All Forum Posts by: Michael Orf

Welcome to BP, Chris!

Hi Taylor,

I actually started in property investing out of state.  I live in Denver, but starting investing in the Phoenix area.  I did have someone there that I knew and trusted that looked at properties for me and is now managing them.  I'm actually in the process of selling some of my Phoenix properties and buying in Denver.  I'm not sure why everyone seems so down on the Denver market.  I'm seeing good cash flow here and the potential for great appreciation.

Hi @Brian Armstrong- welcome!  Good cashflow opportunities in Colorado now!  Good luck to you!

Welcome to the site.  Although I've been an investor for several years, I just found the site recently and learning a ton.  Good luck with your new venture!

Welcome Edward!  These forums are a great way to learn.  Also, look for local experts that you can find a mentor in.  I found that personal relationships are the best way to jump in with both feet!

Welcome @Nick Hamar!  Sounds like you are well on your way to success.  I had been an investor for several years and recently got my broker license.  I just recently found BP and am amazed at the amount of info available.  Good luck with everything!

Welcome @Ian McCaul!  I recently quit my job in IT to focus on property investing (and some other business pursuits) full time.  It can be done and it sounds like you have the beginnings of a great plan!  Best of luck!

In my experience, they like cash flow better, but I'm not really sure it matters much to be honest.  I guess what I'm saying is that I wouldn't use that as a factor in determining how to proceed.  

With $150K to start, you can pick up 2 places using the amounts that I sent earlier.  You would see some great cash flow plus (hopefully) some good appreciation given the forecasts for the Denver market.

CJ,

The only thing about cheaper is you end up with a lower quality place which equates to more upkeep and likely not the type of tenant you want.  As an example: I paid $330 for a place recently, didn't need to do a thing to it and had a tenant move in the day after I closed.  A couple of months later, I bought a place for $305 and ended up putting $8K and 2 months of work into it to get it rent ready.  

I always do 30 year fixed now.  When I first started out, I did a couple of 15 year loans and they are working out fine, but I would rather have the increased cash flow.  The appreciation has made the increased principal payments negligible.  Plus you have to take into account the tax benefits of the interest.  

CJ,

I used conventional financing so did use a decent sized down payment.  However, you can still see good cash flow putting less down.  I think the sweet spot is in the $320-350K range.  You can get rents around $2300-2400 in that range.  You can use the calculator on BP to see where this leaves you or I can send you one that I use.