All Forum Posts by: David Williams

Awesome plan Leonel! Househacking is the best way to get into real estate investing in my opinion! Get yourself an excellent agent who specializes in househacking, BP is a great place to find one in your area. Then find a good lender who works from a house hacking / investing standpoint. Find an excellent property that the numbers make sense on using BP calculators.  Take professional photos and screen tenants carefully. You're going to live with these people, so set high standards and stick to them when screening. Then set ground rules with tenants and be a fair but human landlord and boom! You're investing.

Bumps in the road my friend. Do you think the properties will be worth more money in 5, 10 years? Will rents go up as well? If you feel like that's the case and you can find a way to handle these bumps in the road, then ride it out!

Great news! Thanks for sharing @James Carlson. Wheat ridge will be a great location on the west side of town for STRs. I love the light rail aspect in both Arvada and Littleton, but as you mentioned Wheat Ridge neighbors the Highlands, Berkeley and Edgewater, not to mention its own commercial district on 38th. @William Beck there are plenty of non regulated homes without HOA in desirable areas of Wheat Ridge.

Thank you all for the good info, very helpful. I will absolutely pass along. Appreciate it! I'll post what they end up doing.

I have some family members here in Denver in a bit of a hellhole of a rental situation. They live in the lower level of an up/down 4-plex. The residents above are chronically violating their lease and a true nuisance to live below. They are loud at all hours, smoke indoors, do not pick up dog poop, use marijuana and other drugs in home. My family members have attempted to speak directly with upstairs tenants to resolve issues and are only met with passive aggressiveness and denials. The property managers have been contacted, multiple complaints filed and there is no resolution. Property management company has a history of poorly management.  Situation has gotten to the point its no longer habitable to live below with noise, smoke and upstairs tenants controlling temperatures and keeping lower unit cold in winter months. They have attempted to work out an exit with the property manager, but are only being met with resistance. There is $500 charge to break lease and potential loss of security deposit. They are looking for a way out, is this a time to involve an attorney or are attorney charges likely to exceed breaking the lease.  I have single family units with great tenants and personally have not ran into issues of this nature. Any advice would be greatly appreciated! I

@Andrew Freed I’m in Denver and feel your pain! There are multiple ways to strengthen your offer as many have pointed out so I’ll share a slightly different perspective. Know your numbers, stick to them, know what makes a property a good buy. Do your best to keep emotion out of purchase. Develop thick skin and patience. Stay persistent and keep making offers that are strong but work for you and you will find a place! Godspeed my friend!

@Brad Klock good problems to have at least! Sounds like you’re on a great real estate path. My thought would be to take a step back and analyze what your overall long term goal is. And I mean bigger than doors or cash. What do you want life to look like in 20 years, what’s your ideal day at that time. Then work back from there. Then if rentals gets you there continue down that path, or if the profit now helps get you there then sell away! I’ve found it easier to make decisions now when the end goal is clear!

@Umang Rajyaguru welcome to the community! I like to use a combination of 3 tools to set a rental price. I run the analysis with the BP calculator, I check recent rental rates on rentometer (even the free analysis can help know you’re in the ballpark) then I check wherever most places for rent are listed in your area (in my area it’s primarily Zillow and fb marketplace) to know exactly what would be tenants other options are at that time. That will get you pretty dialed in on price point! Biggest advice is taking action and not over analyzing! Good luck!!

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $446,000
Cash invested: $90,000

Assisted family invest in 2 bedroom 1 bath cash flowing single family home in amazing Platte Park Neighborhood of Denver.

Investment Info:

Single-family residence buy & hold investment in Arvada.

Purchase price: $307,000
Cash invested: $50,000

Originally bought this house as a primary residence. We stumbled into househacking by renting out basement to traveling physical therapy students, we then started listening to BiggerPockets and educated ourselves on all things real estate investing and got motivated to change our lives! We completed cosmetic renovations (shown in pics) and now rent this house for $500 true cashflow every month! Our househacking allowed us to save for the next down payment on our next investment property!

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

Honestly we we're just looking for a house for ourselves in a good appreciating and enjoyable place to live.

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

Found on MLS after a couple months of good patience and sticking to our numbers and must haves. New our numbers and despite low listing price, knew what the real value in house was. We offered 40k over asking, beat out 13 offers, still appraisal came in 3k over our offer, thus earning us instant equity!

How did you finance this deal?

5% down. Conventional.

How did you add value to the deal?

Cosmetic renovations to all surfaces. New roof.

What was the outcome?

Househacking helped us save for the downpayment on our next investment property. We departed this primary residence and now rent the home for $800/mp more than mortgage, true cashflow about $500/mo.

Lessons learned? Challenges?

Know your market, know your must haves, and know your budget. Then work an agent that helps you know good value no matter the listing price or market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes worked with excellent lender Hunter Combs and agent Jameson Cappelli