All Forum Posts by: Roman Puzey

Hey @Roman Puzey. Ok, well if you approval number is 850k but you can only afford 650k, what is the reason for that?

I don't disagree with @Ben Einspahr as he seems to know more about the region, but words like nuances make me nervous. I don't like to navigate nuances and peculiarities of a region unless the profit margin is pretty huge. 30%+ CoC for example.

And he isn't talking about Denver, but surrounding communities. Is that something you want to do?  Everything Ben said makes sense. Get out there and meet some people and see what's what.

What I am most worried about is you getting in over your head and you can't make the mortgage on your primary home if your STR doesn't do as well as projections.

I am more conservative than a lot of investors. Many roll the dice and win. And lose.

So, make sure you have all your ducks in a row. Research everything and try to buy in an area that is more stable when it comes to regs.

Good luck man!

Hey @Roman Puzey, Denver is a tough market as the city and county has a lot of rules and they keep restricting STRs.

Here is the site with all the info - https://www.denvergov.org/Gove...

As far as performance, are you trying to get the STR part to pay for your primary as well? From what I have gathered from your post, you can't afford to buy the property based on your DTI and you need to rent the basement/ADU in order to make the payments.

If that is true, then I think you are not really in a position just yet to buy something like this. Especially in an area like Denver that could restrict your ability to rent it short term.  I hate to be a downer, but that is what I think.

Will the LTR pay for itself? Are you taking a HELOC out on it for the down on the new place?

@Roman Puzey The best place to buy a duplex in Denver is where you can afford one. The market has certainly shifted, but multi-families still ain't cheap.

Also, be aware that cash flow is going to be tough with you financing at 6-7% rates. With Denver historically appreciating 6% annually for the last 40 years, you still look good for a long-term buy and hold, and rents will eventually catch up to your static mortgage payment, but it's important to have the right expectations. 

Personally, some of my favorite areas that aren't crazy ... Englewood near Swedish hospital, unincorporated Adams County just northwest of downtown Denver, Lakewood-ish area (hell, anywhere on the west side of I-25 or north of US-6 is nice if you can find a duplex at your price), and Colorado Springs if you're open to going a bit south.

Good luck!

Hey @Roman Puzey, 

Checking in from FL….I come out to Colorado every year and love learning about the real estate when I come for leisure!

My question …financing 700k at 6% is roughly $4,200 then add on another $1,000 a month for insurance and taxes to get you up to $5,200 mortgage payment. Is it feasible in your market to be able to rent out a side for that much money $5,000+ and live for free or significantly offset your living costs?

What am I missing? These numbers would not work in Florida. Curious to see what your financial goal is for this!
 

@Roman Puzey

$850k is solid for a purchase price for west Denver. Would you look to do any renovations? or have it rent ready? 

I think Fort Collins has more interest to people then Greely for Northern Colorado be cause of Horsetooth Reservoir. I know one person with a Greely rental (small SFH) and it is not doing as well as they had hoped. However, as long as the numbers still work for the area and you budget for vacancy, cap ex, and maintenance it can be a great deal.

 What is it that you are looking to get out of your duplex? What's the goal? Appreciation? House Hack? Short Term Rental? Anything else?