All Forum Posts by: Trevor Kolb

@Mark Lucas Welcome to BP and Colorado! I recently went through the same process you are going thru in deciding my investment path to success, so if you ever want to sit and discuss any questions, please feel free to reach out.

My own path started with many VA loan issues that were unique to me personally, but for the most part I decided to research how I would best like to live in my investment. For over a year, I had rented a room from an Air Force LT, and fellow REI investor on BP, Joe Graeve here in Colorado Springs. During that time, after witnessing Joe's constant success with keeping the spare rooms filled in the house, among investing in other properties, I decided that a SFH would probably provide me with the most benefit for my style of control.

Multi-units require additional work that I am just not prepared to handle at the current moment. The home insurance, maintenance, tenants, ect. just did not add up to the ROI or risk that I could accept at the moment.

The SFH I purchased was a 4 bed, 2 bath home with a 1 stall garage attached garage overlooking the city. Though closer to the Airport and located on a busier street, it had the qualities I looked for in a SFH. 1 bed and bath is located in the lower half of the home, which I use as my Homeowners Hide-away. The remaining 3 beds and 1 bathroom is rented out as a Vacation Rental. This route works best for me as I work from home as a full-time insurance agent and generally Vacation guests are more interested in exploring than being in the house. This approach has also provided me an amazing income for the first month of partial booking (Aprox. $3k for Nov). The only pitfall I've experienced so far, seasonal bookings. My listing is still too new for a continuous and solid booking over winter but I'm sticking to my Vacation Rental game for the year and re-evaluating in Nov. to see if it would be a better strategy to M2M the spare rooms or not.

The choice for the Vacation Rental over the Roommate situation for me was all dependant on me working from home. While I did get my job completed while living at Joe's, the constant influx of roommates in and out of the home everyday would be a little disruptive at times. In your situation, I'd likely continue towards a SFH with enough space to rent the rooms to others.

Lastly, one thing I'd recommend avoiding is Renting your spare rooms or other rental units to soldiers in your unit. The mixture of landlording and working with someone can be a difficult process to handle if not handled correctly. 

Hope this helps! If you'd like to chat, feel free to message me anytime!

@Jim Thorton Sounds like you've built a solid foundation for investing, but my vision in your situation seems a little bit different then those expressed already. Since you've already envisioned moving closer to family and in with your in-laws, my focus would be to complete that transition once you've finished your refi on the current property. 

Once you've determined when you and your family will move, begin focusing on renting out the current house and establishing the property management team that can handle the home for you. Already, this gets you into the investing game with the current property, while pulling the equity out for another investment. Now, if you will be obtaining the in-law's property as an inheritance, before you begin investing your money into her property, ensure the paperwork for that is in place and has been reviewed by an attorney. Last thing you want to deal with is disputing property rights after investing money into it, should the worse happen. A "CYA" - cover your assets, if you will.

Personally, I'd take the equity from the refi and attempt to locate a nice multi-unit (4) to utilize for house-hacking, that meets your location needs. This would already set you up for 2 income generating properties before the end of 2017, of which will allow you to continue the BRRR strategy.

@Bryan O. I still expect each individual to be responsible for themselves and determining if they are capable of participating in the industry. Thank you for clarifying, however the initial post does address the fact that it is, as a whole, federally illegal. When being referred to as being "legal", I only intended it as interpreted at the state level, which has been widely understood. 

You're also very correct in stating that the economy is owned and driven by government. This discussion could lead all the way up to the whole Rothchild and the world is owned by a handful of people essentially. Avoiding that topic, and at the level in which I operate, the whole precedence for my listing isn't to advertise an illegal trade, but fill a need for visitors to find comfort with their stay that others aren't catering to. True fact, many investors into the industry these days aren't your average street dealers graduating to a public industry. They are filled with those very contractor's, military professionals, and federal employees you mentioned. 

@Account Closed That's absolutely correct, but at the same time, I'm not advertising Marijuana. Only an environment in which travelers may bring their purchase to consume safely. Truly, thank you for the warning though. 

This is the taboo I was mentioning before. It's so amazing to see the fear behind your words, all over a plant that was once as common to see as Alcohol. A plant, our own government recognized as medicine while shaming those who would pursue it's benefits. Shifting focus from the medicinal benefits, we've also shamed ourselves into an unhealthy habit of expanding our communities with materials that aren't all safe or healthy for us. 

