For those of you that have been impatiently waiting in agonizing pain for the progress on this Buy + Hold Flip, this is for you.  (Oh and, for those that are just the normal folk in the world that may have stumbled upon our blog) — Here we are at Day 3 of Pete’s Buy + Hold Rental Property Renovation. Let’s take a quick look back at all items on Pete’s To Do list for his home.

1. Tear off all wall paper
2. Paint the entire house, including ceilings, walls, baseboards and doors
3. Fix the garage
4. Put up a 6′ fence along one side of the house
5. Tear up carpet and put new carpet in the basement
6. Renovate all 3 bathrooms (new toilets, shower, vanities, replace floor in 1 bathroom, fixtures)
7. New fixtures and hardware throughout the home (door handles, hinges, light fixtures, faucets)
8. New kitchen stove
9. Clean up outside
10. Paint the shed in the backyard

His budget for all of this was $8,365. Stay tuned to find out how his budget turned out, the Dos and Don’ts for next time around and to see the finished product of this Rental Property Renovation.

Buy & Hold Investment Opportunity!

Property ID #: 2003
Location: Aurora North
General Description: 4 Bed/2 Bath 2,352 sq ft. home

This home is truly a gem. If you are looking for Buy + Hold rental property that doesn’t need a ton of work, here it is. Large home that backs to open space, 1 car attached garage. Finished basement, storage shed, and a wood burning stove.

Income & Expense Projections

PURCHASE COSTS
List Price: $104,900
Projected Rehab Costs: $4,000
Total: $108,900

INCOME
Projected Monthly Rent: $1,200
Annual Income: $14,400

EXPENSES
Insurance: $750
Taxes: $1,059
Total Annual Expenses: $1,809

NET OPERATING INCOME: $12,591

Cash on Cash Return: 11.6%

Many of you know we have recently held a few Buy & Hold investor webinars, where Dunn and Company talks about the Denver real estate market, where to invest and the type of return you can expect to receive from these investments.

We’ve had a pretty big response and wanted to provide a closer look at exactly what happens after a Buy & Hold, Rental property if you will, purchase. Knowing how to renovate a property to get it rent ready can be a little intimidating. How much should I budget? What ALL needs to be repaired or replaced? Should I replace the dated stove, even if it still works? What does a $2,000, $5,000, $10,000 renovation look like?

Well, Dunn and Company’s very own broker, Peter Musser just purchased his now, 8th Buy & Hold (Rental Property) in the Aurora, CO area. This is a 3 bedroom up, 1 bedroom down, 2.5 bath Single Family home. It’s a Ranch style home with a basement. Below are the projected projects including their budget. Throughout the 7 days, we will watch alongside Peter and he rips up carpet, demo’s a converted garage and makes this house go from junk to gem.

Day 1 – Buy & Hold Renovation

BUDGET

Presented By:  Dunn and Company, LLC, www.CashFlowProperties.com

Wednesday – February 16 @ Noon MST

Now, we know from our last few webinars and from the vast amount of inquiries we’ve had, that many of you are dying to get out there and start investing. Some common questions we’ve heard are:

• What do you look for when searching for Buy + Hold properties?
• What happens AFTER the closing?
• What items do you choose to fix in a home, does everything need to be updated?
• What all needs to be done to get the property ‘Rent Ready’
• How much money do I need to spend on Fix-up costs?
• And more….

So, we have decided to give you just what you have been asking for, the answers. We are going to dissect the entire process from Identifying, Purchasing & Budgeting, to Leasing it to your first tenant.  This is a real life transaction that was purchased and leased out within the last 30 days by our very own broker and investor Peter Musser.

Join us for a lively discussion of the Do’s and Don’ts, how close or far off he was from his budget, how to turn an investment property from drab to fab with the least amount of work, time and money. And most importantly, he will show you how he used alternative financing to purchase this home, with very little money out of his pocket.

THIS IS NOT PIE IN THE SKY, THIS IS THE REAL DEAL FOLKS!

Whether you are a new investor or a seasoned investor, don’t miss out on this exciting webinar. Sign up Today!!

Property ID #: 2001
Location: Aurora, CO
General Description: Detached single family ranch home with carport and fence yard.  2 bed / 1 bath.

This property is perfect for the investor that doesn’t want to deal with renovations. It has been completely renovated.  New paint in and out.  Double pane windows, renovated kitchen with all appliances, new carpet, new bathroom, great curb appeal.  Furnace is only 3 years old. There is a carport that just needs a foundation and two walls to make it a one car garage.

Income & Expense Projections

PURCHASE COSTS
List Price: $82,950
Projected Rehab Costs: $0
Total: $82,950

INCOME
Projected Monthly Rent: $775
Annual Income: $9,300

EXPENSES
Insurance: $500
Taxes: $478
Total Annual Expenses: $978

NET OPERATING INCOME: $8,322
Cash on Cash Return: 10%

So what happens next with foreclosed homes for sale in Denver?

