All Forum Posts by: Jeremy Clarke

Daniel Walker , i totally get where you are coming from on this topic. Living in Fort Collins, the way the market has appreciated over the last 3 years has made people do some things they might not otherwise and ask new questions because the market has compressed buying so much and giving homeowners a new found confidence. While I do agree with most on here that it would be a bad idea to take on negative cash flow every month, i disagree that town homes are a bad investment option. In fact, I feel in a lot of ways they are a better investment option than SFHs in a city you live in because you can manage it yourself and "save" money on property management. I am a Realtor here in town for Velocity Real Estate and Investments and I own a couple of rentals myself. Did you know that for single family homes, average sales price grew 6.8% YoY vs LY but for Condos/ town-homes the average price grew 27.8% vs LY. My company specializes in investment opportunities. If I can help you in anyway, let me know. Good luck!

Okay not too bad. Don't get too caught up in the cap rate calculation. It is a good measuring stick to use as a benchmark. Just be sure you are prudent to continue to factor in potential maintenance, vacancy, increase in taxes, etc. Sounds like you are pretty prudent already. 

I agree with @Bob Vollmer & @Mike D. on rents flattening. But that may be 1,2 or more years out. Take advantage of what they are today, get a tenant in there locked in a lease for 1-2 years and reap the benefits. While rents might flatten, the property is likely to continue to appreciate. The simply can't build as fast as the demand is happening in Northern Colorado. Specifically in Fort Collins, there isn't much more space. If it were me, i'd get it while i still can. Especially if the property cash flows.

Hey Levi Bjork , congrats on being able to invest in the Fort Collins market. I think that is a great strategy. Have you calculated your cap rate? I can't do that for you without knowing your gross rent, but I'd guess it would be over 4% based on the information you gave. I have a property that does quite well $800 net a month that a bought when the market wasn't quite as hot and another that I bought a couple years back that I only make about $150 per month on. Lucky for me, it all evens out. We are fortunate in Fort Collins to have the appreciation as well. Hope that helps, if you need help finding a Realtor in the area and aren't already working with one, I'd be happy to help.

Thank you Deanna McCormick

Thanks Greg S. , I appreciate your perspective. I wanted to hear from people who weren't emotionally invested to give good advice. Thank you.

Ian Rosado great idea. There is little to no chance my mom could live in Colorado. I took her to San Diego for Christmas and it was in the 40's and she couldn't handle the cold! Sounds funny, but she is warm blooded for sure. I appreciate your words of wisdom, that is probably the right way to look at it.

Thanks Linda Weygant , I misunderstood that law. Thank you for the explanation!

Christopher Phillips the house is worth about $100k.

Linda Weygant , my understanding of that law was that you had to live in it 2 of the last 5 years. It's been almost 30 so i'd think it wouldn't apply, am I wrong?