Millions of Trees are harvested each year for our ever expanding society. Cities have destroyed the natural landscape of the world. We constantly poison our water, air and land through overdevelopment and expansion. In the end, we can't take money with us, but by the time we will understand this as a society (completely), it will be far too late. 

If you share a similar hope as me, then we can shift this destruction and heal our world again. Once decriminalized, removed from the list of schedule 1 drugs, and finally recognized for the benefits it can provide, Industrial Hemp can also change the way we grow our world. Homes can be built as healthy environments for families, hemp can be a great rotational crop for farmers, and it's ability to be processed into different materials is almost limitless! Over 2,000 known uses for a plant that has no psycho-active properties, but because of the whole reefer madness and the misinformation that has been passed out, we can't truly expand on this potential.

Anyways, Merry Christmas everyone! Have a great day!

@Michael Johnson The legitimacy of what I do is within an acceptable risk profile for what I can tolerate. Since Amendment 64 on the state level is designed to protect patients and their right to consume marijuana on private property, and thusly, I can also permit others to do so (Recreational Marijuana is also legal, as I'm sure you're aware). Since growing the plant was never a desire, the likelihood of asset seizure is significantly reduced. At most, the amount of medicine I have personally would get me a minor citation, maybe a night in jail (if they ever tried to enforce it) before my legal team (work benefit) would likely have me out the next day. Supplying the marijuana is also not part of the reservation, so everything functions as a normal Vacation Rental (taxed and all) and they are required to purchase their supply from one of the local dispensaries. My home simply provides visitors with a safe, comfortable place to smoke.

@Bryan O. Actually, it's quite mixed in Colorado Springs. Yes, we have 3 air force bases, 1 army base, and hundreds of contractors everywhere. Included in the mix are Veterans, like myself, who are attracted to the idea of medicinal marijuana becoming legalized because we understand how much our brothers and sisters in arms need relief from their pain, ptsd, and any number of other issues we experienced in combat. Many current military members have experimented with marijuana, so it's not as negatively viewed as you may think. The Federal issue comes to light for them to avoid participating while under orders, which can often be viewed as a negative feeling towards it. The first guests whom stayed at my home were 3 active military members, with their Father and Brother staying for the Army vs. Air Force games, and they decided to stay in my home when it was clearly posted that marijuana was present. They asked that I not smoke around them (very understandable, and not an issue) but stated they wished they could join, as they understood the reefer madness wasn't true.

To begin, I'd like to thank you for your time and interest in the topic of Marijuana and Vacation Rentals. Though a lengthy introduction, I felt it would be best to give everyone a solid base to ask questions and begin a solid discussion. Please feel free to provide feedback below, ask questions and contribute to a positive interaction. If you would prefer, feel free to ask any questions via PM if you're uncomfortable with the topic. For many years, the fear of the topic of Marijuana had prevented me from approaching others, don't let this be the case for you!

In Colorado, although the state has passed Amendment 64 in regards to legal marijuana (on a state level), there is no legal place to consume it besides the comfort of your own home. A market that remains widely untapped.

Some local Cannabis Clubs have begun to spring up in order to fill the need for a place Renters and other non-homeowners can safely consume their medication (Yes, it is medicine and the US government holds patent 6630507 that even says so). However, because we are all so "wholesome" and "family-oriented", these clubs are continuously under attack for doing just what they are meant to do. Keeping them out of Rental Properties and out of the public.

It is my belief that everyone has the right to make the decision to allow or not allow something that is still Federally illegal on their property. If you do not want it in your home, it is recommended that you add a clause to your Lease & Rental Agreement documents, as well as ensure you ask the question verbally to any applicant of your property if they smoke it. Do your due diligence and from there, take the necessary actions against those that violate your terms. No one can fault you for holding onto your own values and rules if you still don't accept Marijuana in your home. 

Personally, as a medical patient, military veteran, and after being involved in 2 severe car accidents, the ability to accomplish more each day because of the benefits marijuana gives me a great sense of motivation to be successful. The "legal" prescriptions available to treat my Degenerative Disk Disease and Spondylolisthesis would leave me unable to get out of bed, sick to my stomach, and even worsen my pain. After coming to a better understanding of the plant, it's become apparent the things we've learned about Marijuana isn't correct. Since waking up this morning, among getting ready for the day, I've read through 10 BP forums & 2 Blogs to refresh my knowledge and learn more, updated my vacation rental listings online and I'm only a couple hours into my morning. This was all done after medicating with marijuana and being fully aware of what I need to accomplish today. Maybe it's just me, but my medication provides me with an elevated interest in learning and expanding my investment knowledge with great focus. After this post, I'll continue to research additional REI methods, techniques, and suggestions for improvements in my investing path.

