All Forum Posts by: Perry Rosenbloom

The community here is amazing. Thank you all for such thoughtful responses. I transitioned from active to a lurker once we bought our first investment property last year, and now hopefully back to more active (I'm sure a newborn had something to do with it, too lol).

@Bill S. - Great points. I really like the idea of finding a value added deal if we cannot find another rental.

@Adrian Tilley - Ah, my wife would not permit the sell and move into a rental right now :) Wouldn't work with our existing lifestyle and circumstances.

@Diane Bartley - Our current home would work as a rental, but again, not very realistic of us to move... Unless it was to a significantly better situation. And I love that mantra!

@Jon Holdman - Agree whole-heartedly. While I've considered a cash out refi, I certainly don't want to over-leverage... If deals were plentiful, I might consider it more. But since I already have enough saved for when the next deal comes along, why add additional risk, right?

@Jaden Ghylin - Can't move out of state as my business is here (plus, I love Colorado too much!).

One option that crosses my mind very occasionally is to move into an up/down duplex with an FHA loan and rent my current primary... But in the markets we want to live in, even in the most optimal of situations we would have a significantly larger monthly payment.

Hi everyone,

My primary residence is in a clear bubble. I live in Louisville, CO and housing prices have skyrocketed due to very limited supply and massively high demand.

I bought the home in December 2010 for 337 and a very similar home with a less desirable layout in my neighborhood just came on the market at 435. Everything is selling at, or higher than, asking price, so I am fairly certain it will sell in that range.

I have a 30 year fixed at 4% with 253k left on the loan.

Is there any way to take advantage of what is happening in my local market right now? Or just sit back and watch my 'paper' value go up and up and up until this bubble bursts?

I have one rental property purchased last year that is performing very well so far (28% COC return) and have enough saved to buy a second property... But good deals are hard to come by.

Thanks for any advice you can offer,

Perry

Thanks for the great, quick tip!

Welcome, Drew!

I'm over in Louisville and run an Internet Marketing company. We should get together and talk shop sometime.

I also just invested in my first property: A single family home in Greeley.

Any chance the Duplex you picked up was the FSBO (might have changed to a broker) toward the outer edge of town in east Lafayette?

Cheers,

Perry

Hey Marty...

Fancy running into you here :-)

How ya doing?

Mike M. - I expected more qualified renters to submit applications. But I was also in a slight pickle: I had about 15 inquiries/week, but could only show the home once as I don't own it yet, so our agent was required to be there for showings. I think if I showed the home every Saturday or Sunday to all the prospective tenants from the week, I would have had a larger pool of qualified tenants to choose from.

I'm not sure re: vacancy rates and the rent. I would imagine if vacancy rates climb, 1500 will be more challenging to achieve. However, it's an interesting neighborhood: Zoning laws makes it so I cannot easily rent to college students; however, it's close enough to the University that we received a lot of interest from Graduate students and families with one family member going back to school.

It's also in a good location for oil and natural gas employees. 2 minutes away from 2 major highways that provide access to sites further east and south.

Overall, I learned a lot from this and am thrilled to get the rent I was hoping to get. My gut tells me next time that I'd rather pay less for a good enough home that can attract a wider pool of tenants.

I'm excited to see how this all plays out, learn and apply my knowledge toward future deals.

Mark Ferguson - Thanks! After showing the home, I was seriously doubting if we would get our desired rent. Glad we did though!

Wendell De Guzman - Thanks! Would love to see your prescreening checklist. I've been investigating some lease payment options, including erentpayment.com

Roy N. - Definitely plan to! When it pours, it rains, right? :-)

Well, it's finally time for an update...

Due to a number of factors, we re-negotiated down to 144, plus about $1,500 of work to be done on the home, paid for by the seller, before closing.

We showed the house on the 15th after about 3 weeks of gathering prospective tenants. In total, I planned on around 15 parties showing up. Instead, we only had 4. 3 of them were unqualified and the last was uninterested.

As depressing as it was, I took the opportunity to film a video of the home on my iPhone so that I could show the video to any future, prospective tenants. That was the one opportunity we had to show it before closing, which is on the 27th.

I got home from Greeley at about 1:00PM. By 5:00PM, I had received 5 new inquiries on the home. Over the next few days, I received about another 5. I sent them all the video and an application and in total we received 3 applications back, all from qualified parties.

After following up on references, we decided on a party and just received their deposit, first month's rent and the signed lease agreement. :-D

Needless to say, I'm pretty thrilled. I've learned a lot from this experience that I'll take with me when we buy our next property. And I know there is a TON more to learn. And I can't wait for all the opportunities to learn, grow and adjust my strategies to maximize my returns.

But, so far, at least I can say my analysis of the property and the rent it could fetch was 100% accurate.

Mark Ferguson - Congrats, Mark! Great to hear :-)