All Forum Posts by: Kenny Smith

Only an extra $200 a month for an MTR or STR? That number seems very low. My fiancé and I run 3 airbnbs right now in Westminster, and they do extremely well vs what we could get as an LTR. How many bed, bath, renovated? There are a series of hospitals over there, and you could crush it as a medium term rental. Check out furnishedfinder.com to see what MTR's are going for in your area. Then, check airbnb and see comparable STR's to yours in your neighborhood. Look on their calendar and see how booked they are, and what their going rate is to give you a ballpark idea of what you could get. Also, if you do consider an STR, you need to follow Denver's laws which is owner occupied, and requires a license. Read more below.

https://denvergov.org/Governme...

Feel free to give me a call if you have any further questions, I'd be happy to help.  

@Emmanuel Caldera

A couple initial questions you should ask yourself.

1. What type of rental are you doing right now? LTR, MTR, or STR? If you are doing an LTR, look at what an STR may cash flow on the property. Instead of selling, maybe you maximize your cash flow that way.

2. What part of town are you in?  Pulling data on what the equity growth may be in future years by looking at previous years median home price (by year) in that area, may be a good indication of where to expect your equity to go.  Hence, does it make sense to sell in that particular area if you can expect significant equity growth in the future. 

3. What is your current interest rate on your property now?  If you have a low rate, and you sell it, just know you'll have to now buy in a market with 6.7% interest rates for a 30 yr fixed mortgage which makes it even tougher to cash flow.

My advice is to analyze your current areas potential growth in future years, wait until rates drop, then you can explore either selling or doing a cash out refi in which you can pull money out to go buy more properties at that lower rate. Also, take advantage of an STR or an MTR if you are capable in your area. You will net much more cash than an LTR.

@Breonna Mahana

All sounds great.  Good luck in finding your investment property!  Who knows, maybe we'll see you around at a local meetup here and there.

We do ours the first Wednesday of every month at Blake St Tavern downtown.  

@David Lemont

All great points provided above!  One other thing to consider is maybe looking at a medium term rental to maximize cash flow even more?  It would be a little more involved seeing you'd have to furnish the place.  Depending on where it is in Denver, travel nurses are an excellent tenant pool to target and can make substantially more than an LTR (given it is a nice property, in a good location, near hospitals, etc.)

Let me know if you have any other questions, and good luck!  Sounds like you'll crush it.

@Tatum Briggs Mead

Hi Tatum!  Congratulations on getting started!  Our Real Estate Team, The Fi Team, specializes in helping clients find their perfect "house hack"/investment property.  We are all investors ourselves, and do our own monthly "house hackers" meetup here in downtown Denver in which local investors meetup, network, and have a fellow investor provide a presentation on their investment story.

Let me know if you'd be interested in joining a meetup or if you'd just like to grab a coffee sometime to learn more!

@Kitty Horeis

My recommendation is getting in touch with some type of chemist or marijuana grower.  I really don't think you are going to find your answer on a Real Estate platform like this.

Good luck to you!

@Account Closed

Agree with many of the responses here.  Not sure if anyone else talked about it, but have you read into house hacking?  Even in tough markets like here in Denver, house hacking has the power to possibly get close to that 1% rule if you do it right.

It really all depends on what your goals are? Is it to BRRR, house hack (cash flow), Flip, etc? Many options and possibilities depending on what you are trying to accomplish.

Reach out with any further questions.  Our Real Estate Team here in Denver, The Fi Team, focuses on helping clients find a good house hack that makes sense for them.

@Jack Martin

Are you using some type of Cost Calculator to run your estimated income, expenses, overhead, etc?  Every deal I ever look at or look at for my clients, we ALWAYS go through the our team's cost calculator to make sure the numbers work with whatever strategy you are trying to implement.

@Breonna Mahana

Totally agree with everything the above are saying!  It is critical to find an agent who has your best interests at heart, local knowledge, and also is a fellow investor!  Our Real Estate Team, The FI Team here in Denver, specializes in helping fellow house hackers/investors find properties that work for them.

If you'd like to chat further about house hacking/investing, I'd be happy to do so.

Just curious, so the agent knew of the issues with the home and did not disclose to you?  Typically, a buyer's agent can ask the listing agent for the seller's property disclosure which should provide any knowledge or issues known to the seller (such as a prior inspection).  This is something I always ask for prior to putting in offers even though technically the listing agent doesn't have to provide it until you are under contract.