All Forum Posts by: John Negomir

My .02... On the listing side, as an agent, I'll usually give an investor about 3 business days at the most before the EM goes hard, if the offer is good and has POF or a lender letter with a contact that I can call. The solid ones can pull together their due diligence and inspection in that time, enough to know if it will work. If you're serious, get your financing options (yes, plural, HML back out all the time and yes, my sellers have kept EM before when the HML lender couldn't fulfill at the last minute) and be ready to do a go/no-go decision quickly. Make your offer compelling - quick close, no inspection, no appraisal, something - and remember you're working with what is probably the seller's largest asset in their life so don't waste everyone's time. Taking a property off the market in a strong market doesn't do sellers any favors and their agent has to look out for the seller's interests...

I've been active with Denver rentals since 2008 (12 units) and am still bullish on Denver at a reasonable price (you will have to put in a number of offers).  Denver is a great place for rentals right now, and, as @Scott Trench said, in general the costs of owning/managing the properties has been fairly low for us. I think we've had about 2 weeks of actual vacancy expense that wasn't covered by a deposit in the last 5 years. Of course that all depends on your up-front work in rehabbing the properties, selecting the tenants and staying on top of things. I run my own spreadsheets to determine what I think is ok for cashflow, ROI and anticipated expenses rather than a strict formula - it may not be as much of a no brainer as a 2% type of rule, but it works. One word of caution is that Denver has been cyclical in the past, and as a Realtor I've liquidated portfolios for investors who over-leveraged their properties and got caught by a down cycle. Check the rents and prices of what's around you, and make sure you can still survive if you have to go lower than them for a few years or need to exit quickly.

Resort area MLS systems sometimes have a field for lockoff so a local realtor should be able to help. As a buyer you should make sure it's allowed by the city/County where the property is located.

Two things have helped us immensely.  First, we went to online payments - no more "check is in the mail" or "stop by to pick it up on Tuesday" bull.  Second, when you post the notice as soon as the law allows, print it in bright yellow or orange and post it in a very visible place on the door.  Seems to generate a response quickly.  Our late fee is $20 per day after the 3rd, and I ask for it as soon as rent isn't in on the 3rd.

Condos can make good rentals when the price is right, just make sure to due your due diligence. Your realtor should be able to help you quite a bit,  and your surprise repairs are likely to be smaller than with a sfr.  Probably the best mitigation strategy for the hoa is to go to the meetings and get involved - highly educational and helps to inject the investor viewpoint.  

Semi Gloss in the kitchens and baths, trim and baseboards, Velvet Sheen (eggshell/satin) in the living and bed areas.  Like Henry Ford, we paint all units in any color the tenants want, as long as it's Aspen White and have had great results with Kwal paint.  

What @Bob Bowling said. We've got both condos and sfr in our portfolio, and our experience with both has been you have to buy it right, understand the area/complex and understand all the costs involved. In general, the condos have less maintenance and lower insurance payments which can partially offset the HOA fees. The other bonus is rehabbing a wreck of a condo is relatively inexpensive and quick since you're generally doing walls-in only. And, if you're jumping in on more than one unit in a complex, get involved in the HOA so you do have some control over your investment! There's no reason you can't make money on condos, you just need to look at some additional parameters to make the right call.