All Forum Posts by: Craig Curelop

@Carolyn Chupa - Congratulations on going under contract!! I do agree with @Matt M. that your agent should be helping you with this process. Otherwise, they are simply getting paid far more than they deserve. I presume that he or she is and you are just asking for added advice from the community. Here are my responses with deal breakers in bold:

• Install gutters - If there are no gutters at all? This is a must. Can be costly (~$2,000 to fix) and you don't want water pooling around the foundation. 
• Cracks in brick- need to get a structural engineer to come and look -- This usually isn't a big deal. But try to get the seller to have a structural engineer come out to confirm. If they don't agree to getting one out there, it might be worth you doing. $350 for a structural engineer is worth the peace of mind and/or knowing you won't have a $50k+ expense down the line. 
• The foundation is partially visible from areas of the crawlspace- need to have structural engineer look at this -- Same answer as above. 
  
• "Medium cracks" in sewage line -- This is a big problem. Could be an expense up to $10k to excavate and dig up the sewer line. Not to mention, the repair would add little value to the property. I would have the seller fix. 
• Plumbing supply lines consisted of multiple materials to included galvanized pipe and potentially lead pipe - I would have the seller replace these as well. However, if they are serviceable right now, you may have a hard time convincing them. 
• Water heater 20 years old - Try to get them to replace. May have a hard time if it works. - About $1,500 installed. 
• Furnace is 20 years old - Try to get them to replace. May have a hard time if it works. - About $3,000 to $4,000 installed. 
• There is a negative slope at one side of the home that increases the potential for water pooling - This is a pretty easy fix. You can ask for it, but definitely don't think it will be a deal breaker. You just add some landscaping to make the slope positive. 

Hope this helps! 

@Sheronda Nichole Williams - $135k will not get you very far in the Denver metro area. You might be able to pick up a one-bedroom condo in Aurora that is not updated and not in the best area. I would try to find a lender that can help you qualify for a little more! If you can get a signed lease before closing perhaps? 

@Jason M. - If you are looking to house hack. Then I would recommend keeping money reserved for a down payment on the house hack. You won't get a better return doing anything else. 

If you are going for a traditional rental (25% down), your return is going to be much lower. If that is the case, I would pay down the high interest loans first. Especially if this is your first investment. You don't want to be over-leveraged. 

@Jason M. - I use @Linda Weygant and she is great! Really knows her stuff about real estate. 

@Priyaa Kalyanaraman - I moved from San Francisco to Denver in 2017, started investing in real estate and never looked back! Three years and (almost) four properties later in Denver and I am financially independent. 

The process isn't as hard as you think as long as you have the right team of people and are willing to make some sacrifices over the next couple of years. 

@Jason M. - These common rules of thumb do not work here in Denver. These rules only take into account two numbers: price of the property and rent. It does not take into account taxes (lower here), insurance (rare if flood insurance is required), capital expenditures, or repairs & maintenance. 

I find that people who use these rules get stuck in analysis paralysis more than anyone else. Make sure the numbers pencil out after understanding: rents, your mortgage payment, and what repairs & maintenance will be. 

@Caitlin Caldwell - There won't be anyone who argues that a one-car garage is superior to a two-car. However, it really depends on the location and what the other houses in the neighborhood have. If you are the only one with a one-car garage, you will have a hard time selling the house. 

If all of the neighbors have a one-car garage, that is what is common in the neighborhood and shouldn't be an issue. 

@Michael McClearn - I have a few that I can introduce you to. We can chat about them on Thursday! 

Welcome to BiggerPockets @Jason M. - you found the jackpot for real estate investors! I wouldn't doubt that you could find each team member here on BiggerPockets. 

@Patty Nisbet - I think you will be surprised at how much you can afford! We work with a lot of people similar to you. As long as you have an income of ~$50k or more, you should be able to qualify for something in the $400k range and that's really all you need.  

If you are open to the rent by the room strategy, we also work closely with a lender that has a program specifically for this strategy. You are able to use a signed lease to bolster your "Debt-to-income" ratio so that you can afford more.