All Forum Posts by: Kevin M Cooney

I live just outside of Denver, and I’m looking to buy another rental. Here’s my question. Should I buy in Denver, and focus on larger rents after I pay it off, or should I buy out of state for all cash and get immediate supplemental income?

Here’s a scenario. I can buy a duplex for $500,000 and make about $3,700 a month from that. However I’ll really only make $300 a month until it’s paid off.

I can buy a house out of state for $100,000 cash (my downpayment for a property in Denver) and get $800 a month immediately in rents.

Which one is better?

My end goal is to have enough passive income to retire and not have to work, so I like the greater rents for when they are paid off.

However, I could be scooping up a lot more properties that cost less, and be getting immediate income which would all be put back into investing.

Either way, I’m not taking any money from my investments now. They are purely there to “retire” earlier.

Any advice would be great. Thanks guys.

@Diane Tycangco it is possible you just have to really look hard. Now with interest rates a little lower your monthly payments should be lower. I have quite a few investors still scooping up Townhomes and condos that are cash flowing. The end of summer is one of the best times to buy in the Denver area. Most homes available, and a lot of them need to sell. You can get some really good deals. May have to change your criteria of 3 beds 2 baths though. Even smaller units are having pretty positive cash flow.

@Mike Nedved small multi family is tough, and not impossible. It would be best to try and find one off the market. Turning around and selling it on the back end with new tenants in it, at higher rents may not pay off as well as you think.

I know I don’t necessarily like buying multi family with tenants already in place. Plus duplexes are hot items for owner occupied units as of late. Seen a lot of people buying them to live in one side and rent out the other.

I like the plan, and it could work. Just probably have to find off market deals, and special situations.

@Marcus L Roberson as much as I love our state of Colorado and think there are still great opportunities here. With those numbers why would you ever leave? If you can do those kind of flips and learn how to systematize that you could get your flips done quicker, and have more than one going at a time. Seems like you could kill it very quickly there.

I appreciate the belief in instant success in RE in Colorado. Just know 50k out here doesn’t go that far. It’s always safe to plan on having reserves before moving out here and jumping into a full time commission only job.

If you get those returns on flips I would just keep doing that, and ultimately you’ll be able to buy a vacation home in Colorado.

Hey @Diane Tycangco. I have some units that are section 8. I really like it. I stay outside of Denver County for Section 8. In Jefferson County (it’s mainly suburbs about 20 minutes outside of Denver) for a 3 bedroom they $2013 a month if you pay water and trash. They will pay an extra $100 if you pay gas and electric. They are desperate for housing so it’s really easy to rent out. Also, the tenants don’t want to get kicked out of the program, so they are usually some of my better tenants.

These are great my newest one just came in yesterday

Potential Tenant: It says you allow dogs, do you have an additional

Me: Yes we have a fully refundable extra deposit of $200 per dog.

PT: Okay I have 5 how much will that be?

Me: $1,000

PT: oops I forgot I actually have 6 dogs.

Me: Okay $1,200, however I think the city only allows you to have 4 dogs as a maximum

PT: Oh well I’ll just get rid of 2, actually I have 7 so I’ll get rid of 3, do you take felons? My BF is a felon, but I’m not going to put him on the lease.

Me: Anyone over 18 living in the home or paying rent must fill out an application, the fee is $45 you can fill it out here.

@Thuy Pham-Satrappe

I prefer to buy for cash flow. The way I see it, is if I get a property that is renting for $4,000 a month, as soon as it is paid off my monthly income just increased $4,000.

Of course I want a property that has the potential for appreciation. When it comes to multi family, I’m usually going with the cash flow option.

@Brian Porter you can do Air BNB as long as it’s a primary residence. You can rent out an extra bedroom, or if you have a basement with a private entrance you can always rent that out too. There are other programs for traveling nurses and physicians out there you can always look into. Furnishedfinder.com is a really good way to rent out part of your house. Those are all a minimum of 30 day stays. That’s always nice to do in a second Home you may have.

With Airbnb if people stay in an extra bedroom most of the time you just live like normal. For the most part, Airbnb guests who stay in a spare bedroom are polite and keep to themselves, or they will sit down and talk with you. It’s a great way to hear interesting stories that’s for sure.