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All Forum Posts by: Reed W.

Reed W. has started 2 posts and replied 3 times.

Post: What Would You Do With $1MM in Denver This Winter?

Reed W.Posted
  • Real Estate Investor
  • Posts 16
  • Votes 0

Greetings! New to this forum and looking for some suggestions.

I currently live downtown Denver in an apartment I own. There’s roughly $50k left on the mortgage and could easily be paid off (worth roughly $250k). Plan is to hold on to the apartment long term and rent it out. Getting married in May- combined income hovers around $250k (if that matters).

In addition to a major repiping project, we’ve outgrown the apartment and are ready to make a move come early next year. It’s beyond time.

The market isn’t great right now, but we’ve been approached by a family friend with a proposition. She has a lot of cash off hand, and would like to give us an Intra-family loan for a house which runs at about 2.3%. If we can find the right investment, we could get up to $1MM to leverage. It’s lower cost and lower risk than any sort of traditional financing.

There are a lot of approaches to take with this much money, but whatever approach we decide has to incorporate a liveable space for the wife and I. We’d like to stay in Denver proper, which limits our options. This would also be a long term property to include in our small portfolio, so we’d be here for a few years max before renting it out. In other words, we’re trying to figure out a hybrid living space that we can add some investment opportunities to.

Here are the options I’ve outlined:

  1. Traditional duplex
  2. SFH with a basement to convert to a small lower apartment
  3. SFH with correct zoning for an ADU (Alternative Dwelling Unit- more reading here:
  4. Pre-purchase two townhomes from a developer before they go on the market

What would you do? Are these options actually feasible in Denver proper with that amount of money?

Thanks for the advice!

Your statement about "You will probably have to pay more than a cash buyer" is exactly what I am looking into....how much more? How can I get around this?

Right now I am looking into my second investment property.

Ideally, I wanted to obtain an investor loan with a low rate as I know buyers prefer cash.

Unfortunately, it didn't look like I would be able to obtain financing through this route- I'm only 26 and while I have great credit, I don't have quite enough. So I obtained approval for another 30 year fixed.

Deals are really hard to come by these days, especially in Denver. So, do I stand a chance on getting a good deal with a 30-year? Should I re-group and look into other ways of obtaining financing?