Author Topic: Minimizing housing costs (Denver, CO)  (Read 1515 times)

PaulCO

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Minimizing housing costs (Denver, CO)
« on: June 21, 2014, 08:15:31 AM »
I recently moved to the Denver area and I am currently renting a 2 bedroom apartment for around $1400/month.  I would like to reduce this expense considerably.

I am currently unemployed (semi-retired?) and I am looking into buying, renovating and renting single family homes (or potentially some other real estate variation).  I have some experience renovating my last house and would plan on doing the majority of the work myself.

So I am looking for mustachian housing options...  My current thought is to find a small single family home that needs some work, fix it and live cheaply and likely rent it out eventually.  There are some inexpensive condos and mobile homes available, but paying an HOA fee seems to make these unprofitable.

I am not looking for anything large or fancy (2 bed/1ba?).  I am a single father of a 1.5 year old (who I have around half the time), so it needs to be somewhat safe.  With my daughter, I am hesitant to most roommate situations.

I have $100K in savings to be used for a potential cash sale + renovations.  (I have additional non-retirement investments (mutual funds) that could be sold as well if needed).

To the questions...  Am I missing any low cost housing options to consider?  Any specific recommendations from people in the Denver or Colorado areas?

I have been looking for a real estate agent in the Denver metro area with foreclosure/REO/investment experience.  Any recommendations or advice would be appreciated. Also interested in building relationships with other real estate investors in Colorado.

Thank you for your time and advice,
Paul

brewer12345

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Re: Minimizing housing costs (Denver, CO)
« Reply #1 on: June 21, 2014, 09:05:04 AM »
I think you are 2 to 3 years too late for this, personally.  Is there some reason you want to pursue this sort of investment?

Angie55

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Re: Minimizing housing costs (Denver, CO)
« Reply #2 on: June 21, 2014, 11:51:41 AM »
Real estate is in high demand in Denver right now. Prices are above the 2005/2006 (whatever year it was) highs. I think prices have risen almost 10% in the past year alone, with them rising another 10% the year before. For instance in my area, Curtis Park/Five Pts a 2/1 Victorian with some updates would sell for around 220-230k in late-2012. Now they are selling around 300k in days. I think you may be too late in the game to jump in on this.


From friends buying houses most listings are gone in the first two days with multiple offers. Personally I think the prices are another bubble and unsustainable but we shall see. Good luck!

PaulCO

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Re: Minimizing housing costs (Denver, CO)
« Reply #3 on: June 21, 2014, 12:14:22 PM »
I have an interest in real estate, some experience and many of the required skills for this pursuit.  I believe I would actually enjoy finding, renovating and renting properties.  I like the flexibility in work hours over a typical 9-5 and the "passive" income eventually.

I don't expect to become exceptionally wealthy from this endeavor.  It seems like it could provide some modest income with a reasonable amount of time and effort.  If I can get better investment returns from a Vanguard index, I will invest in the index and find a better use for my time.

I also need a place to live.  I would like to purchase something (anything) that would either generate income or significantly reduce my housing costs.  If there are no properties in the Denver area that would be worthwhile to purchase as an investment, then I would be looking for options to just reduce my housing costs.

I figure that if I am considering purchasing real estate for any reason, I should gain as much knowledge to make a good investment.  I am working through all the real estate books at the library and reading the MMM and Bigger pockets forums.  Any other recommended resources would be appreciated.