All Forum Posts by: Dan Guenther

Hey @Adam Gusky - welcome to the community ! 

My first question is will you be renting while investing in an out-of-state market? 

If you were to stay in Denver paying rent of $1200+/month (likely much higher) while cash flowing around $100/month on a $100K property would that make for a good investment? 

There pros and cons with both options. Investing here in CO might have a higher point of entry but you would also be able to learn hands-on how to manage a property. If you could get into a house hack and cut out or eliminate your living expense, you would be able to scale much quicker. Larger metros also typically appreciate at higher rates which is a bonus. 

Another point to consider is the downpayment options for owner-occupied (you must live in the property for at least 12 months) vs non-owner-occupied financing. 

With owner-occupied loans, you can go as low as 3% down compared to non-owner-occupied loans which range from 10%-25% with the average lender requiring 15%-20% down. Also, as a first-time homebuyer, you could qualify for grants and down payment assistance. 

Owner Occupied - $300,000 purchase price with 3% downpayment = $9,000

Non-Owner Occupied Investment loan - $300,000 PP with 20% down = $60,000 

Denver is definitely an expensive market but if you are willing to get creative there are still deals to be had. You might want to consider smaller markets like Greeley where you can still find cash-flowing deals under $400K. 

It's great that you have options though and one strategy does not fit all in the real estate game. Take some time to thoroughly research different strategies before making any decisions. 

Hey @Justin Lee ! 

Let's connect, I have some great contacts here in Denver (contractors, lenders, investors etc.) Happy to help connect you! 

Hey @Lj Talley welcome to the community! 

Everyone else has nailed it on the house hacking side. If you can owner-occupy this will be the lowest barrier of entry for your first deal. 

If owner-occupied doesn't work out with your current life situation there are a handful of investment loan products out there and every lender will have different requirements to meet. While 20% down is typically the standard, I have done deals with as little as 10% down. 

Another option as @Julien Jeannot mentioned is Subject-to. If you haven't already, I'd recommend checking out Pace Morbys YouTube channel. You can get a YouTube University Degree in creative finance for FREE. 

Good luck on the journey and reach out if you want to talk more. 

Hey @Grant F. love the idea! I can't make it tonight but will try to get up there for the next one. 

Not to steal your show here, but I've been hosting a meetup in Longmont for the last few years if you ever want to make it down that way! It's the last Thursday of every month at Oskar Blues Homemade Liquids and Solids. 

Hey @Sam Jost welcome to Denver and the BP community! 

There is a lot to unpack here and more to cover than one post can do justice for. Denver proper is very tough on the STR front however there are still plenty of sub-markets (within 30 mins of downtown Denver) that are still great options for the STR route. Reach out and we can chat a bit more about the pros/cons of the Denver market.

@James Chambers - welcome to the community! 

There are a few good Meetups that I know of in San Antonio, this is going to be a great spot to start getting involved with the local community there. I've also got a few connections there if you'd like to connect feel free to reach out. 

Hey @Jon Mitchell - welcome to the BP community! 

If you are interested in the Colorado market let me know, I've got a great team of contractors here. 

 Hey @Patryk Skoczen - welcome to the community! 

While you may be lacking in the capital side, you have at least two other points going for you, time and some experience in the flipping process. Get yourself out there to network with others. You'd be amazed at the kindness of some experienced investors in their willingness to teach new investors. Find some local meetups and come into them with the confidence and mindset that you are there to help others. You'll learn quickly how far that will go. 

Reach out if you want to talk more about ways you can get into the game from where you're at now. 

Best of luck! 

@Jordan Castro - welcome to the community! It sounds like you're in a great spot with the job flexibility. Regardless of where you decide to get that first deal, house hacking is ideal for getting started. 

What are some hobbies you have or places you always wanted to visit? Your return on investment (ROI) will differ depending on the market you choose. In expensive markets like Denver, your ROI the first few years will likely be lower than less expensive markets that you can find in the mid-west. Other factors to consider though are the overall quality of life in the market you will be living in for at least a year along with differences in appreciation, property taxes, landlord laws, etc. within that market.

You have lots of options! Let me know if you are curious about the market here in Colorado and the reasons why people decide to make it home :)

Hey @Jt Marting - welcome to the community! Congrats on getting started so young, you've got a huge headstart. 

I'll be working on a new development project here in Northern Colorado in the coming months. It might not be for you but I'd be happy to talk a bit more and see if we might be able to work together down the road.