All Forum Posts by: Steven Koch

New STR rules in Colorado Springs are now in effect. You are allowed to do a new short term rental in an R2 zoning (this property is R2) as long as it's not within 500 feet of an existing short term rental (I'd call the city to get this info). From the lot size, it likely doesn't have the set backs that would be required to add another unit but you might consider either converting the garage or building onto the garage to add an additional unit. Obviously you'd have to run the numbers after construction costs to see if it all makes sense but homes with additional units/cottages are in high demand.

Great creative idea, thank you.

0 Votes

Originally posted by @Ola Dantis:

@Steven Koch

Steven, deal or no deal?

I'd say no deal, FINAL ANSWER 👍

Thank you.

0 Votes

Originally posted by @Meir Greenblatt:

@Steven Koch

The insurance seems a bit high but I'm not familiar with that area, according to trulia it a 1889 house so you may. Consider putting aside 10% for capex and 10% for maintenance. Brandon Turner all the time said that he likes to put a 2nd bathroom in a house more then 1000sq, but you need to make sure the plumbing and permits allow it.

You can also do Airbnb, but Colorado has strict rules you need to follow so you should know what they are ahead of time.

In general it's under the 1% rule which means it's probably not a good deal unless you speculate on appreciation.

I'm sure you can find a different deal, and if not then maybe seating on the sidelines is okay.

Thank you.

0 Votes

View report

*This link comes directly from our calculators, based on information input by the member who posted.

0 Votes

Originally posted by @Brian Beck:

Hi @Steven Koch

I don't know the area at all but the numbers you provided would indicate this is likely a loosing proposition as a rental. It looks like you are buying it at fair market value so you aren't getting much value in the purchase and you also you will also loose money monthly (the mortgage payment alone is almost your entire months rent). If you do have specific questions regarding the calculations I'd be happy to try and help.

Brian

Hey Brian,

I am going to hold off for a bit until I clearly understand some more of the basic principles here. Thank you for chiming in...

Best,

Steven

0 Votes

Richie,

Thanks for your time and the extent of thought you put into your response. I admire your creative thought pattern here, ultimately this is what I was shooting with the matrix of creativity on a deal. I see now there are many angles of strategies I could pursue. These creative ideas you wrote about will for sure be a keep saver for future endeavours to come. Saving what you wrote in a word doc now.

Many Thanks,

0 Votes

Originally posted by @Jeff Halverson:

@Steven Koch

I would look at ways to get out of the investment as it doesn’t seem viable. If I insistent on keeping the property, find value add opportunities to increase rental income. Potentially rent out land?

Thanks Jeff,

I ran the numbers and added a room, even having 3 bedrooms, fully paid off, the ROI is still very low. The next step I was thinking is that he could sell off portions on the land for development and if that's even possible. My last resort was to tell him to get out of it, but I am holding back until I make the right decision to tell him. I myself am new to analyzing properties. I need to exhaust all avenues of creative thinking first and maybe show him by teaching him and pointing him in the right direction, so he comes to his own conclusion that it is a bad deal and then find a good deal. At this point in the game for him, it's a liability and not a asset that creates passive income or positive cash flow.

0 Votes

Originally posted by @Jermaine Chad Ingram:

How many beds and baths?

Thanks Jermaine,

2 beds 2 baths on 20 Acres, with 2 Garages.

0 Votes

Originally posted by @Jaleel Phillips:

Originally posted by @Steven Koch:

Originally posted by @Jaleel Phillips:

Originally posted by @Steven Koch:

Originally posted by @Jaleel Phillips:

Originally posted by @Steven Koch:

@Jaleel Phillips

I am sure there will be repairs, but I was thinking bottom line scenario. Yes indeed, the cash flow is way to low, but I was wondering how a person could be creative and make it a good deal. "When life gives you lemons, make lemonade".

How many layers or what layers could make this a good deal?

Yes of course being creative works! What did you have in mind? I just think with $50,000 you can find 2-3 more deals somewhere else that would cash flow just fine though. I'd love to hear what you had in mind though.

I am just trying to take a not so good deal and trying different angles to squeeze all out of it one possibly could. I am just looking for other people's' creative angles in this not so good deal. What numbers could I change to make this deal even remotely work? Yes I could move on and find a better deal...

1) Adding another room?

2) Putting more down?

3) Flipping the house?

4) Lowering the expenses?

5) Ect....

I would look for a cheaper deal. One you'd have to buy under market value and rehab it. Please check out the BRRRR method.

So, the only way is to look for a place under market value? Is there a program that scans all listing to find those under market deals instead of manually searching?

Thanks I will look into BRRR next. Just getting my feet wet here and appreciate the feedback.

Typically, you will have to just search the MLS (Zillow, Trulia, Redfin, etc) and look for properties that are in bad condition. Do you already own a property?

Thanks, properties in bad condition.

0 Votes

Originally posted by @Jaleel Phillips:

Originally posted by @Steven Koch:

Originally posted by @Jaleel Phillips:

Originally posted by @Steven Koch:

@Jaleel Phillips

How many layers or what layers could make this a good deal?

1) Adding another room?

2) Putting more down?

3) Flipping the house?

4) Lowering the expenses?

5) Ect....

I would look for a cheaper deal. One you'd have to buy under market value and rehab it. Please check out the BRRRR method.

So, the only way is to look for a place under market value? Is there a program that scans all listing to find those under market deals instead of manually searching?

Thanks I will look into BRRR next. Just getting my feet wet here and appreciate the feedback.

0 Votes

All Forum Posts by: Steven Koch

Steven Koch has started 5 posts and replied 20 times.

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal