All Forum Posts by: John Hamilton

The tenant has been in the house for 12 years with a $500 rent that they stopped paying a few months ago and have become very hostile with the situation. The seller has not yet started the eviction process but they want to get rid of the property. They have not seen the inside of the property in many years but it is apparent that it needs heavy rehab judging by the outside. The property is 2 bd/1 ba, 1000 sqft. 

I am thinking ARV - 10% CoC ROI, Heavy rehab costs for this size house and the high end eviction cost in Colorado = Maximum offer. I would first try to offer cash for keys but eviction as the last option. The ARV in this area would be around 325k. What do you guys think? Would you buy this house sight unseen with the given circumstances?

Investment Info:

Other buy & hold investment in Canon City.

Purchase price: $330,000
Cash invested: $20,000

This is a ranch type property with a 2 bd/1 ba 950 sq/ft house and 3 additional out buildings. Currently the 4 acre field is being leased by a local farmer and I am currently working on turning the second out building into an ADU.

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

With a large property such as this, it opens additional opportunities for future renovations and ultimately income.

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

This deal was found on the local MLS. Originally, it was listed at $350,000 but was in rough shape and would only qualify for a conventional loan. It sat on the market for about 90 days due to this fact and I ended up negotiating a deal for $330,000.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

After closing on the deal late November, I began renovations on the main house which lasted until mid March. Renovations consisted of all new paint, flooring throughout the house, trim, lighting/ceiling fans, and fixing many small issues as they came up.

What was the outcome?

A completely renovated house which I began to rent out while I was in Europe for the summer. I added about 20k of equity on top of the renovation costs.

Lessons learned? Challenges?

Many challenges arose throughout the process. Mainly the flooring due to the fact that this particular house was built in the early 1900s and the floor was anything but level. I learned a ton throughout this process and look forward to the next one!

I take the approach of long term holdings. Wealth tends to favor the patient. Especially with it cash flowing $700/month while your tenants continue to pay down your mortgage. Also, I don't know your particular market but rents tend to increase over time, potentially increasing the amount of cashflow. If you do come across an investment opportunity you could even cash out re-finance and have access to some of the equity in your home (granted that would raise your current monthly payment). Obviously take everything you read on public forums with a grain of salt and make the best decision for you, but this is what I would do.

@Matt Teegarden it sounds like you have a pretty good plan in the works! I haven't heard of ADPI but I'm going to check it out now. I am currently active duty and going to be transitioning out over the next year. Never made it out to Japan though but I have always heard good things. 

I recently bought an investment property then immediately went on a trip. While I was gone I was managing the rehab of the place and am now renting out the house. I was able to do that with the help of a friend who does construction full time. I can't underestimate how important it is to have people you trust in those locations where you're investing! I think going to meet ups and getting involved in the community of investors that know the local area is a good place to start. 

I'm excited to see where you're investing journey takes you and best of luck!

Hey Chris, under the network tool is a place for events that allows you to search by zip or city. That's what I've been using in order to find people in my area as well. Below is a link to one in your area. Best of luck!

https://www.biggerpockets.com/...

@Darius Ogloza it’s hard to say. I lived in woodland park and my neighbor had an air bnb that was rented almost every night so that may be an option but I’d rather have a long term tenant. With most people working in the springs it may be harder to find renters the further away you get.

@Daniel Haberkost I appreciate it! I have been focusing on the north powers area but I’m open to anywhere that makes sense. I saw some houses in the new developments southeast by fountain so I’m gonna go check them out today. It does make me nervous about paying over market value since I would have to wait a year or two to even break even. However, my strategy is to focus on cash flow and not sell any properties for the foreseeable future so it may make sense to get into a property that I can still cash flow on.

I am looking for a property to get in on a house hack. I live in Colorado Springs and the market is insane here right now. Within a few hours of the listing being active it will have multiple offers and usually ends up selling for about 30k over market value with how competitive it is. What do you guys think about buying in a market like this for a house hack? Or should I wait/search in the surrounding area that is less competitive but may not be as easy to find renters?

Hey guys. My wife and I are new to Colorado and the wholesaling business and are big question is whether or not one of us needs to have a real estate license in order to move forward with wholesaling.