All Forum Posts by: Dan Guenther

@Steven Nieves - welcome to the community! 

There are a lot of different factors involved here to consider. I'm not sure where you are interested in investing but here in Denver it looks like this. 

1) Location: What is the demand for STR in the target location? Is it close to frequently visited spots (hospitals, national parks, stadiums, convention centers etc.).

2) STR Regulation: Is it even legal to run as STR in the desired location? Can you run the STR as non-owner occupied aka when you move onto your next house hack can you still run the place as STR. A lot of areas restrict STR to strictly owner occupied properties meaning you have to live there to run it. This is a big factor to consider when thinking long term goals.

3) Property type: Here in Colorado we have a lot of single-family properties that can be easily split into two units making a non-conforming duplex. This is a great way to start house hacking as you can still have some privacy while bringing in income from a separate unit. This will also allow for a low-down payment option to get started (3%-5% down for owner-occupied loans). 

Reach out if you want to dig deeper into all of this!

Hey @Bella Batal - Welcome to the community! I'm very interested in hearing more about this one. I'll message you! 

Hey @Grant Otting, welcome to the community! 

For your situation, I'd try to change your focus away from CoC ROI and focus more on Networth Return On Investment (NWROI). This metric is really helpful when looking at house hacking, especially for your first deal. House hacking and real estate investing in general come with a lot more benefits than just cash flow. With NWROI you take into consideration more than just the return on the cash you invested. These include tax savings, depreciation savings, loan pay down (increasing equity), cash flow, appreciation, and one of the most important for house hackers is the amount you will save yearly by paying reduced or no rent. When you look at this bigger picture I think you'll find that the returns on your first house hack are going to be much greater than what you are currently looking at.

Best of luck to you!

Hey @Jason R. Besanceney!

Congratulations on your recent college graduation and getting ready for your first house hack! House hacking can be a great way to start your real estate journey, especially in an expensive market like California. Here are a few of my thoughts/suggestions.

Sourcing Deals: Consider networking with other investors and real estate professionals in your area. Attend local real estate meetups and events, join online forums, and explore social media groups related to real estate investing. Additionally, you can work closely with your real estate agent to keep an eye on the market and be notified of potential deals.

If you can get good at finding off-market deals, you can use this skill to not only find good deals for yourself but also have the potential for extra income via wholesaling. Popular strategies for finding off-market deals include sending out mailers, driving for dollars (look for beat-up houses and then skip trace the number or door knock), and using sites like Propstream.com to get lists of properties that you can cold call.

Picking Markets: When selecting a market for your next property, look for areas with potential for growth and strong rental demand. Factors to consider include job opportunities, population growth, local amenities, school ratings (if targeting families), crime rates, and overall economic stability. You can gather data from websites like Zillow, Trulia, Redfin, and local government sources.

Making Extra Cash: Since you work long hours, finding additional sources of income might be challenging. If you do have spare time on the weekend though, you might consider some of the strategies I mentioned above for finding off-market deals. If you can find off-market deals you will have no shortage of investors that would be willing to pay you a "finders fee" for a great deal. This can be anywhere from a few $1000 up to $40K+ for a great deal.

Best of luck on your journey, and I hope you find success in your first house hack and future investment endeavors!

Hey there BP community! Just a friendly reminder that our next real estate investor meetup will be this Thursday 7/27/23 @ Oskar Blues Homemade Liquids & Solids, 1555 Hover St, Longmont, CO 80501

Be sure to reach out with any questions you might have and I hope to see some of you there!

Dan 

Hey @Kelly Sparks , welcome to the BP community! 

I'm not in Flordia, but I have been running a REI Meetup in Longmont, CO (Northern Colorado) for the past two years now. I'd be happy to talk with you more about getting up and running. Reach out if you want to get on a quick call.

Best of luck! 

@Harita Konjeti

Do you have a lease in place? 

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.