All Forum Posts by: Ed Ibañez

Hey Ryan, 

I am an investor agent as well. I work with similar cliental. I take a different approach with my investor clients, we look at zoning. I am a zoning expert and have rezoned hundreds of properties and I work with clients in rezoning to add units or just navigate the zoning/zoning code. My other clients take the approach of negative cash flow to refinance to a lower rate. 

Hey @Justin Crump, Happy to connect. I am an investor/real estate agent in the Denver Metro. My expertise is zoning (rezoning and navigating zoning codes in multiple jurisdictions/states). Let me know if you would like to connect. 

Calling all rental Arbitragers!

We have a home that we need to rent asap because we are moving. The home is a 4 bedroom 3 bath with an additional attached Guest house/suite with private entrance, 1 bedroom, 1 bath, and separate kitchen/living space. The guest house is fully furnished as we have been Airbnb’ing it for the last year. We currently make $2,500 in a good month and around $2,000 slower months with an average of ~60-70% occupancy. The home itself has a separate in-law suite in the basement with a separate kitchen and living space. Laundry room is in the basement, AND there is a hook up for a stackable laundry machine upstairs. The guest house has its own laundry as well. Lots of opportunity to do different strategies to maximize rental income.. could Airbnb l/short term or mid term rent the whole house and live in the small guest suite, or somehow rent both. We are looking to rent it for at least a year lease. Please private message me with any questions/interest

and here are some photos.

If you do decided to do the 203k loan, do properly vet the HUD consultant. I had to fire the HUD consultant when I used a 203k loan, they were so bad a following directions and administrating draws. Let me know if you want a recommendation.

Welcome @Clark Thomas Tyrrell, 

There is a lot of great stuff on this thread. I just wanted to know if you are considering a value add property? For example, if you are set on a quadplex, you may want to consider Denver and the new Denver Zoning Code update that is happening now. It is called the ADUs in Denver project, if approved, it would allow ADUs on Small Multifamily. So, a quadplex would allow a potential ADU for each unit for a total of 8 units. Just food for thought. You can also do a combination of the what has been considered above. Just be careful with STR, Denver and Denver Metro cities are particular on the requirements (primary residence is required). Most of them are.

- Ed 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $459,000
Cash invested: $80,000
Sale price: $830,850

Purchased a Single Family Home and converted the property into three units.

What made you interested in investing in this type of deal?

Understanding Zoning and purchasing a property in a multifamily zone district to add the units.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

FHA 203k Loan

How did you add value to the deal?

Added two additional units

What was the outcome?

See photos for final product.

Lessons learned? Challenges?

203k agent was lazy and difficult to work with. Definitely research the 203 k agent before hand.

Welcome Candice,

I agree with Ben's comments. It's also important to understand what your long term goals are in regards to STR and zoning. Denver's STR are strict depending on the use (ADU, Single family, duplex, etc.).

There is a lot of changing happening in North West Denver right now. Sunnyside residents are working on a conversation overlay to prevent the modern new builds you see in the area and preserve the bungalow architecture. There is also a small area plan happening in the Sunnyside, Highland, Jeff Park and Chaffee Park. All this can potentially (nothing is guarantee) impact you in a good or bad way depending on what happens and what your end goals are. 

Hope this helps,

Ed

Dear BP Community, 

I want to refinance my property but I currently have a mechanical lien from a contractor. I had a contractor that did not pull permits and did not do work according to the contract we had. I fired them and they put a lien on the property for a ridiculous amount that makes no sense. I am in the process of arbitration with the contractor to remove the liens but given COVID-19 the hearing has been pushed back. 

Is it possible to refinance with a mechanical lien? If so, do you have any recommendations for Colorado? The original loan was a FHA 203k loan.

Thanks, 
Ed

Would you recommend refinancing for the better interest rate? I know it will appraise for more than my current loan but the reason I ask is because the interest rates are low and I can get close to 2% lower than what I currently have.  Just wondering? 

Thanks for the input so far. 

@Jeff Brower When did you refinance? How many months after closing? How was that process? 

My wife and I just closed on our first house hack using a FHA 203K Loan. We want to refinance out of our high interest rate of 5.75%.

Thanks, Ed.