Since banks are not landlords, they still need to sell the property. The bank will consider removing some liens, or even all liens, against the real estate in an attempt to resell it to the public. This process may mean another auction or working with a realtor. This is why you’ll find that foreclosed homes for sale in Denver are a very hot market for investors working with real estate agents.

So while it’s true that the foreclosure market may be large, it might not always be suitable for some investors.  Years before, buying foreclosed homes for sale in Denver was a bit more risky. A low sale price was the compensation for property being in poor condition. Today, however, foreclosed homes for sale in Denver aren’t always in bad condition. In fact, picking the right real estate firm for your foreclosure investments can lead to some financial gems.

When it comes to foreclosed homes for sale in Denver it really comes down to two things – 1) as an investor must consider all your options and 2) find a connected real estate agent. Once you take those steps, you’ll find the process can go much smoother and be profitable.

Several stages foreclosed homes in Denver go through.

The first stage foreclosed homes in Denver go through is pre-foreclosure. This happens when the homeowner has missed a payment(s) and is considered overdue. A formal cautionary letter is sent to the homeowner. A missed payment could be the result of lost mail, a banking error, or, in some cases, a matter of financial hardship for the homeowner. This is why lenders don’t automatically start a foreclosure upon a missed payment. However, when payments are continually missed and the lender has no correspondence with the borrower, they start foreclosure proceedings.

So should you buy foreclosed homes in Denver?

Foreclosed homes in Denver can provide substantial financial savings to the buyers. For example, buying a foreclosed home at a foreclosure auction is much cheaper than under normal context. Paying less will allow the buyer to do more investments and/or selling it at higher price than it costs. It is a general belief that on an average a buyer saves up to 30% to 40% when buying foreclosed homes in Denver.

Keep in mind there are some disadvantages when it comes to foreclosed homes in Denver. If you buy through an auction, the condition of the interior of the home usually remains undiscovered since you can only do a visual inspection of the day of the auction. Of course the advantage is when you buy foreclosed homes in Denver at a very low market price you can afford to spend some amount for restoration or repair work.

In today’s market though, foreclosed homes in Denver are often provided by real estate agents. While it’s true you’ll pay slightly more than at the auction block, with a realtor you have a chance to have the home inspected for any major flaws. In the end, you’ll find that as an investor, foreclosed homes in Denver can offer you a decent return when you pick the right home.

Property ID #: 2000
Location:  Aurora, CO
General Description: *Normal Sale* 3bed, 1 bath, 1,156 sq/ft. Very nice Ranch Style brick home, Needs virtually no work. Great home, New vinyl siding & New windows 7 years ago. New roof 4-5 yrs ago. This is a GREAT home.
Income & Expense Projections

PURCHASE COSTS
List Price: $105,000
Projected Rehab Costs: $0
Total: $105,000

INCOME
Projected Monthly Rent: $1,050
Annual Income: $12,600

EXPENSES
Insurance: $700     
Taxes: $600
Total Annual Expenses: $1,300

NET OPERATING INCOME: $10,700
Cash on Cash Return:  12%

Are you an experienced Real Estate Investor? Or are you someone who may have some cash in the bank and just not sure quite what to do with it. Look no further. Every week, Dunn and Company LLC finds real deals that are new to the market. Please, follow our blog and if you see a property you like, contact us. If you would ever like more information or learn how you can begin investing in Real Estate in Denver, CO please don’t hesitate to get in contact with us.

We would love to show you the ropes and help you get started Investing in Real Estate Today!

Step #1 – Set your plan. Know your long-term Denver real estate investments goals (like retirement, wealth building, etc.) and also know your short-term needs. Once in place, set up the proper entities and put the plan in motion. 

Step #2 – Determine your target market. As with anything in life you can’t be all things to all people (or real estate markets). Become an expert in a particular one. For example, if foreclosures appeal to you, learn all you can and start investing in the foreclosure market.

Step #3 – Don’t fall into “Analysis Paralysis” by over-thinking. Learn to analyze properties quickly. How? Look at what the property’s worth, if it need repairs and how much can you get for it.

Step #4 – Become a master of finance by learning about mortgages, interest rates and loan programs. Finance is important to negotiating your deals and to sell your Denver real estate investments.

Step #5 – Educate your self and become a skilled problem solver: Always learn new tactics, strategies and tips to stay ahead of the competition. Remember too that the main reason real estate deals get made is because someone is able to solve a problem (take over a foreclosure, do a short sale, etc.).  Knowledge is power.

Step #6 – Anything can happen on the real estate market (and usually does). That means you’ve got to be ready, flexible think on your feet (or have a reliable real estate team that can do it for you).

If you consider these six steps you’ll discover that doing Denver real estate investments can be both profitable and exhilarating.