All Forum Posts by: Jared Bandel

Two off market duplexes in Olde Town Arvada currently on the same lot, but could be split before purchase if desired.

I'm working on a new development on the vacant land south of these as well as renovating the SFR next door. The previous owner didn't want to split the land, but I'm not in the financial position to hang onto these and move forward with the development project.

All units are currently rented ($1,500, $1,400, $1,300, and $1,500/month).

I can pay a commission.

Will likely hit the market in mid-January.

Please reach out for additional pictures, the inspection report, and with any questions you have.

Jared Bandel

303-263-1739

[email protected]

Quote from @Bob Stevens:

Quote from @Zach Jones:

 Yes save for your DP or partner with someone, really not sure what else to say,  

 It's not like I've got nothing, I'm talking a high 700s credit score (with decent history), great income and 150/200k down.. obviously a DP is needed, I'm just wondering if people are really coming to the table with half a million or how to get into the club so to speak with what I have.

 Yes they are coming to the table with 20% or more, which is what is required Find deals for those doing them You will earn ad fee. Learn save then go on your own, 

All the best 

 Bob, what is the "average" down payment for an apartment complex? Several factors to consider, I know, but just curious what should be expected.

3.5 years is a great turnaround time - good work Zach!

Andy Meyer with Frascona in Boulder has been wonderful to work with. I'm currently searching for a CPA so I can't help much there, but I know Andy's real estate expertise has been very helpful for me.

PM'ed with my recommendation!

Should we start a new thread for it next time or would we be told to search the forums for previous posts regarding the same information in that case?

@Leah Brooke @Bryan Robbins @Lizzie Carver Here's the map where you can look up the Home Possible income limits for the Denver area:
https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible-eligibility-map

As Chris mentioned, FHA is also a great option, but I know when I ran the numbers from Home Possible vs. FHA that my payments were going to be significantly less going the Home Possible route.

Good luck! Keep us posted on what you end up doing.

I was able to buy a single family with 5% down, but that was the back up plan after not being able to compete with people buying duplexes/tris/quads with cash a few years back. My lender was going to let me do 5% on all of the duplexes I made offers on, but I'm not sure if they still would or not. They were absolutely great though, walking me through each step and helping me with numbers from what I expected in rent for each of the places I told them I had made an offer on. Lizzie is right - check out local banks in the area around Denver and the Greenwood Village areas and tell them you are hoping to use the Home Possible 5% down conventional product!

It sounds like you have a lot of home repair experience and you're very young compared to most real estate investors, so that's great news! If I were you, I might look for a job that pays more right now with the experience you have. As others have mentioned, there are likely contractors/subs around Denver that need a lot of help. Learn a trade that's in high demand, start to save a litte more money, and then try to find a house that you can make a low down payment on (FHA at 3.5%, home possible at 5%, or even a 203k loan to get the rehab costs financed) and fix it up while you live there. If you could save up some more money, making a small down payment is a great way to get into your first house, but most of the low down payment options are going to be for owner-occupied places. I think you could make a nice amount of money if you bought a place that needed some work and did that at night/on weekends. Then, either sell it, or do the BRRRR method and move onto the next property. Having that home repair experience is a huge benefit, and not being 30k in debt like most 22-23 year olds are is going to be awesome for you. You should easily be able to get to 30k in equity in your first place by the time you're 22-23. Study the neighborhood you want to be in, find a realtor that works hard for you and dive in head first!

@Shawn O'Gorman It's never too early! I bought my first property when I was 25 and am so glad I did. Learn as much as you possibly can, decide what you want your first property to be (house hack? development? flip?), figure out how to be successful at that type of investment, and dive in. There are lots of options for low down payments, and lots of opportunities to make great decisions if you don't let your feet get cold and aren't afraid of working hard.

Good luck! I bet a few years from now you'll be on here giving the rest of us your newly-acquired advice.

Hi @David Wieten, I'm working on my first 5 unit build right now. There was a huge learning curve to get started, but you can get an idea of if it would be worth it for you if you can estimate some of the costs. Big ones to consider:

1) Land, and what can be built on the land. Don't buy a piece of land that's zoned for a single family house and then try to build 10 units on it, or even two.

2) Build cost

3) Are you going to sell or rent the units when they're done? You'll need a construction loan to build, and you'll have to convert that to a rental property loan if you want to rent them. I'm selling mine, so when construction is complete and the loan is paid back, the remainder goes into my pocket.

4) Design and entitlement fees. You'll need an architect, structural engineer, MEP engineer, and to be able to get the project approved by your city. I've spent about $75k on all of that so far, and I'm not even done yet. 

Feel free to ask any more specific questions you have! Hope that helps a bit.

@Chris Maurice - I had the same problem when I was looking for somewhere to house hack a few years back. US Bank wouldn't let me get a 5% down for a duplex, but then I was told to shop around with the smaller banks in my area. I found a place called Denver Lending, and they were so helpful and amazing. My interest rate ended up being 3.625% instead of what US Bank would have given me on a single family (3.5%), but I was able to do the 5% down Home Possible loan mentioned in an earlier comment on your post. I'm still paying PMI, but if I refinanced I might be able to get out of it. I bought the house to scrape, otherwise I would be seriously considering doing that right now.

You could search for "City, State mortgage lenders" on Google and email a few of them to see if they're willing to do 5% down owner occupied for you. I had to inform Denver Lending of the Home Possible 5% down "product" and they were able to make it work for me.