All Forum Posts by: Justin Holwell

I am considering investing in real estate in the near future. I have been doing as much research as possible, and really like the idea of BRRR investing. I am looking at opinions and points of interest that I may not have thought about.

Basic Info - Capital being used is a HELOC in the amount of $150k- I also have around 50K additional funds that can be used if needed.

I currently live in Northern Colorado and am considering multi-family or SFH primarily in the Greeley Colorado area. The only problem I am finding is that 200k is not enough cash to purchase anything in that area. Does anyone have any ideas on how to properly BRRR in this area efficiently with the capital I have? Are there other local areas I should be checking out instead? Should I purchase a Duplex in the 275k range with a mortgage then get another mortgage after the rehab has been done? I know that this will cause me paying closing costs twice which doesn't seem to be very cash flow friendly.

I also have family in the Houston area. I have been looking at multi-family as well as SFH's in that area. I do have a hesitation with out of state rentals, but again that may be due to a lack of education in the process, and a fear based on nothing. Does anyone have any advice in this area and or suggestions on which market is better.

I have also considered the idea of going all in with a large Multifamily deal and using the 150k as a down payment on a $650 to $700k property. The obvious problem is cash flowing while also paying for the HELOC payment of $850 dollars a month. I do think a good cash flowing Multifamily unit may be the best option, but again I am still learning the ropes with rentals.

If anyone has any advice it would be greatly appreciated. Thanks in advance. 

Justin 

Looking for a wholesaler in the Northern Colorado Area. If anyone knows of a wholesaler in the Northern Colorado area please let me know. Thanks in advance. 

Justin Holwell 

Please add me to your list. Thanks 

@Frank S. - Thanks, and if I decide in the future to buy a few rentals down there I will let you know. For now I am going to focus on my surounding area and see if I can come up with a few good deals over the next year or so.

@Nate Waters Thanks for the response. It is good to hear outside investors are seeing long term growth possibilities in the NOCO area. I also have heard about very large retail developments here in NOCO along the I25 corridor. This would also bring jobs and more renters to the area. I think that if I can find a couple deals were the price is right I want to move ahead with the NOCO area. Atleast for the first few deals. Thanks for your input.

@Joshua Tikal Thanks for the response. I have actually thought about investing closer to UNC to get student rentals. My only fear would be the condition of house after years of college student abuse, however that may only be a fear driven thought due to the fact that there seems to be many remidies for that. Including larger deposits, parents on lease, etc. As for townhomes and condos, when I run the numbers the HOA fees (depending on the amount of course) seem to eat into the cash flow to much to justify it. If I am going to have a higher cost each month in expenses I might as well as just purchase a SFR or Multi for more money. Again I may be wrong, but this is just what I have seen running the numbers.

@Jennifer S. - Thank you very much for the response. Based on my analysis and what looks like your's as well there are better profits to be made out of state. If you don't mind sharing what areas nationally you are focusing in and why? I have heard good things about Dallas as well as Indiana. Its good to know that there are currently investors here making profit. I was thinking about flipping SFR here that need minor flipping and then renting them out. I have never done DM before but would be willing to give it a try if it could lead to a good deal locally. I may have to look into contacting local hard money lenders to get ahold of the wholesaler list just to see if there are any good opportunites on it. I will also check out the BP events page as well as the Meetup website and see what events I can make it to. I really appreciate you giving me so much great info!

@Grant Shipman - Thanks for the response. It's good to hear you think there are still good deals in the area. I am not sure about Eaton. The barrier to entry may be lower buy I would assume rental rates are lower as well, but again I have not done any analysis on that particular area. How are your Greeley properties doing in terms of vacancy rate, tenant quality etc? Are you currently vested into SFR or multi? Thanks again.

Frank - Thanks for the info on Houston. I do have some family in the area and they believe that now would be a great time to start investing. I am also concerned with flooded properties, but there may be alot of great long term opportunities in the area. Where in Houston are you currently investing in?

My name is Justin Holwell and I am currently looking at investing in the Northern Colorado area. I am new to real estate investing, although I have bought and sold 6 primary residences, this is my first jump into actually investing in real estate. I am primarily wanting to invest using the BRRR strategy for buy and hold rental properties. I am looking at both SFR as well as multifamily properties. We have around 80k in initial capital and want to make smart long term decisions. With that said I have a few questions:

1) Is the Greeley market a desirable one for buy and hold rental properties? From the research I have gathered it looks like Greeley is good long term play with upward appreciation still possible despite the last few years of large appreciation gains. 

2) If Greeley is a good long term play are there deals to be made on the MLS? From the numbers I am running the MLS does not seem to have that many good deals. Are investors in Greeley primarily looking at off market deals vs on market deals?

3) I am not opposed to buying out of state properties if the numbers are right. I was looking into the DFW as well as Houston. With all the flooding in Houston I am not sure if I want to jump in that market. As for DFW the numbers look good for long term growth and appreciation. 

4) I would love to start networking with other like minded REI's in the area. Are there any local meetups with BP members coming up soon?

Thanks and I look forward to any information provided. 

Justin