All Forum Posts by: Steve Burrell

Thanks all!  As for selling it, we have kind of a sentimental attachment. It's in an area of Denver that we would like to scrape and retire to later. Also, it's SO low maintenance.  It rents in a flash and we know it inside and out.  That has it's own value.

We already have a HELOC on our own home, which I've used for 2 deals. This would allow us to break the cycle of leaning on that. We're already refinancing 2 of our other properties this year at about 30K a pop and LOWERING those rates. This would be a slightly higher rate, and would kick things into high gear.

And yes, we only buy and hold. so BRRR for everything.

Curious how others would handle this situation.

I’ve purchased, rehabbed, rented and refinanced several homes in the Denver area. But, our best cash cow has been the home we first bought for ourselves in 2012 and now rent for $2200 a month. We are currently cash flowing close to $1000 per month on this one door alone. It also has more than doubled in value.

We have yet to tap into it, since our initial rate as a primary residence was 3.75%. But, with rates at 4.125% now, we could easily cash out 100k (even more if I wanted) for even more deals. That would, of course, eat into the cash flow to the tube of about $375 per month.

Am I overthinking this? Should I OBVIOUSLY take the cash? Is there an argument for keeping my lower payment and huge chunk of equity intact?

Any input would be swell!

I'm a current Colorado Licensed RE broker and I need s a new place to hang my license. I only use my license for my own investments, and occasional sales to friends and family.  My current company is moving to using only full time brokers, which I am not!  

Does anyone in the Denver area have a recommendation for a new brokerage?  If you know of their splits/services/whatever...bonus.  

Thanks!  

@Dorothy Butala I’d like to connect about Erie! I’ve been looking for info about properties the area.

Curious who’s doing what, and where. How far could a number like $50,000 could go in different parts of the county? I also wonder what different strategies people are using. Thanks!

Def use a handyman.  Great resource to have for simple projects like that.

@Bill S. Thanks Bill! I see you’re from the Denver area as well. Do you have any recommendations for a lawyer?

@Jake Stuttgen rent is typical, but definitely more than the place would normally demand as is. But an extra $200 or so a month helps in mitigating risk on my end. ARV if rehabbed to a decent level (40-50k?) would demand $330,000 on the low end.

If he left, I would do just that. Rehab and refinance. But what makes it most appealing is the low cost of the property + great cash flow all paid up front. Seems like a no brainer, but I don’t know if I’m overlooking anything.

I would pay 20 percent down and finance traditionally.

Last year I bought, rehabbed and rented a home in the Denver area. The next door neighbor got my information, and contacted me a few months later. He’s going through a divorce, and currently in chapter 13 bankruptcy. He is court ordered to sell his home, and would like me to buy it and rent it back to him.

This has been a few months of discussion, but here is the bare bones of what we landed on as a possibility.

$200,000 purchase price (it is worth about $35,000 more, and is in poor condition).

He offered to pay $2000 per month, this would cash flow roughly $850 per month. $2000 deposit

The first year would be a one year lease, paid in full using funds from the sale of the house. He will still have a good chunk of change left.

The house certainly has some issues, I’ve toured once. I will have it discover any BIG issues that I can’t see with an inspection. But let’s assume it’s ok.

At first glance, it’s seems like an awesome deal. Even if he bugged out after a year, I rehab and recoup major equity. I know the neighborhood, and it’s a sold investment at $200k as is. And with a year paid in advance at a solid cash flow. What more could you ask for?

So what am I missing here? I certainly don’t have the experience most people reading this will.

Thanks for your input!