As an investor myself, I've chosen to fill a Niche in the Vacation Rental market by providing the "Marijuana Refugees" a safe place to relax during their stay in Colorado Springs. Upon closing on my first 4 bed 2 bath home using the VA home loan, I've invested in furnishing my home for vacationers to enjoy and have had some success. The biggest challenge so far has been winter reservations slowing down to a crawl.

To date, I've hosted both non-smoking and smoking groups of travelers. Part of my house rules includes a 21 y/o age limit. Guests are limited to smoking their Cannabis in the Kitchen area only (tiled area, in case of spillage) & with the window open (weather permitting). The non-smoking guests were all very respectful of my home and my choice, and even were interested in discussing the topic. The feedback from my guests has been very positive and I'm happy to host them during their stay. 

Since hosting via Airbnb, I've been researching the other local listings for comparison and discovered that most local Hosts don't mind their guests using marijuana, however they will be typically limited to smoking in the outdoor areas of the property.

Like Tobacco, it's very understandable to enforce an outdoor smoking rule. The smell of marijuana is amplified when smoked and some people are truly offended by it. Some furnishings can absorb the smell and it can be a pain to eliminate, but not impossible.

With the recent expansion of marijuana into concentrate form (Aka. Dabs, shatter, wax, etc), the smell isn't as intense. By extracting the plant's cannabinoids into a more pure form, the smell of weed is significantly reduced to such a manner that most don't even notice in a crowded room. They have begun to become so stealthy, they look just like the little vape pens you purchase at the gas station for your nicotine fix. It's likely you've even been next to someone smoking it and didn't even know it!

Alright folks, truly I appreciate you reading through such a long post. Please comment any questions you may have or just throw in your own personal experience. Would love to hear your opinions and views on this topic. 

Well, after reviewing the conversation thus far, the question of who you use as a PM company comes to mind. I'd recommend not contacting the tenant directly and ensuring the PM is handling all further inquiries and requests from them. Isn't that what they are paid to do? Secondly, ensure they are searching for an alternative tenant while the current one begins their transition to home ownership (Isn't that the game we're all in? Helping people get into their own house while financially benefiting ourselves?)

If you handle this professionally, take emotions & the veteran bias (another veteran here...) out of the equation, and treat them like you would like to be treated in their shoes, you'll possibly gain a valuable referral to find another tenant. 

Not that it's likely to get you Blacklisted for just enforcing the lease they did agree to, but overall, there's always another tenant to fill your vacancy. Thank them for their loyalty & hopefully you'll be left a pristine property to immediately turnover and avoid any loss. 

Do you really want to worry about how they will treat your property for the remainder of the lease? If my landlord just messed up the purchase of my first home.... not saying I'd trash the house, but my desire to take care of it as well or inform them when something is broken will flat-line. Losing a deposit would be a drop in the bucket at that point with how upset I would be. Not saying everyone is vindictive, but it's a tough crossroad that you really have to tread lightly on.

@Patrick Flanagan The pain and struggle from being discouraged is a familiar one for many beginning investors but the key to success is consistency. Spend a dedicated amount of time (hour or two) every day and review EVERY property address you can get your hands on. If that's only 1 or 2, don't discourage. The market will always produce more leads, but once you've found the house that meets your criteria (price, features, location, etc) make an offer. Every step just gets easier from here.

To share my personal experience (so far), I just recently purchased my first home (VA Loan; SFH; $197k; $1500 down; 4 bed, 2 bath, 1 car garage) as a starter home. Honestly, didn't run the numbers prior to purchasing because I accepted my Realtor's advice as a fellow BP member and agent when I told him my requirements. Since closing, invested $8k into furnishings to house-hack via Air Bnb & other Vacation Rental sites. My only regret, not having a home available for the Summer bookings because winter bookings have slowed to a crawl at the moment. This has prompted further research to other options for sourcing my revenue.

