All Forum Posts by: Mitch Ottoson

Hello! I am currently looking for a single family home that I can put some work into and then rent out (BRRRR). Ideally, the property could be a 3/2 in the Denver metro area, Denver, Englewood, Aurora, or Thornton. Looking for a property with up to $250,000 purchase price that has comps in the $300k+ ARV. Thanks

Thank you Jacob! 

I am wondering how much the cost would be to add a master bedroom and bathroom onto a 2/1 to make it a 3/2. I know that the finishes and details can make a huge difference in the cost but I am pretty handy so I am trying to understand the cost for general construction outside of the scope of cosmetic. Looking to understand costs of addition such as laying the foundation, framing, insulation, hvac, etc..

Thanks for reading and sharing!

Mitch

Hello BP! I am wondering how much the cost would be to add a master bedroom and bathroom onto a 2/1 to make it a 3/2. I know that the finishes and details can make a huge difference in the cost but I am pretty handy so I am trying to understand the cost for general construction that I would not be outside of the scope of cosmetic additions such as laying the foundation, framing, insulation, hvac, etc.. Thanks for reading and sharing! Mitch

Hey @Cody May, I admire the courage that it took to start new and take massive action towards your goals. If I could make a recommendation to you, I would look to house hack a small multi family property, live in one unit and rent out the rest to get a lower cost of living. In Denver, these properties can be pretty expensive but there are several homes with in-law suites or carriage homes that you can find. Best of luck!

Hey Jerri Magana , I would recommend using Land Care Colorado based out of Fort Collins. The guy that owns the company did work for Colorado State and Harvard University's arboretums before starting this company. Very knowledgable, reputable, and they do it all so you can get a great price. I can PM you contact info if you'd like.

@Jeff Rabinowitz - I don't disagree that this is likely not the most reasonable offer but to your point it's good practice. This is the first property that I have come across that would fit my criteria and those are the rates that would make the deal work. I heard in a podcast that if you go so far as to put in the leg work, might as well put in an offer. Good to have realistic expectations going into it though.

@Ayodeji Kuponiyi - Thank you for the input! Since the seller is not an investor, I will definitely have to educate her in order to make her feel comfortable if I have any shot at making this deal work for both of us.

@Edgar U. - I've heard the term but not sure I fully understand, can you explain what a 5 year balloon is?

Hello BP! I was hoping to get some help running an analysis on a condo in the Denver area. In single family houses and small multi family homes, I generally budget Capex between 7-10% but with a condo, I don't expect to be replacing a roof any time soon (as on example). When using the rental property calculator, what percentage do you use for Capex and what other variables change as opposed to analyzing a house? Thanks for the input!

Hello BP! After reading Brandon Turner's book on investing with low and no money down, I began looking for some ways to use creative financing. I found a property that is owned free and clear by a seller that I'd be interested in inquiring about seller financing.

The house is going for $335,000 so I was thinking of offering $5,000 down and a 30 year loan at 4%, for a monthly payment of $1,575. Are the any other costs that I would need to factor into my offer?

Additionally, what steps should I take as the professional investor to help the seller feel comfortable with this deal?

@Chelsey Hamill, @Travis Sperr, @Charlie DiLisio, @Steven Gesis Thank you all so much for your insight and well wishes! It is very appreciated! I checked out all of the content that you sent me and think it is great information. 

After reviewing all of that material, I was wondering how I would be able to do some of the work myself. I read that one of the best advantages of the 203k streamline is the ability to do things that you are qualified for yourself. I was hoping to be able to do the paint, tile, flooring and other small improvements myself with the 20k being used to fund the materials. Do you know how I would indicate that I would like to do that myself and then have a contractor come in and do the work that I am not qualified for?

I was also wondering how it would be determined how much of the 35k I am eligible for?