All Forum Posts by: Mike Timme

Thanks Erin.  Full disclosure, I work for a real estate developer and have access to capital and expertise in that arena. We typically do larger projects but our principals have indicate that if I can find lucrative single family development opportunities they would abosolutely be interested in allowing me to run it as a side project. I am very comfortable running the financial modeling on these deals but the current environment is extremely slim on opportunities. The absence of buy side deals, makes everything highly speculative. 

Like most people on this forum I am just looking for the best and most interesting way to invest my own money and control my own future, so I appreciate all of the creative feedback. 

Thanks Justin, great advice. I'll look at some of the towns you recommended. Just out of curiosity did you keep any rental properties that you are now managing from CA?

Thanks for the feedback. Everything you said makes sense and seems totally logical. 

My other unique is issue is that I can't really expand my area without going rural. Denver is about 4 hours and that's not exaclty a cheap or uncompetitive market either. I'm originally from St. Louis and know that city very well, so I am considering investing their from afar, even though its not ideal. Using a reliable property manager or partner in STL seems like a better way to get started than banging my head agaisnt the wall or enteritng a sub par deal here in Aspen.  

I am just getting started and would love some advice or success stories from people whe live in a unique market like I do. I live in Aspen, CO. Prices range from $2000+ psf in the city core to $300-$400 psf down valley about 45 minutes away. Foreclosures seem to be non-existent and a robust affordable housing program seems to have eliminated the middle class market. It is also a small market, even when you consider the entire valley, and is comprised of a mix of full-time residents, second home owners, rental investors and unoccupied homes owned by the uber-wealthy. Free market rental rates are high (think NYC and SanFran) and certainly bounce around from luxury to upper-middle-class working folk prices. When I try to run the numbers on any investment they just don't seem to add up for normal investing. For instance, buying a cheaper 3bd 1bth home/condo in Aspen may cost $1.5M. This price is low end, so assume a low end rent of $4,500 per month. Unless you make a huge down payment, your rent isn't covering your mortgage, and if you make a huge down payment your cash on cash return is garbage. If you try to do a fix and flip instead of buy and hold the options are extremely limited and there is so much money here you are not going to get a great deal on the buy side.  I love living here and know the market, but I'm wondering if I need to explore a different or larger market to get started. Thoughts?....