All Forum Posts by: Zach Bagby

Hey all,

Im kinda in the same boat as a lot of you with one deal and looking towards the next. I'm in Englewood so not too far away and would be interested as well. 

Thanks, 

Zach

Hey Strom,

I bought a 4 plex a  year ago. Maybe the deal can provide some context for Denver

https://www.biggerpockets.com/...

Hey Chris,

In that area I would suggest looking on Google maps, checking crime statistics, and actually driving around where the home is street by street to get a feel for the area. If the numbers work and you feel safe there then go for it. 

Here's a link to my first house hack a year ago if it helps - https://www.biggerpockets.com/...

Hey Travis,

Here's a link to my first deal a year ago, hope it helps - 

https://www.biggerpockets.com/...

For areas the numbers cashflow wise work best in Englewood, Aurora, some Arvada, and ruby hill/Sheridan/arthmar(i don't really want to live there though). 

I've seen a few properties under or around 400k with a small kitchen in the basement but they typically need work. Another idea is to keep an eye out for houses with a carriage house, live in that and rent the whole house out. If you don't mind roommates go with what Chris is suggesting, but my wife and I like our privacy. I have a friend who bought a 4 bedroom, rents out 2 and airbnbs 2 (he will sleep on the couch for $40 a night) and makes money some months even with 5% down. 

Hey Mathew,

I'm also a software engineer, but I work in south Denver. Here's a link to my house hack: https://www.biggerpockets.com/...

Hope this gives you a better idea of what's out there. I've seen some decent small multifamily deals in the corridor between Denver and Boulder. It's still pretty competitive, but you gotta throw your name in the hat with the numbers that work for you. The bigger pockets calculator helps me alot, I try to be conservative with my numbers. 

Thanks @Taylor Roeling! We all have to start somewhere.

@Terry Mclain - I moved into it August 2018.

@Joshua Braskett - Thanks! That's the plan.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Englewood.

Purchase price: $760,000
Cash invested: $60,000

House hack, I live in one of the units

Income ~ $4,250
Mortgage ~ $4,550
PMI ~ $425
Flat fee utilities covers everyone's utilities
30 yr conventional fixed at 4.5%,
5% down owner paid closing costs = $38k
My unit would rent for $1400 easily (2br/1ba) making total income $5,650
Once PMI drops, mortgage will be ~$4,125

Repairs were upgrading electrical, fixing drain, fixing boiler, new shower in my unit.

Englewood, CO

What made you interested in investing in this type of deal?

The goal of this deal was to learn and get into the game. I know there are much better deals out there. I needed a deal that if I had to leave the state I could hire management and still break even. I want to prove I can do everything myself before bringing in partners.

How did you find this deal and how did you negotiate it?

MLS.

They wanted to sell without doing any work, we made a deal that they would cover all closing costs. Appraisal came in $20k over sales price.

How did you finance this deal?

5% down conventional. 4.5% interest

How did you add value to the deal?

Raise rents, take care of deferred maintenance. move into worst unit to fix and remove smell.

What was the outcome?

Living happily in it now. I have a few upgrades I want to do before I move out.

Lessons learned? Challenges?

Cash is King. I made 8 or so offers before I got this one and 7 of them were beat out by a much lower amount all cash. Facebook Marketplace is the best place to get potential tenants. Cozy.co works great for small landlords like me. Having a supportive wife is key :).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Melissa Smessaert - agent

I bought a 4-plex this year and I am looking for a good real estate CPA who is willing to answer questions and is based within Denver. 

Not necessarily true. Speak with a lender about loan options. Do you plan on living in you first purchase? If so you can put as low as 3.5% or 5% down. I'm in the same boat as you @Kathryn Mills. Just remember that the mortgage isn't the only expense you should plan for... You have maintenance, Cap-ex(replace roof, waterheater etc..), taxes, insurance, and vacancy. I plan to house hop from one small multifamily to the next with low down-payments every year or 2 which could change. Most of these loans require you live in the property for 1+ years and it has to be 4 or less units. I think with auctions you need to pay with all cash at closing. I haven't tried so I'm not 100% sure. I wish I could answer more questions but, I'm new to all this as well! Know that you are not alone. I hope to buy something in the coming 2-4 months as my first property! Good luck!