All Forum Posts by: Sara Reeder

We are currently LP on a handful of flips in/around Denver, but looking to diversify with rentals (and to lessen the tax consequences of those flip capital gains). Our money doesn't go as far here so I'm starting to look outside of our bubble to find some cash flow.

I don't know of any local (to Castle Rock) meetups, but I used to attend IRROC in South Denver and it was a great resource (I was a property manager in the Metro for 8 years). https://irrofcolorado.com/ I think they moved their meetings to Virtual during Covid - I'm not sure if they've switched back to in person yet.

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Originally posted by @Adam Lacey:

I ask for the financials immediately. The broker may not have them available, but don't be afraid to ask. You're buying a business. You deserve to know how it's operating.

Thanks Adam! Also a side-note, I see you're in Castle Rock also. Small world! Are you investing in state or OOS?

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Good evening,

I am analyzing a potential first deal. It's 6plex and seems to have great potential but the listing is missing a lot of key information that I need to run accurate numbers so I'd like to request the T12 and other important information from the agent so I can complete my due diligence. Is it fairly common to request that information without an offer or contract on the table? When do you request financials, leases and other key data?

I'm hoping to take this down before the end of the year, but am a bit gun-shy so any guidance would be greatly appreciated.

Thanks in advance for your help!
Sara

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Originally posted by @Daniel Zwick:

@Sara Reeder Sorry, forgot to mention the service providers. For our rural units we actually pull a lot of our service companies from smaller towns as they tend to have more availability than those we use in the bigger cities. It may take some time to find some you like but in my experience it hasn't been a major issue. The biggest draw back for me has been lack of property managers in rural areas but I've found some real estate agencies take on that role too. Not sure if you plan on self-managing or not but figured I'd mention that.

Thanks for your input Daniel! I think it would be difficult to self-manage since we are out of state so the property manager aspect was concerning to me; however, I researched agents in the town nearby and there were several that listed mentioned management services so I may reach out to them first to get their opinion. Now that I type that out, that should have been my first step. Ha.

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Originally posted by @Alecia Loveless:

@Sara Reeder Two things that come to my mind is how many other rentals are in town that would be competition for this property? Also are there any realtors or other people in the industry you could talk to to see how much call there is in the immediate area for rentals.

A couple more things. Does the town put out any demographics or statistics on the amount of people who own homes, rent homes, graduate high school.

Is there Any industry besides AG that you could advertise your rentals in? Grocery store, library, hardware store, diner/restaurant. Are there churches you could connect with the ministers or priests in to let them know you have rentals. Do high school kids typically go to college, move away, continue living with parents on the farm? Just a few ideas for attracting tenants that I use besides my local Facebook groups. In my small New England area a lot of the local billboards in stores and restaurants still provide great results.

Excellent suggestions! Thanks for the response Alecia!

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I am in the process of analyzing a fully occupied quadplex in a rural community in Iowa. The numbers look good, but I'm concerned about vacancy time and service providers for such a small town...Anyone here investing in rural areas? We are fairly familiar with the area since my husband grew up in the next town over and we both grew up in rural areas of Iowa, but I'm trying to set some expectations since I've been a Property Manager in Denver for 7+ years (so a sliiiightly different market). Ag is the main industry. Tiny town (300+ pop). It's about 20-25 minutes to 3 larger (still smallish) towns and about an hour to Des Moines. This would primarily be a Cash Flow play as I wouldn't expect a lot of appreciation there. From the listing, it's fully occupied, but 3/4 are on month to month leases. Could that cause issues with financing?

What am I not thinking of?

Thanks in advance for your input!

Sara

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All Forum Posts by: Sara Reeder

Sara Reeder has started 2 posts and replied 6 times.

Post: When to request Financial Docs for a multifamily deal

Post: When to request Financial Docs for a multifamily deal

Post: When to request Financial Docs for a multifamily deal

Post: Investment in a Quad in Rural Iowa?

Post: Investment in a Quad in Rural Iowa?

Post: Investment in a Quad in Rural Iowa?