All Forum Posts by: Mike D.

Thanks for everyone's feedback, I really appreciate it. I have decided to pass on that particular deal but am evaluating another right now, incorporating everyone's feedback.

@Trace S. - question for you...where did you get the information on average rents in Denver?  The reason I ask is I am looking at a 3 bed/2 bath with a current tenant paying $980.  Obviously low based on your numbers above.  Local search on Craigs list supports your numbers above better than the tenants current rent.

Thanks for the quick response and advice. I will definitely check out Craig's list and what's included in the HOA. Assuming the HOA includes exterior maintenance, is it prudent to Reduce CapX and /or repairs to something like 5%? Regarding the General to HOA or not to HOA debate, I appreciate the feedback and have been on the fence for a while. I've decided to proceed with caution and will definitely do some due diligence if I can find something worth pursuing.

I've been analyzing some townhome/condos in the Denver metro area for the last few weeks.  I wanted to bounce some numbers off folks to see if I'm going about the analysis correctly.  The reason I'm questioning my approach is I'm not seeing anything that looks like it will cash flow which may be just part of the market we're in but I thought it would be good to double check.

My sources for information include Redfin, Trulia and RentOmeter.  Based on the numbers I've ran, I don't think any of the properties warrant more detailed analysis.  One example is as follows.  All numbers are per month.

2 bed, 1 1/2 bath 1,100 sqft
Purchase Price - $143,000

Rent - $1,479
Principle & Interest - $768
HOA - $226
Taxes - $54
Insurance - $55
Vacancy (10%) - $148
Repairs (10%) - $148
CapX (10%) - $148
Property Management (10%) - $148
Total Monthly Expenses - $1,694
Cash Flow - Negative ($215)

As stated above, this doesn't look like a deal because of the negative cash flow.  In the properties I've looked at, virtually, I have negative cash flow ranging from ($141 - $494) using 10% for vacancy, repairs, capx and pm.

I appreciate any feedback you might have and thank you in advance for your time.

I'm in the process of building my connections and am ready to add a real estate attorney to the list. Can anyone point me in a direction for one in the southeast part of the Denver metro area?

does anyone have a Realestate knowledgable CPA contact in the Denver metro area?

Hello, just thought I'd give a shout out to everyone. I'm new to Bigger Pockets and from Aurora CO.