Part of my reason behind Vacation Rental vs. a room-mate situation like yours (one I recently experienced, prior to my purchase), is because I work from home. Having a room-mate in the house for the full 30 days, bringing guests, cooking, and doing whatever else people do during their day at home, would cause more chances to be disturbed whilst working. Guest's traveling from out of town however, will spend most of their time out of the home and exploring the area, leaving me to a pretty peaceful work day. When they return home, its often to shower and sleep.

Circling back to your needs, follow the numbers to success. You've done plenty of research into the investing to-do's; now just go out and find the deal. Call every realtor in the area. Personally, I didn't sign with anyone, but asked everyone for leads that met my house hunting requirements and offered them the commission if they brought the deal to the table. Thusly, they had a reason to find what I wanted prior to getting the contract for the commission. This weeded out the Realtors that aren't interested in expanding the industry and provided a focus point for me to work with Agents that have a sense of Customer Service and Satisfaction (Shout-out to @Colin Smith for the amazing work & not having to go far from our own community) Wholesalers are also a great way to find deals. Call the "we buy houses" numbers all over town and ask what they have to sell. If they are really hungry, give them your requirements for a property and maybe they'll add that to their own marketing strategy (can we say "free marketing"?) Someone always wants a piece of the deal, but as long as your numbers co-inside with your desires...pull the offer trigger!

@Dan Host - It's almost refreshing to know I am not the only one finding difficulty moving forward. However, I have finally bought my first property using the V.A. Loan Program and have been pretty successful in using the extra space as a vacation rental. This has definitely become a learning process, as December has really slowed in bookings. Because of this, I've thought more about adding my listing to a few additional sites that I had not previously thought of joining.

As of today, I've been feeling like Real Estate investing will be further delayed by my own lack of drive to move forward. Just moments before logging online, my focus was in search of a new or better career rather than furthering my education. Your post has helped me realize that we all have moments that we just spin the tires and feel like we aren't moving forward. The best thing to do now, is focus on what the next step is and work on completing that step. 

You've obtained your license, and now you've set your sights on obtaining a good deal that gets you in the game. Have you outlined your standards for the first investment property? How much you're willing to place as a down payment? What type of property do you want? Single Family or Multi-Units? What part of town do you feel most comfortable investing in? Who will you market your property to, after you've finally obtained the Buy & Hold property?  

Honestly, these are just some of the many questions to start writing down and thinking about. Once you've got a solid base for the type of property and price you want to be in, get out of your head and go talk to everyone and anyone you can find that can point you to the house you need. Market yourself to everyone willing to either send you a deal to analyze (other brokers & agents, contact wholesalers) and begin marketing to Homeowners that also meet your search criteria. Go out an drive around the neighborhood you want to be in and literally look for homes you could see potential equity in purchasing. 

Overall, once you're confident in the numbers and how they will work for you, make the offer and just start knocking out each item on the next list you make. Inspections, quotes, insurance, contractors, material costs, etc. It's all just one step at a time, and knocking out each item on your list every day :)

Also, I highly recommend meeting with @Norberto Villanueva to learn more from his vast knowledge base. It was a very educational meeting when I had the opportunity and truly appreciated his time to show me some of what he's developed over the years. Keep up the awesome work! 

I'd recommend @Colin Smith for your needs. He has helped me purchase my first home and has excellent investor knowledge with a great approach! :)

@Paul Munly: Your insurance company uses a Replacement Cost Estimator to determine the value in which to insure your home. It's based on many factors including builder's materials and other typical costs with covering your property for rebuilding. Their estimate is NOT a valuation on your home, merely the estimate they associate with replacing your current home based on your homes current size and building materials. In truth, most companies will require the property to be insured for at least that value, some, like Esurance (the company I work for) will allow you to insure the home to 70% the RCE value. Though you would have to agree to select value coverage (Agreeing you knowingly wish to under insure your home based on the value provided). 

At least with my company, this is how it works. I cannot speak on behalf of others, but this is typical practice. You can tell them the amount of coverage you want, and the company will determine if they can meet your request. After that, it becomes your decision to insure with them or not. It's really not about getting the extra premium from you, but for them to determine a way to value your home based on the information provided. As an insurance agent, if I spent any more amount of time in actually determining your properties value, it would be a waste. This would only increase the premium's an insurance company would charge because we would have to require additional underwriting.