All Forum Posts by: Kenny Smith

@Ellen Olson

Can't go wrong with these 3!

1. Rich Dad Poor Dad by Robert Kiyosaki

2. Set for Life by Scott Trench

3. How to Invest in Real Estate by Joshua Dorkin and Brandon Turner

Best of luck!

-Kenny

@Austin Berlick

I'd agree with Christoper here!  We buy all of our appliances from an appliance store called Appliance Factory here in Denver.  They don't really promote it, but just ask them for ONLY scratch and dent options.  Our stores here classify the scratch and dents into grade A, B, C, and D.  D being in the worst shape and biggest discount, and A being in the best shape and the least discount.  What I've found is that some of these scratch and dents are in very inconspicuous spots as it is, and I'm happy to buy an appliance with a dent where nobody can see it for 30% off.

To Christopher's point, these units will get scratch and dented at some point anyways!  Cannot recommend this strategy enough.

Best of luck!

-Kenny

@Petronella Kerssens

Great question!  I get this question from a lot of clients, and it can really come down to looking at just a couple things, and a couple of questions you have to ask yourself of what your financial goals are long term.

1. What is your cash on cash return for the 1, and what is it for the 2?  I.E. after expenses, what are you cash flowing on the property, and what is the total percent of the money you invested you can expect back each year from that cash flow.

2. What is the average appreciation for the properties in that area?  Or, to get even more gradual, what would be the average appreciation for the type of properties you're looking at?  Your realtor should be able to help you with this.

3. Lastly, based off of these 2 questions, what is your Net Worth ROI? Or, your cash on cash return, plus your appreciation in these homes should be able to give you your answer.

More times than not, you are going to see a better ROI on investing in multiple properties. And it really depends if you'd sell these properties down the road, refinance them to buy more, etc.

You should also talk to your Realtor about what sellers are willing to offer in your market when it comes to temporary buy downs the seller is willing to cover via a seller credit.  That is how I've been helping my buyers stomach these rates and buying them time to hopefully refinance if and when rates go back down.  Never a guarantee though.

Best of luck!

-Kenny

hey all, this event has been CANCELED last minute.  My fiancé tested positive to COVID about an hour ago, and I feel it would be irresponsible of me to host this meetup.  For that reason, I am going to have to cancel.  I hate to do it, but I simply won't have time to get a last minute test done.  So sorry for the inconvenience.

@Hansel Gunawan

It really all depends on what is in the HOA's bylaws. Some may not allow something like this, and some do. Some have minimum lease periods and some don't. It is really important you double check with your HOA before doing anything. If not, you could get yourself into a mess.

Best of luck!

@Nilusha Jayasinghe

I agree with everyone's input here.  I run a couple of these types of properties in Westminster.  Yes, stoves are against code if it is not zoned R-2.  Putting a second stove downstairs really depends on what you are comfortable with or not and if you are willing to go against code or not.  Technically, it is illegal.

As stated, if a stove is not allowed, then have them provide what is allowable, such as a hot plate or counter top stove.

Lastly, where people get hung up in converted their home into a non-conforming duplex, is not having the accessibility from one unit to another.  It is a grey area for sure, but if you decided to wall off the upstairs to the downstairs, you have now converted it into 2 completely separate units making it a duplex.  If it is not zoned R-2, this is illegal.  However, having a door in between the 2 parts of the home would be the same as renting out a room.  Again, there are grey areas here, but I would have the building department walk you through what you can do.

Shoot me a DM, and I'd be happy to walk you through it in more detail if need be.

@Mary Larson

If you are the seller, at least here in CO, you don't have many outs in the contract. If you are pertaining to the closing documents for the HOA, the Title company should have gotten that together. If they can't get the documents in time for closing, they should do an amend/extend to push closing until the documents are in place.

If they try to bail on closing because of this issue, I am not an attorney, but this sounds like there are means for the buyer to sue the seller if they chose to do so.

To piggy back off of this conversation..where are ya'll at with covering staging costs, splitting with owner, and having the owner pay for all of it?

July was an interesting month when it came to the Denver real estate market. We saw the market building steam starting in March and became RED HOT by June.

July started to paint a different story though. Inventory started to increase to over 6k homes on market or up 9% month over month. We haven't seen 6k homes on market since late November '22.

We ended the month with median home prices down from $595k to $588k, and median days on market went from 9 to 11.

There could have been some seasonality coming into play as historically June will be the busiest month of the year when it comes to lowest days on market and highest median home price. However, rates seems to continue to inch up, with a 30 year fixed conventional mortgage averaging at over 7% nationally.

If rates and inventory continue to rise, the buying pool could start to "hold off" until rates come down. If this happens, I would project home prices to continue to see a downward trajectory.

The next couple of months will certainly be interesting to see how it all plays out...

hey all, friendly reminder of the meetup coming up this Tuesday.  We will be skipping the month of September; this will be the last one until October so I hope to see you there!