All Forum Posts by: Eric DeNardo

Finding deals. Takes patience and persistence. 

@Bradley Mair,

Speak to the right lender and you can buy another primary residence for 5% down and turn your existing property into a rental. It depends on what your debt-to-income ratio is and what you can qualify for. If you have a lease in place for the property, you can count that towards the monthly expense, but not always easy when you need a place to stay. 

@Kyle Allen

There's no secret. It's challenging to cash flow in Denver. You have to find a really good underpriced deal. Or be creative with seller financing, subto, Rent-by-the-room, or something else. Otherwise, you're more in an appreciation market where your value comes as prices continue to rise in the metro area. 

Would love to chat more if you have additional questions!

@Daniel Vargas,

I would have you think about a couple things and answer these questions. 

1. Do you have the time to put sweat equity into a property? 

2. Do you have the cash to rehab a property on top of the 20% down payment and closing costs? You should also thinkgholding costs, the longer you rehab, the more expensive it is because you won't have a tenant paying rent. 

Also, think about buying a primary residence and renting out a basement or rooms. You can find something that is livable, but you can upgrade over time while you live there.

@Alex Rozsa,

That's awesome you are saving money in college! I wish I was thinking about that during my time in college. 

Biggerpockets has a simple calculator for rentals that you can start with. Think all the expenses and potential income of the property. Expenses include utilities, maintenance (3-5% of rental income), and capital expenditures (3-5% of rental income), and vacancy. You can then estimate the potential rents using Biggerpockets rental estimator.

If you are willing to buy a SFH and rent of the rooms while you live in one of the rooms. That's going to be the best way to increase your ROI. Especially if you find a house that you can add a bedroom or two. What area are you looking to house hack in?

@George Turner,

Welcome to BP! You may be over thinking about the types of renters available. If it's a strong rental area, as long as you get good tenants to fill the units, that's the key! Most areas of Denver will attract a variety of tenants and you may think you'll get a family, but you could get a young professional without kids.

@Sandra Martin,

I began house hacking and now I'm an agent! My only regret is not starting sooner. I thought I had to buy a home like my parents (20% and on my own). The best place to get started is where you live, you know the market better and areas. You are also physically there to address any issues that come up. Hope this helps!

@Paco Rabi,

It's definitely nice to have existing tenants in place because they will be paying rent as soon as you close! Having said that, typically the rents aren't up to market value and you could be inheriting bad tenants. It's important to look at the rent role and history (if available) to see if your tenants are paying on time. and review their current lease. 

Hey @Usman Khan, 

Here in Denver, CO we have that law and some people will find a co-host who lives there and the co-host obtains the STR license.

Also, there are other surrounding cities and unincorporated county areas that don't have the STR rules and that do just as good as some STRs in Denver city proper.

Hey All,

I hear a lot of investors wanting to use the BRRRR strategy in Denver, but I've heard its a tough market to get make the numbers work. What are your experiences and tips to make the BRRRR method work in Denver?