All Forum Posts by: Elena Jobson

I would recommend calling a local title company and asking them to run an O and E (ownership and encumbrance report) this will cost you 5 bucks but it will show any liens and encumbrances against the property, how title is vested etc.

I would be very careful using an online notary, I am not sure what Title Company Mike used but my company would absolutely not accept a document notarized by an online notary. If you're out of the country you would be required to go to the US embassy. However since this document is not for sale therefore not going through a title company, they may be less strict.

If New York is the same as Colorado the water bill is tied to the property so yes they can lien for nonpayment. It differs by state but It sounds like that's the case. You should go after your tenant but ultimately it is your responsibility.

I have to agree, if you didn't sign a "right to buy" agreement (that is what it's called in Colorado anyhow), I do not think you're obligated to use this agent.

FHA loans are designed for your primary residence only. If you were only staying there 2 days a week, they would consider that a second home not a primary residence. Even if you lived there 4 days a week I still do not think they would allow it. Especially because you just refinanced your current home as your principle residence. You certainly don't want to commit mortgage fraud so be careful with all of that!

You may be able to get an FHA loan I don't think they let you do it on a multi family larger than a duplex. I could very well be wrong about that, so look into it. I personally am not a fan of FHA loans and would recommend going conventional if you can.

I say HOLD unless you're planning to take the money and run, in other words move to another state LOL. The Denver market is a catch 22: it's a seller's market so you can making a killing BUT if you have to buy another property, then you're setting yourself up for a big headache in this market. I sold my condo and bought a house and I deeply regret it, I should have held onto my low mortgage and I could have cash flowed, now I'm struggling, because I sold, and in doing so, I backed myself into a corner: I needed to find a place quickly and bought a place that I do not like and can't really afford. You will likely be able to keep raising rents a couple of hundred dollars per month every year going forward if Denver continues to grow as it is. You have a great situation where you're at, I would personally not sell. You'll have your mortgage paid off eventually and be cash flowing positive, you have kind of a dream situation, you can't rent a place in lo high for less than 1500 and that would be on the cheap end, keep your place and know that I am jealous haha. Even though all of Denver is desirable, that's one of the MOST desirable spots in the whole entire city. You said it yourself, you love the area, can walk to work, and you're only paying $700. I just don't want you to be unhappy and end up in the rat race competing with all of they crazy buyers. Almost every single contract I see has an appraisal short fall clause for 10K above appraisal, people are getting in bidding wars over properties, it's just nuts... That's great as a seller, but as a buyer, do you want to compete with that?

THAT is the million dollar question. I've seen a lot of people post similar questions and there isn't really a clear cut answer. It all depends on what you're looking for and what is most important to you. I WISH someone would just tell me the best market to invest but although this site is designed to help all investors, many people are tight lipped when it comes to their markets because they don't want to blow up their spot. When it comes to cash flow, it seems the Midwest markets having the highest return, places like Indy and Cleveland for example have high cash flow. BUT do you really want to live in Cleveland? Probably not. ALSO although they may cash flow, the properties don't appreciate very much. I've also heard that the Chicago suburbs cash flow well. As far as Colorado goes, I would certainly stay away from Denver. Even if you find a smoking deal, it's still hard to cash flow at this rate. Even Fort Collins is getting to be very expensive. Colorado Springs will likely have better cash flow that Fort Collins and definitely Denver BUT the prices are still relatively high AND and you're not going to cash flow anywhere near what you would in the Midwest markets. I for one do not recommend Colorado as a cash flow market, being from Colorado born and raised and working in the industry. The market is crazy competitive. You can throw MLS out the window, for one. I personally am trying to get out of Colorado, I see it as a better opportunity for a flip investor than a hold investor. There are People who say to invest here because of how quickly the home prices are rising, that seems very speculative to me. I believe things will at least plateau in the next 2 years.

I am surprised you don't already have a title company working on your file? Typically that's how it's done as the buyer and buyer's lender usually want title insurance. It may be different in Virginia as I think it's an attorney state? Whereas California is an escrow state and Colorado is a table funding state, each state differs slightly in how they conduct business. I personally recommend using First American or Fidelity. Why? Because they are the 2 largest title companies in the US. Many smaller title companies use one of these 2 companies to do their underwriting. I work for First American in Denver. What you are referring to is what we call in the business a "Mail-out." When I have mail-outs, these are the options I give my clients, whoever you work with should be able to give you similar options: 1. If there is a first American title in the area I can see if they will conduct the closing on my behalf 2. I will send a notary to your home or office so you can sign when it's convenient for you, they will take care of getting the documents back to me. 3. I email you the documents, you print them off, sign the ones that do not need to be notarized on your own time and bring the rest of the documents to a bank to sign in front of a notary. I provide you with the prepaid overnight label to get the docs back to me. This is my favorite option as it is less hassle, but it's all up to the individual. Some people need a little bit more hand holding than others and I accommodate whatever works best for them. ALSO note that some title companies and attorney offices may not allow the last option because they require an "approved" notary to notarize you.

I would hold off on buying if you're not certain you want to stay in Denver long term. The market is hot and it's a tough time to be a buyer, very competitive. I do also believe that the appreciation is slowing a bit. BUT If you can find a DEAL, do a live and flip, and sell it in a year or 2, I think that would be the best way to go, if you are determined to buy here! It's hard to cash flow on buy and holds in the Denver market, even if you DO find a deal. Keep in mind if you sell the home in less than 2 years, you'll have to pay capital gains tax most likely. I would consider waiting until you move to San Diego and doing the live and flip there, as it's another market that is hard to cash flow on buy and holds. Or just live there for a while and build equity. I hope this helps! Please feel free to reach out to me.