All Forum Posts by: Tripp Howell

Welcome to BP Randall! Lots of great buy and holds out there. Margins are tight on the flips right now, keep your eye out for off market deals. 

If you don't need the extra cash, it's not worth giving up for a few cats. If for some reason nothing works to get the cats off your land, maybe you can find tenants who like cats and lease the house to them?? Can you put up a fence? 

@Brandon Donahue, cap rate is the Net Operating Income (NOI) / Sales Price. For the property you looked at with a 9.7% cap rate, that means, if the property costs $100,000 to purchase, it will generate $9,700 of NOI. For you, the buyer, the cap rate allows you to compare investments to each other. Generally, you'd like to buy at a higher cap and sell at a lower cap.

@Jaylyn Heartso @Benjamin Runtz Denver Metro area is a great place to invest for buy and holds right now.  Jaylyn you're right, Aurora is a good place to invest, so is Erie, CO.  Erie has a lot going on such as a hospital being built along with other development plans that will drive prices upwards.  Prices will be skyrocketing there in the near future. 

Denver is great for cash flow investments.

Pro: Tons of demand driving prices and rents up.  No sign of slowing down.  

Con: Prices are high. 

@Jaylyn Heartso Denver is a great place to be.  You can find great investment properties here, just have to find the right deals and make sure the numbers work. Let me know if you have any questions. 

@Sean Shirvan on average a house listed with an agent sells for 15.6% higher than selling FSBO. I agree with Kevin, this market is seeing bidding wars between numerous buyers increasing the price.

Hey Canneton, welcome to bp man! Yes Denver process are high, however the price is driven by demand, and that's not showing signs of slowing anytime soon. The popularity of the city is overflowing into the surrounding areas and causing rents all over to skyrocket. With mortgage rates as low as they are, you can enjoy nice cash flows, low mortgage payment and high rents. An example: I have a property closing in Parker on Wednesday for a young client who was out priced from buying closer to Denver. He doesn't mind living in the subarbs because he gets more bang for his buck, he can rent out one of his rooms to cover his mortgage payment - high rents, and he can jump on the light rail for an easy commute to work in the city. I'm seeing so many millennials do this because of these reasons. The light rail has made the suburbs an easy commute into the City and more desirable to the millennial crowd. 

And in your case, since you're in it to enjoy the cash flow, so long term, even if there does come a market dip in the future, you can ride it out. Historically, real estate has increased about 4% annually. Denver area has been nice recently with over 10% annual increases. Don't shy away from Denver area investments, just need to find the right deal for you. 

@Alex Day you can connect with locals in the markets you are curious about and they can provide you with market info about different neighborhoods. If you would like info on different areas in Denver, for instance, I would be happy to send local info for way. Another good way would be to search local schools and look at info they provide about themselves. That will give you a good idea about the neighborhood they're in. 

In my opinion, the best time to invest was a few years ago, the second best time to invest is today. With demand as high as it is and rates as low as they are, we are in a great time to buy. If you wait around a couple years, you'll most likely wish you jumped in today. Don't you wish you invested a couple years ago? Even if the market takes a dip after you invest, it'll eventually correct itself and increase again. We have already surpassed the prices before the crash in '06/'07. Russel Brazil has a great point, prices aren't being driven up by leverage. People want to move here and that's not going to change.