All Forum Posts by: Mathieu Dumoulin

Investment Info:

Single-family residence other investment.

Purchase price: $715,000
Cash invested: $530,000

The house has a mother in law unit, and a main house.
We built an ADU, 2 bedrooms + loft for $300k.
The downstairs mother in law unit makes about $17k a year (gross).
We live in the main house.
The new ADU makes about $65k a year (NOI) as a STR.
The mortgage is a $500k 30 years fix mortgage at 3% interest rates$2,500/mo.
Cash + Mortgage: $500k + $530k= $1,030,000
ppraised for $1,400,000
Cashflow: $5,000/month 10% cash on cash + live for free.
: $400k for $530k invested, so 75% return.

What made you interested in investing in this type of deal?

We live in a place where real estate is expensive. Rents are high as well. I's a highly desirable part of the world and STRs are doing really well. With this property we were able to leverage the STRs potential to the fullest, live in this area for free when finding a place to live and keep it affordable is a real challenge, and put our money in a location that is poised to appreciate: desirable, the property backs up to BLM (scarcity), and there is nowhere to build in this area.

How did you find this deal and how did you negotiate it?

I'm a local Realtor.

How did you finance this deal?

Sold a condo, and used cheap debt available back then.

How did you add value to the deal?

Renovation + construction of an ADU.

What was the outcome?

High cashflow, and great living situation.

Lessons learned? Challenges?

Despite the epic rate of return, cashflow can be a challenge on STRs during the slow months. For example this year we've had a slow start of the Winter due to a low snowfalls and it could have been a challenge if we didn't have reserves, or more debt to service.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Reach out to me if you need any contacts in the Glenwood Springs to Aspen area.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Redstone.

Purchase price: $595,000
Cash invested: $300,000

Triplex on the river, with an office space rented to anchor tenant (10+ yrs on site) and 2 short term rental units booked through the local hot springs.
A stunning property zoned village-residential, very versatile!

What made you interested in investing in this type of deal?

The building is versatile and there are value elements that are certain to add value on the long term (River front + original building has history).
With 2 small units (±700sqft each), all connected but separate, we can turn the home into 3 living spaces rented short or long term, we can live in one, we can keep one of them as an office space, or we can renovate it as a single family home with an ADU and to sell it for the most $$.

How did you find this deal and how did you negotiate it?

After looking for over a year, that was the only attainable investment that was cash flowing in the area.

How did you finance this deal?

We started a family investing company.

How did you add value to the deal?

We changed the booking policy and added 20% reservations. We self-manage as much as possible to cut on cost and save for the next investment.

What was the outcome?

+20% reservations.

Lessons learned? Challenges?

With COVID, we were able to really appreciate the versatility of the building. We put long term tenants (month to month lease) to be able to cashflow while waiting.
For the first 2 years, we didn't use the money we made. We built reserves and we are able to just wait it out without sweating.
When chasing cashflow in the short term rental market, don't forget to build a rainy fund! You have to make sure you can pay the inherent cost of owning real estate if incomes dries up.