All Forum Posts by: Scott Emsley

On the main BP page, the #1 trending discussion today is: This is Not the Real Estate Environment for Rookie Investors. My current partner and I are rookies, and we're analyzing the deals anyway. 

Here's the current layout. Cash flow is King to me. My partner likes some cash flow, but mostly BRRRing out her cash (down payment, closing costs, and rehab). I am mostly the sweat equity, she is mostly the financier, but there's overlap in both. 

I found a deal to purchase several duplexes in small town KY. I think the deal looks good. There are numbers that I'm confident in: 

• - Cash flow per door = $298 ($596 per duplex)
• - Cap Rate = 8.56%
• - Cash-on-Cash ROI = 18.53%

Then there are the numbers that I am (conservatively) speculating about:

• - Rehab cost total = $50,000 + 10% extra for unknowns
• - ARV per duplex = $179,000 - 210,000

This is a big investment for both of us. I've got a bit of analysis paralysis, and plenty of folks saying "don't do it because of ...(fill in the blank)". However, both my partner and I have stable W2 incomes, and so I think that now is a great time to buy, regardless of COVID, presidential election, economic recession, etc. Also, my crystal ball is broken, so I don't know what the future holds, and I've never been a "time the market" kind of investor. 

What could I be missing? If my partner doesn't want in on this deal, should I proceed without her?  Without her, I could only afford to buy half of the available duplexes. What reasons should I have to jump in sooner, rather than later?

Good to see someone from the Western Slope has already replied. I would like to second her sentiment. I'm a Realtor and investor here. I am especially biased to Fruita, CO. It's a less common play than I've seen on this site, but I think multifamily new builds are the best bet right now. I'm getting pretty darn close to the 1% rule with my new multifamily build, and this area has been continuing to have great appreciation for the past several years and in spite of the pandemic. 

@Mike Wilkinson yes, that's about all I can find as well. It's slim margins here, but I think the market is slowing here (and that was happening before the Coronavirus). I think the path of development is to the northwest. The Redlands were the hot area in recent years, but I think those prices got overinflated. Now my preferred area is Fruita and beyond

Good to know there's a new wholesaler here. I'd love to connect with you on here, and maybe even in person. I'm an investor in Grand Junction and surrounding areas. I'm also a Realtor with Berkshire Hathaway HomeServices Western Colorado Properties.

Great! Let me know when you're planning to hold another one

Looking forward to a future Meetup. When is the next one?

I live, work, and invest here in Grand Junction (maybe all my eggs are in one basket?). But I think this post from 12 years ago is still true. I'm a Realtor and I personally love to invest in multi-family properties. We have the same challenges that every investor market has, but I think there are great deals to be had. 

Thanks everyone, great tips all around. I'll follow-up and let you know how it goes.

Two years ago I purchased vacant land in Grand Junction, CO that is zoned so that I can build commercial, residential, multi-family or any combination thereof. According to the building codes, my lot is just big enough to build a four-plex. I've got an architectural design picked out, a contractor selected, and I've got the family ready and willing to move into one of the units. All systems are a go... except financing. I've got some money tucked away for a down payment, but nowhere near 35%. I was hoping to put as little down as possible, and then refinance into an owner-occupied conventional loan once it's built. I suppose if this stuff was easy, everyone would do it. But what options are there for me other than a hard-money lender?