All Forum Posts by: John D.

What would you pay for the following?

contract for HOA property management of one association- Gross 22k annual, plus free caretaker unit which is a 14k annual value.

Really no expenses to speak of.

Thanks!

It is a 5-10 minute drive to town, and yes you would park at the big lots  for the gondola.   We are on the bus route should you want a night on the town.

4200 square feet

890k Purchase Price

20k in immediate exterior renovations, painting and bringing the home up to rental standards.

And like I said, lock off the basement, build a 500 square foot lock off in the attic and the home becomes a an apartment.   Now 6 months later I'm confident I could list it for 1.2 million but plan to hold for a decade.

 Well Sir,  I've always said I retired at the age of 21 when I moved up to Breckenridge.   But after a decade+ of shoveling snow in one capacity or another, I know I would rather be by the beach when I'm 60.    Summer's are great though!   

For anyone looking to get paid to own a vacation home feel free to read on.

I've lived and skied in Breckenridge, Colorado for the past 12 years. I work in property management and manage 2 large multi-family properties. A few years ago, I bought my first investment property - a condo in Breckenridge. The condo turned out to be a great investment, and after a few years, I was ready to make a bigger and better investment.

I sought the advice from my friend and realtor, @Matt M.   He is always looking for investment opportunities and ways to help others make money. We began looking for investment properties in Denver and Summit County. I really wanted to find a vacation home, and after searching, we realized the Denver market was too tight for the kind of investment I was looking to make. After running multiple scenarios and discussing my end-goals for the investment, we shifted our focus to a vacation home in Breckenridge that could sleep at least 12 people (the more people a home can sleep, the more money nightly rent your can charge). Matt assured me this strategy would give me the most return on my money, and it has.

It took almost a year before we found the right investment property. In summer of 2016, I closed on a 5 bedroom, 4 bathroom, duplex-zoned home that sleeps 16 people. One thing that makes this such a great investment property is that the home has options. I can lock the basement off from the upper two-levels and rent the two units out separately. I also have the option of converting the space above the garage to a studio apartment and renting that out for $1,200/month.

Since the purchase I've booked 43 nights already at an average of $1100 per night, for a gross profit of  $46,700.    This property pays my mortgage and leaves me with plenty of gravy left over. This is just my first year owning the property.  Once the property becomes more well-known, I fully expect to net $90,000 per year. Another bonus to my rental strategy is all the food and booze that renters leave behind. Believe it or not, this significantly cuts down on my grocery budget. 

Going forward, I'm going to continue to build my reserves, buy a similar property, and continue this cycle until I'm wealthy and retired in Belize.

I would like to get a loan from my parents for $150,000 to purchase a house cash.   What are you doing with the money your parents gave you on your taxes?

Hello,

I'm interested in making an all cash offer to a bank owned single family home.   The trouble is I would like to get a loan from my parents of 50% of the home cost and make payments with interest to them monthly.   Looking into Colorado law it seems that is harder than it appears.   What are my options here?  What would a personal loan of $150,000 be put on my taxes?

http://www.summitdaily.com/news/19274902-113/mountain-law-when-mom-and-dad-are-the

Thanks!

Hey Guys,

Just wanted to follow up.   I did purchase the property successfully and do a full rehab and now have positive cash flow on it.  Many owners were interested but no one exercised their first right of refusal.

Is there a specific Colorado form of addendum, or something I draw up?  I was not planning on getting an inspection due to the current state, it's being sold as is.

Howdy Everybody,

This question was asked on my behalf. Thank you for the responses.

The first right off refusal must meet the terms and conditions of the initial contract. Also matching down payment.

Should my earnest money be equal to the sale price to deter people from quickly jumping in?

This is a FSBO, cash deal. And quickest close possible. The homeowners get a 10 day notice to respond which is not business days. So I'm thinking close on the 10th day utilize presidents day weekend?

Condo does not restrict rentals. You can't own more than 4 units on the property. It won't be hard to get out of, we are currently revising the declarations to remove ROFR.

Please explain escrow for repairs, I'm a novice at this. A board member suggested I create a purchase price $50,000 higher then a credit for that amount to me from the seller. Not sure the legal and tax ramifications of that though.

Thanks