I just meant a selling price where you would be indifferent; sell vs hold.  This would be different for different people.  I have always found it useful to calculate this before I start down the selling path.  All depends on your goals.  

If you’re not sure, always better to keep it.  You can change your mind later.

Good Luck,

Chris

Cora,

An Engineer / Co-worker of mine just started his own construction company (left the full time job).  He's a stand up guy and probably isn't covered up yet like most contractors.  Give Kevin a call and see what you think.

https://www.facebook.com/cunninghamcontractor/

Good Luck!

Chris

Ginger,

Congratulations on getting things rolling!  Sounds like a great plan.  I've hit slumps too, usually because I was looking only for my comfort deals, not being innovative.  I've been a roll lately too.  It's fun!

Good Luck!

Chris

Charlotte,

Congratulations on having a child soon!  Good times.

I'd keep looking.  This one is going to be pretty involved and it's out of town.  The numbers are ok, but not so good that I'd sign up for this much risk (rehab costs, zoning).  

Good Luck!

Chris

Geovanni,

Sounds like some good options.  On the surface, getting an extra 2brs for $20k seems like a winner.  You'll need to also define  your monthly revenue and expenses for each to truly compare them.  There's usually a clear winner after you do this.

Good Luck!

Chris

Chris,

Unless you feel sure this area is going to appreciate more than normal, I"d stay away from this one.  Cash flow is pretty tight with some pretty optimistic vacancy and repair estimates.  

You'll be able to find better ones.

Good Luck!

Chris

Janet,

Sounds like a good problem to have.  Your old property has appreciated.

If I were you, I would spy on your local competition to feel comfortable your estimates for market rent and sales price are solid.  Don't forget to factor in costs you'd need to get those numbers (if applicable).  Run your calcs and determine a sales price you consider a break even vs holding.  Everything should be for rent or sale, based on the price, right?

Next, I would raise that rent.  Not sure what the CO law states, but I like giving a good renter some notice before doing this (maybe a few months).  Very good chance you'll lose him and need to fill the vacancy (and pay for the turnover rehab).  

After you have a market renter; decide if you want to list it.  Remember your break even price you determined already and stick to it.  It's easy to get caught up in the excitement and go lower.

Good Luck!

Chris

Dickie,

I'd use the property evaluation calculator on this site.  It'll prompt you to define costs you might otherwise forget like taxes, insurance, hoa, trash, sewer and vacancy.  Leave out too many costs and  your deal looks better than you will actually experience.  After you run the numbers, you can post it here to get opinions from BP members (just don't list the address, someone might snatch it).  

Be sure to factor in your cash flow from the time you close until the rents start rolling in.  You'll want to be able to weather a storm if you have a surprise rehab cost + unexpected tenant move outs.  Also, be sure to get copies of the current leases.  I make my contracts contingent on this.  Sometimes landlords don't even have leases, so they have to implement them during the closing.  Your realtor should be able to guide you too.

Good Luck!

Chris