All Forum Posts by: Travis K.

Rhett Tullis my gravitation towards apartments is based on a few aspects that appeal to me. For example: 1. Valuation method. Increase income = increase value. Decrease expenses = increase value. 2. Three sources of income: cashflow, amortization, and appreciation. Similar to most RE investment avenues but the cash flow directly affects the appreciation and does so on a larger scale than smaller multi family. 3. One roof for all units vs one roof per unit (extends to other systems also) 4. One transaction for many units vs one transaction per unit (or small # of units) 5. Potential for full time on-site management for larger properties 6. Potential for accelerated depreciation through cost segregation There are disadvantages, the main one being that they are long plays that take more time for substantial payouts. I also understand that other approaches have their advantages and work great for a lot of people.

Thank you all!  Great discussion and perspectives.  

@Nathan Allen nail on the head.  I don't want to miss an opportunity in my backyard.  If I'm always looking, when the market does change I'll be one of the first to know.

@Marc C. one of my top criteria for evaluating a market outside of Denver is a cheap round trip flight (if not w/in a reasonable driving distance).  Thanks for the insight on the brokers that send out mailers to every MF owner.

I am new to apartment investing and I'm ready to take down my first deal (in spirt, no actual deal yet). About me: SFH experience, working towards getting CO broker's license, wife is a residential broker, 10+ years of project management experience in heavy civil and commercial construction (projects ranged from $140M - $40k), degree in Civil Engineering, extensive business development experience, creative win-win negotiator, and I am ecstatic about buying apartments (it just makes sense on so many levels) I have connected with a local mentor/sponsor and we are looking for 50-100 unit buildings (Type C to B) along the Front Range. Finding a deal that pencils out is our biggest challenge at the moment. I am also doing market research in other parts of the country to identify markets on the rise and then set up networks that will support buying and operating properties in those areas. Currently, I have not fallen in love with any particular out of state market so my network is mostly made up of Brokers. If you have read this far...please let me know how I can help you. If you live in or are traveling through the Denver area, let's connect and grab a coffee.

Greg S. great way of looking at it. Jack B. I would also add that if you have $145K that includes headaches, another option could be to sell the property and do a 1031 exchange (or deferred sales trust) and put your money to work as an equity partner in larger deals. A 10% cash-on-cash seems reasonable plus you would be able to take advantage of appreciation and amortization when the property is refinanced or sold. The down side would obviously be some loss of control and access to your capital...but the headaches would be gone and you would have a potential for improved cashflow.