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All Forum Posts by: Scott Kelley

Scott Kelley has started 16 posts and replied 51 times.

Post: Very New - Colorado Springs, CO :)

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

@Lindsay Lundeen Lindsay, I've been looking for properties in Colorado Springs for about 8 months now, I've been looking at multifamily units for buy and hold and the biggest issue I've had is that the rents are relatively low there vs. the prices for the properties. Thankfully, people on this site have been incredible at helping me tease through the process.

Good luck, and keep in touch!

Scott

Post: Hello From Colorado Springs! Question about Multi-Familys for All The Experts

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

@Rob Flagg Welcome Rob, I'm in a similar situation as you. I currently have a SFH in CS, my family lives there, and I'm looking to return there but want to purchase some properties before I move (or at least as I'm looking to move). It sounds like we're in the same target market also - 2-4 plexes for military folks. I've also had to really focus on the cash flow and the benefits of the properties since I came into this with the mindset that I would only want to buy something that I would want to live in.

When would you be in CS? Maybe we can grab a coffee.

@Susan Pompea I'm going to be in town in a week or two, maybe we can chat a little too. Like you, I really like the downtown area and Manitou, but I know it can be harder in those areas because of how many pockets of nice places there are vs. "less desirable" ones. Maybe you can help me as I look for my next property.

Thanks, glad to see so many Colorado folks here!

Scott

Post: Login to OneDrive (Formerly SkyDrive) RIGHT NOW to get 100 GB added to your account

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Bummer. I'm right across the street from MS and they usually do these promos with a little "west coast bias" so I'm surprised I didn't know about it sooner! Oh well. Thanks for posting

Post: What if the market drops?

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

And, as I'm learning, the best method of investing is to find what works for you. Flipping definitely doesn't work for me, but buy and hold does. I'm sure it's different for you.

Post: What if the market drops?

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Wow, from what I've seen, Colorado is poised for a lot more growth and nowhere near a bubble. It seems to be one of the more stable (and affordable) areas to jump in, but yes, there is always risk.

Colorado Springs, for example, has had 2 or 3 years with significant home damage due to fires, floods, etc. Those people will be needing to find a place to live and some have chosen to not rebuild their previous places. In addition to that, the military continues to add troops out there. It's definitely not got the business power that the West Coast has but I don't think it's anywhere near the top end right now. My opinion anyway.

Regarding your question, this is why having multiple exit strategies is so important!

Post: Property Management

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Hey all, I'm just curious if any of you do property management on the side, or as a piece of your business? I'm just wondering because I'm thinking of adding a side business doing exactly that. I just typically have found most property management companies to be difficult to work with at best and I think I could provide a much better service.

If you do provide the service, what have you found to be the pluses, minuses and challenges?

Post: Login to OneDrive (Formerly SkyDrive) RIGHT NOW to get 100 GB added to your account

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Didn't work for me. It gives me options for up to 8GB of storage by setting up my new thing, downloading something and inviting friends. Too bad, 100GB would be wonderful.

Post: I just closed on my 9th rental

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

@Mark Ferguson Mark, that's awesome! My goals for the next couple of years are similar but I'll be looking in southern colorado. How did you finance your purchases? Would you mind sharing any more info on your pathway to this success? I'm just getting started and could use any help!

Scott

Post: 2% Rule, 50% Rule, in Colorado, etc??

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Thanks for the feedback @Jon Holdman ! That's exactly what I've been looking for and I've been just getting overwhelmed with additional information.

Also, thanks for the reminder on maintenance. I'm definitely keeping that piece in mind because I know it can bury an investor. I guess I was thinking that I could at least defer some of the maintenance with a brand new place for a couple of years, allowing me to invest some more capital in another place during that time. I'm planning to do the property management myself, at least for this place, but I want to build in enough buffer that I could transfer it to a management company if necessary.

I'll definitely post in the marketplace. I've been happy with my agent but it's obviously harder to get real deals that way. Especially when I'm working from a distance.

Post: 2% Rule, 50% Rule, in Colorado, etc??

Scott Kelley
Pro Member
Posted
  • Lacey, WA
  • Posts 52
  • Votes 4

Hi all,

I'm looking at buying my first cash flow buy and hold property (I own a property now but it just breaks even until I can move into it). I am looking in Colorado Springs, and every place I find doesn't seem to meet the rules that people recommend. None of them meet the 2% rule. I've found a few that meet a 1.2% rent to purchase price but that's it.

On the other hand, some of them DO meet the 50% rule. So, which do you consider more important? Are there other factors you consider? For example, one of the duplexes I'm considering that brings 1.2% and meets the 50% rule (based on the area) is being built right now, so it's brand new and would have minimal maintenance for a long time, plus would be attractive to renters. But it also doesn't have a rental history so that's hard to guess.

I don't want to get to the analysis paralysis stage so any advice you have for a newbie would be appreciated.

Thanks

Scott