All Forum Posts by: Theresa W.

If I had a dime for every Denver property that has a crack in the foundation...

How far does it go?  Up the exterior wall?  If it's brick, can you see shifting?  How's the level on the first floor?  Got any doors that won't close?  Did the sellers say it's been there forever, or is this a recent crack in the past few years?  Any signs of water on the floor near that crack?  My rule of thumb is that old cracks are usually not a problem, but if it fails any of my criteria above, it could be expensive.  Not a deal breaker though.

Anson's right, it's near impossible to tell from a photo.  In my opinion, you don't have to assume you know every repair cost to make the offer.  Get it under contract and then, dependent on your inspection/engineer, ask for a price modification.  Go for it.

Hi Brian,

If you don't have a re-lease fee in your contract, I wouldn't arbitrarily pick a number to charge her.  With my tenants, they are responsible for rent up to the point that I sign a new tenant.  If it were me, I'd ask her to give her notice (it will be short of whatever your minimum is) and tell her that the day after she moves and you confirm that everything is in order (move out inspection, damages, cleaning, etc.) then you'll begin showing it to prospective tenants.  You can even help her out by advertising it early and scheduling an open house, IF she can solidly commit to the move out date and leaves it in good condition.

I'd emphasize that you're willing to let her out of the lease even though you don't have to, but she will be absolutely responsible for rent until the date of the new lease.  This means it's in her best interest to leave it in perfect condition so you can turn it around quick.  This also means she pays rent on the first of the next month, whether she is there or not.  Save the deposit until you re-lease.

In my opinion, there's no use in sticking someone with the entire year's rent.  Things happen and renters move.  Just cover your bases, make it clear to her, and eliminate any vacancy (financial loss, that is) between her and the next renter.  Good luck!

Something I'd consider, but haven't done, is to install a cabin grade wood and face nail the boards.  This only works if you can accept a very rustic look, but I always thought that cabin grade is cheap (but requires extra labor for install and cutting tongues off) and to replace boards for damage would be easier than traditional wood.

Just a thought.. With the look of older floors being in demand these days, it could be a selling point for your buyers and minimize your maintenance in the future.

Hi @Mitch H. 

Someone once told me that before I invested, I should be knowledgeable enough about my target neighborhood to know the going rate vs the list rate of the price per square foot when I see any given home for sale.  What will you say when someone calls you up in 4 months from a letter you sent?  How will you demonstrate the knowledge that your numbers are more accurate than what they've proposed?

In your quest to get to know the neighborhood, consider starting a spreadsheet that you can save comps that you find on Redfin: list price, sale price, price per sq.ft, bed/bath counts, age of home.  Once you get an idea of what things are selling for, you'll be able to have an off-the-cuff conversation with that potential seller and convince them to accept your terms. 

While you're at it, I also keep a list of CL rents in the area so that when I see a deal, I generally know what it can rent for.  Pretty soon, you'll have all those numbers in your head and will be able to do quick math to analyze a deal.

Keep at the letters and add a little personal touch like @Jean Bolger said and soon enough, someone will remember that nice young man that wanted to buy their home.  Good luck!

Hey @Terry King , welcome to BP!

I'll give my recommendation for @Micki M. who is a broker and owns several rentals (and a few flips) herself. I just closed on a duplex in December that she found for me in an area of the market that nobody was looking at.  She's great at being able to quickly calculate the potential of investment properties, too.

Good luck!

Holy cow, Congrats @Bill S. !

I would guess that there's a minimum value to a lot like that, just in the water & sewer tap fees that are already paid.

Looking forward to hearing that you're successful in more deals like this.  As they say, "Rinse and Repeat."  (There's more little old ladies with unwanted property out there. LOL)

See you there!

Thanks @Micki M. !  Let's be friends and we can drive around Denver while I pick your brain about Clearwater.  Win-win, no?

Hope to see you at some of the upcoming Denver Meetups as well.

Hi @RIck Montanari 

I'm your target customer and I've been looking for land to build a Tumbleweed tiny home here for more than a year.  @Troy Sheets and @Bill S. are right on about the upfront capital costs - $50k land, $30k water/sewer tap, $150/sf construction and you're already into the $180-$200k single family range.  I've looked for scrapes that come with a w/s tap already and think there's some potential there, but you're already back up to an average of $75k - almost the same as raw land with the new taps.

I think your best bet might be to find a community willing to rezone a large parcel to try out the density you're describing. A PUD zone would allow this type of flexibility and might get you reduced tap fees akin to a condo rather than SFR. I also think there's some value in going after property owners with surplus land (~2,000-3,000 sf) that would be willing to subdivide, IF you could get the city to approve a sub-standard lot size. With median home prices in Jeffco hovering near $300k (and higher in western areas and Boulder), I think there's an opportunity to market to young professional couples, singles, and some empty nesters.

I dig the concept and would love to help if a former city planner like myself could be of assistance..

I also like the areas heading downtown from the Fastracks lines, but have shied away from any property that is within a 1/2 block of the actual rail.  If you can hear a train every 8 minutes or some small increment like that, I think there's a negative impact to quality of life and to a potential exit strategy of selling to another homebuyer.  On the other hand, if you're targeting a short hold to sell out to a developer who's gong to scrape the entire block for a TOD, that could be a legit strategy as well.