All Forum Posts by: Matthew Rutledge

In my admitted amateur perspective, I think you are pretty spot on with the higher end units and higher end rents.

If I were in a situation to pick up some multi-family B or even C properties and fix them up just a bit, I think that might help fill some of the potential gap created by adding more high end places.

When checking rents on SFH, I like to check the nearest apartment complex to see what they are offering in terms of rates and incentives. In some areas, they are the competition - especially with the younger crowd.

-Matt

Welcome about Kristian.

Just a reminder to double check those build figures before you make any commitments. Your estimate seems low, even for Weld County. It shouldn't be too difficult to take your plans to a couple of builders/contractors and get ballpark estimates for build (you'll want both dollars and days as days impact holding costs).

I think you're potentially on the right track to something good, but a little more research up front could really pay off.

-Matt

I have nothing useful to add, but I am interested in learning a bit about this as well. Bonus that it may benefit my home market.

My CPA is Patricia Renner at Schumacher Accounting and Tax Service.

She and/or her family have a history of real estate investing. She isn't cheap, but she seems to be pretty good. She books up fast this time of year. Based on the discussions I have had with her I am left under the impression pretty much anyone in the office could help out.

Did I mention she gets booked up quickly this time of year?

If you can't find contact info in the usual sources message me and I'll send you a phone number.

I'm shopping for a rental property. I'm assuming you're outside my price range. Sounds like there might be several people on the board interested in learning more.

I have had good luck with Eve Wolfe at Capital Title.

As for contractors... I may have someone. I haven't worked with him in a while, so I'm not real sure what he's up to. He's not the cheapest, but he shows up pretty much when he says he will and has been pretty good about sticking to estimates and standing behind work. He is a one man shop, and does get busy and booked out.

If you need contact info, message me please.

-Matt

Welcome aboard Valarie.

As a techie, I have to say US Manager of Email Support sounds like a good position to be retired from. :-)

-Matt

I've not really found anyone "good" for counter tops. Especially after checking references. Even Lowes sold me junk once...

I feel the need to throw out a quick reminder to make sure the finishes you are looking at are consistent with the neighborhood. I've seen a lot of places being over-built lately.

For blinds, it gets pretty hard to beat the box stores at price if you have a window that is a "normal" size. A good handyman/carpenter should be able to trim down blinds to make them fit. (Note: Making blinds bigger isn't going to happen.)

I seem to recall my guy was charging something like $40 to trim and hang each window if he was on site to do something else as well.

Welcome to Colorado. We visit SW Maine every summer. Load up on the cheap lobster while you can!

I'll echo what everyone else said. It's tight, but not impossible. Colorado Springs seems to have more on the market that NEEDS to be fix-n-flipped.

-Matt

Welcome aboard!

The best advice for remodeling rentals? Don't over do it. And if it's not on sale, it's not the right equipment.

-Matt

I have done one Tax Lien investment just to see how it worked in my county. I'm not sure I would call tax lien or deed investing a "cashflow generator." Money can be tied up for 3+ years depending on statutes.

That being said, a fair bit of research can lead to some sound investments. In my experiment I was looking for something super cheap and treating it like a gambling and/or educational experience. It came down to finding the right property. This is what I was looking for:

- Usable lot and/or home. There are lots of 2 foot strips through the median of the highway. You don't want those. I found a half lot in a very established neighborhood with a two year tax deficiency.

- Viable exit strategies. This largely depends on the previous point. My objectives for the half lot were to offer to sell it back to the rightful owner for what I had into it plus a few dollars for my trouble, sell it to a neighbor, sell it to a developer, build a small footprint house and rent/sell that.

- Comfortable entry point. In my case, I was only going to put up money I was willing to never see again. (In this case, about $400.) Had I been more comfortable with the process I may have been willing to put in more. Based on the research I had done it looks like there is ample opportunity for a beginner to make a mistake and sacrifice their hard earned cash.

In the end, I think I did about 60 hours of property and process research and took home about $60 (about 15%) when the lien was redeemed. I seem to recall redemption took about 9-10 months. Had I put in a significant dollar amount the return would have been very notable.

But as stated, you really need to know the rules and process for your county/state. Here in CO, you would need to buy every year of tax liability until the end of the three year redemption. In my case, I was looking at a maximum of about $1200 of total potential liability, and then foreclosure/title costs on top of that (Estimated at about $3k using lawyers, or about $750 DIY).

And in some cases someone else may have one year of liability purchased, but not the next. That can muddy the waters a bit.

I don't intend to scare you off. I think there can be some money to be made there. But it is not as risk free or as easy as the guru's may lead you to believe.

-Matt