All Forum Posts by: Kevin Brown

@Erica Calella

Thanks for the response. In your situation were you cash flow negative for a period of time? Did rents increase to the point where you became cash flow positive? Did you hire a property manager or self manage the property?

I grew up in Denver but prior to moving back I lived and worked in the city for 10 years, so I understand the cost of living (even though I think it’s even higher now). The industry I work in does not do a great job of covering the cost of living in Denver but does in NYC. As I see it my options going forward in NYC are my employer extends the current arrangement, I renegotiate for local package, or get a new job. The majority of my career has been working in NYC and I have a bunch of connections there so I don’t see an issue with getting a new job.

@Ko Kashiwagi

I’ve thought about providing a fully furnished mid term rental. But thought that would take more to manage and thought living out of state would make it more complicated.

@Melanie P.

Thanks for the response. My anticipated rents could be off but came up with it based on what other houses are going for in the area, that’s why I provided a range. I think if it was a 3x2 I could get much more but unfortunately I only have one bath.

One differentiator is that my house is in a better school district than the other houses I’m comparing to so that could increase the value slightly.

@John Mason

Thanks for the article

@James Carlson

SE Denver, the house is in unincorporated Arapahoe county which provides access to the cherry creek public school system vs Denver public schools which I also a see as a positive.

Looking for advice on what my next step should be and how to expand my real estate portfolio. Bought my first house (primary residence) in Denver, May of 2021, 3bd x 1 bath, for $525k with $85k down at an interest rate of 3.25%. Current PITI just over $2250 with a balance of $415k. Redfin/Zillow show an estimated value of $600k. I have made some upgrades since living here, fully renovated the bathroom and laundry room, upgraded appliances, added a tankless hot water heater, and replaced all galv. pipe with pex. I think if I were to sell it now I could get around $600k, maybe just below.

My company is moving my family and I to NYC and will be covering our housing (rent) for at least a year. With my company paying for housing in NYC it seems to be a no brainer to rent my house in Denver. Looking at rentals in the area I think I could rent the house for somewhere between $2400-$2600, which doesn’t leave much room for maintenance, vacancy, and a property manager(assuming this is necessary since I will be so far away). If I was to return to Denver I wouldn’t look to live in this house.

Should I rent for the next 2-3 and sell just before the 2 of the last 5 years rule? Hold long term assuming renting is consistent? Or should I sell in the near future?

Don’t have another down payment saved at the moment but have some company stocks that will vest over the next few years that could amount to another down payment. Housing in the NYC area is obviously more expensive and will likely require a larger down payment.

Thanks

@James Carlson

Thanks for the advice, I also saw that article about the Denver market. I think it makes sense to at least try renting even if it will cost me a couple hundred per month. Others may disagree on that but rents may also increase which will put me in a better position in the future.

Looking for advice on what my next step should be and how to expand my real estate portfolio. Bought my first house (primary residence) in Denver, May of 2021, 3bd x 1 bath, for $525k with $85k down at an interest rate of 3.25%. Current PITI just over $2250 with a balance of $415k. Redfin/Zillow show an estimated value of $600k. I have made some upgrades since living here, fully renovated the bathroom and laundry room, upgraded appliances, added a tankless hot water heater, and replaced all galv. pipe with pex. I think if I were to sell it now I could get around $600k, maybe just below.

My company is moving my family and I to NYC and will be covering our housing (rent) for at least a year. With my company paying for housing in NYC it seems to be a no brainer to rent my house in Denver. Looking at rentals in the area I think I could rent the house for somewhere between $2400-$2600, which doesn’t leave much room for maintenance, vacancy, and a property manager(assuming this is necessary since I will be so far away). If I was to return to Denver I wouldn’t look to live in this house.

Should I rent for the next 2-3 and sell just before the 2 of the last 5 years rule? Hold long term assuming renting is consistent? Or should I sell in the near future?

Don’t have another down payment saved at the moment but have some company stocks that will vest over the next few years that could amount to another down payment. Housing in the NYC area is obviously more expensive and will likely require a larger down payment.

Thanks

@Jeff White thanks for the feedback! My bigger goal, a bit lofty, but I’d like to build off of my career in the construction industry and reestablish a family contracting business into a builder/real estate developer. To address @Matt M. I would look to use this family business which essentially only only exists on paper (contacting license, name, small amount of capital) to act as GC and all work would be performed under the contractors name.

Looking to start small and grow to the point where I could leave my current job and be fully sustainable as the owner of the now reestablished builder/developer. In my mind I’d like to start with a small multi family that I could live in (1-2 years) and then hold that property and grow off of it.

@Jeff White do you have any recommendations on an investment minded broker in the Denver metro area? I am open to other options in terms of building new but are you seeing any quicker turn arounds on permitting in the cities around Denver (wheat ridge, Lakewood, aurora, etc)?

I would like to get some feed back on my initial thoughts of getting into the real estate investment business specifically in the Denver metro area.

I would like to purchase a single family home, demo it and build a duplex, with the intent of living in one unit for a period of time. Long term I’d be looking to hold this property and repeat the process.

I currently have a full time job working in the construction industry managing large infrastructure projects, so I’d like to think that I could manage the construction outside of my full time job. Assuming I have access to the funds for a down payment on the single family home and 20% for a construction loan, would this be a good investment of my money or am I better off using it differently?

Obviously the initial purchase of the single family home and cost of construction has the biggest impact on the overall success of the investment but what other things should I be aware of?