All Forum Posts by: Richard Updegrove

I live in the Denver area and I'm in the process of getting enough cash together for purchasing an out of state investment property. I like KC, MO and I'm also considering OKC. I lived in KC, MO 6 years ago so I have some insight into that market. I really like the idea and concept of the BRRRR method but it seems like it might be difficult to pull off on a long distance property while working full time. Does it make sense to buy a turnkey property or 2 to test out that market and really build up a solid team? My focus right now is on cash flow so that I can reinvest into other properties.

I'm in the process of exploring other opportunities for my 9 to 5. I would just change companies but still have the same type of job with better pay. I've been with the same company for over 5 years. I also want to buy at least 1, maybe 2 investment properties in 2020.  Will changing companies have a negative impact when trying to get a loan?  I'm hoping to try and pick up my second investment property in 3 or 4 months.

@Alex Jimenez I also live in the Denver area and started with my first rental last year. You should be able to find something with $30k for a down payment. I don't own any multifamily units yet but I'm always looking at the prices of duplexes. They seem to go for 450k+ in my area. I would suggest that you figure out what area's/pockets around Denver that you want to invest in. Also, begin building your team. You'll need a good real estate agent and lender to start. The lender can help you figure out what you can get pre-approved for. That will allow you to determine what you can afford. House hacking is a great way to get started. Let me know if you want a referral to a great real estate agent. Also, will you be managing your rental yourself or hiring a property manager? Good luck on your real estate investing journey!

@Joe Funari @Kristin Caras @Ali Boone Thanks so much for all of your input!  I've found a tenant via zillow rentals just 1 day after listing.  I'm in the process of running a background check and following up with the previous landlords but they seem like a really good fit.  I'm not going to be in the situation of renting to a friend of friend.  Thanks again for all of the feedback.

Richard

I'm in the process of purchasing a new home and turning my current home into a rental.  It's my first rental property and I'm pretty stoked about getting into the rental game!  A friend of mine knows of someone that is moving into our area soon and looking for a rental.  I will be verifying that they have 3x income, a good credit score and verify their rental history with the last 2 - 3 landlords.  Since this is my first rental and tenant I don't want to start off on the wrong foot.  Does anyone see any issues arising from this situation?  I haven't started taking any applications yet so I might end up finding someone that is better qualified.  Thanks for any input!

I'm estimating that I'll owe 235k on my current home when I'm ready to buy my next home.  I brought up refinancing back to a 30 year strictly for cash flow.  The home is in a very popular suburb of Denver where I should be able to get 2000 - 2200 a month in rent.  I've verified this using rentometer and other rentals in my area.  All the rentals in my neighborhood get rented in a month or less.  If I keep my current 15 year loan I wouldn't be cash flowing at all.  If I refinance back to a 30 year loan I should get a nice cash flow of at least 200 a month, possibly more.  The house is in great condition with a new roof and new AC that I had to put in last summer.  The previous owners did a great job remodeling.  I have about 125k in equity in the home.

Thanks for the feedback!  I didn't know about 5% conventional loans.  I'll have to look more into going that route for my next home.  It might make more sense to sell my current house but I still like the idea of getting it to cash flow + keeping it for the appreciation that we are seeing in Colorado.

I'm also looking to buy in the Kansas City market. I lived in KC for 7 years and moved to Denver about 5 years ago. I'm looking at SFH and possibly duplexes. I'm in the process of looking for a lender and putting together a team in KC. It sounds like Bank Midwest, Cornerstone and UBT could be options? I also personally bank with US Bank so I don't know if I should start there. Any suggestions would be much appreciated!

I live in the Denver area and I'm getting pretty serious about purchasing investment properties. My current home has been refinanced to a conventional 15 year loan. I'm thinking about refinancing again to a 30 year loan to get more cash flow. My current home would become my first rental. Also, I like the idea of finding a foreclosure in my area and putting down the minimum on an FHA loan for my next home. Is that possible? I've read that you can purchase foreclosures with FHA loans but I don't know much about that process. A 203k loan also sounds intriguing but I'm not sure how to go about that. I would plan on living in this home for around 2 years and repeat the process after refinancing to a conventional loan. My credit score is around 760 and rising. I would appreciate any advice or suggestions on my strategy.