All Forum Posts by: Tanner Pile

@Ben Syzek

For long term rentals in Colorado Springs you will need to find a deal at 50% ARV (This is very hard) or do a large down payment of 25-35%. Long term rental numbers are hard to get cash flow with added in reserves for maintenance, cap ex, and vacancy. You're gonna want to be around $400k purchase price to be in a good area too. Anything below is likely in a bad spot. There are some pockets in this lower price range but they are hard to find and sellers won't let them go for the price you want often.

Do you know what purchase price you would be looking at? 

Also, local meetups are a great way to meet local investors!

@Benjamin Ying

Every one has given some great advice! 

As far as Colorado Springs you can definitely manage a rental from a far. Long term rentals are the easiest since you won't have to deal with cleaners and maintenance issues are relatively easy to deal with by calling someone. 

In Colorado it is mainly an appreciation market. $450k-$500k Purchase price you will have a chance to cash flow a few hundred bucks in Colorado Springs but it won't be much. 

The 1% rule is more like a .5% rule here. 

For your first investment I would aim to get some amounts of cash flow and not be in the negative. You can be negative for a few years and be okay but That is a better strategy once you have more experience with real estate. 

@Christopher Reynolds

In Colorado Long Term rentals are next to impossible unless putting 25-30% down and getting a few hundred bucks or cash flowing. You will need to go after a strategy that has potential to work or do a house hack. 

With a family and kids the best house hack is a house and cottage or duplex option. Or turning your current residence into a rental and buying another primary and living in it until you can rent it to cash flow. 

For pure investment the best strategies in CO are Co-Living and Furnished rentals in my opinion. Co-living I like a bit more because you have less money needed for furnishing a property and CO laws allow it in the major cities unlike STRs. MTRs Can work well too but still need to have it furnished. 

You will likely need to rehab for any strategy but Co-Living will be more bedroom additions which is less cost compared to kitchen and bath remodels that are more needed for furnished rentals. 

My friend @Miller McSwain has a ton of knowledge on Co-Living if you want to check out his stuff on how it works in CO

@Simon Packman What company do you use? I have a 4 plex built in 1900 and my policy is at $9,400. I have Allstate. It recently shot up last year. I tried shopping around but no one would take me since I had a sewer collapse claim last spring. I do have additional coverage for the sewer since I knew it may have issues before I bought the property. 

@Ryan S. Do you plan to manage yourself or will you be hiring a property manager? 

I'm more familiar with STRs in Colorado Springs. We are not close enough to the mountains to get much ski vacation travelers. I would expect December to March would be prime time for ski season peak and Summer time you would get travelers for hiking and biking. I have heard the summer time season peak is not as large as the winter time but I would still think you would get travelers looking to explore the Colorado Mountains in the summer. 

Make sure you know when each of the major holidays and events are in Aspen to price accordingly. 

@Eli Edwards Hey Eli, I have head of people doing this before. Some have done owner financing with an agreement to pay all interest and equity splits when the home sells others have done it where they do a quitclaim adding their name onto title with the seller so once rehab is done the seller can't try and cut you out of the deal. 

You're essentially partnering with the seller/owner in this scenario. Can work out very well. you just need to make sure you and the owner/seller are on the same page. 

@Zach Polen From what I hear there is still demand for MTRs. 

I have a few friends that do MTRs in the Denver area and they are doing well. 

Furnished finder has some stats on people looking for furnished spaces in Denver that may help. 

@Geoff Engel If you don't want to be a landlord but still want to be involved with investing you could be a private money lender for flips or in partnerships and bring the money to the deal. Make sure you do business with people you have vetted and are confident they will get the job done. 

@Sara Capra Contact @Koren Lavi He can help in the Denver area!

https://www.biggerpockets.com/users/korenl4