Check these options out; Ours is one of those cities that’s never lacking for stuff to do!
From the inbox: What’s a good source that gives me a general rundown on real estate investing?
Good question! This question is a follow on from this post “you mention ‘cash flow’ investing….”
Probably the best general rundown I can recommend as a good starting point is this podcast from Bigger Pockets: The Ultimate Beginner’s Podcast for Real Estate Investors. I am a huge fan of these podcasts and this forum has helped me personally prepare for my investment journey.
Private Rental — 4113 Happy Jack Dr — D49, 3 Bed, 3 Bath, $1400
By request of the landlord:
Private Landlord — 4113 Happy Jack Dr — D49, 3 Bed, 3 Bath, $1400, pets ok w/deposit, call or text 719-271-3019 for information/showings!
From the inbox: you mention “cash flow” investing in rentals a lot, what does that mean?
Good question! In our city, we have somewhere around a 96% occupancy rate for rentals (I have heard it quoted as -1% but haven’t been able to validate that yet). This represents a great opportunity to invest in ‘income’ property here (I hope to buy at least one quadplex personally soon).
When I mention “cash flow,” I am specifically talking about the difference between the mortgage on a home and the rent it brings in. For example, a 3 bedroom, 2 bath home in Colorado Springs rents for – on average – $1100. What if you could buy that home with a mortgage of around $800 taxes and insurance included, then rent it out? The spread would be $300. Assuming a $20,000 downpayment, the ROI (Return on Investment) would be 5.5% a year gross. That’s MUCH better than a checking or savings account generates.
What if I don’t have $20K, you may be saying? That’s okay; there are other options from owner occupied quadplexes to partnerships and more.
Questions? Email me at robthompsonrealtor@gmail.com or call 719-440-6626.
Also, check out Bigger Pockets “Buying Rental Property.”
Know your rights: Colorado Springs Fair Housing Information
I get a lot of requests for information on tenant and landlord rights.
Knowing your rights and obligations is critically important in protecting the same!
For your reference, here is the Colorado Springs Fair Housing Information brochure!
This is not legal advice. Always consult an attorney before taking action.
Suggested Post: What do I look for in Colorado Springs in a landlord?
Colorado Springs is an extremely competitive rental market. I’ve been tracking this specific aspect of the market for about 18 months now and it has only increased in it’s intensity.
As a consumer advocate and agent, I get a lot of requests for validation of listings, etc., as there are a LOT of scams out there, too.
What’s a tenant to do?
First and foremost, be aware of the market value of rentals here. A 3 bedroom, 2 bath home will rent for, on average, $1100. If you find one on Craigslist for $900 or less, be VERY cautious. When you engage the landlord, if they tell you they are out of town on a medical service mission to another country, or attending the needs of royal family in England (someone tried that one, for real), chances are it’s a scam. Actually, let’s call a potato a potato — that’s a scam.
How can you check a listing? If the ad is using photos marked “RSC” followed by a year (e.g., “RSC 2011, RSC 2014), those photos were pulled from the Multiple Listing Service (MLS) agents use. While some homes are listed for both sale and rent at the same time, it’s unlikely an authorized representative took the photos, uploaded them to MLS, saved them after the MLS post processed, then reposted them to a third site.
You can also check the landlord’s name against the El Paso County Assessor’s site. If “Adam Smith” is telling you he owns the home at 200 Gerber Rd, run the address through that site and it will return the owner of public record.
You can also check PPAR.com or Realtor.com to see if the home is currently for sale. If it is listed for sale, the list agent will know if the seller is renting it out as well.
Some other indicators include things like mismatched email addresses and names. My email is robthompsonrealtor@gmail.com — if I’m corresponding from robtomsonagent@gmail.com, braddpitt@gmail.com or adamsmithreallyimanagent@gmail.com, there’s likely a problem.
Additionally, if they want you to make a deposit ahead of signing a lease or viewing the property, that’s an indicator of trouble or fraud as well.
if you are looking to buy or sell a home in Colorado Springs or Denver area, call Rob at 719-440-6626!
From the inbox: what should I look for in a tenant?
That’s a really good question and one I’ll defer to Bigger Pockets on!
This is their “Ultimate Guide to Tenant Screening.”
For tenants, this can give some insight into what landlords may look for.
For everyone, Bigger Pockets is a fantastic forum – and their podcasts are highly informative.
If you’re looking to buy or sell in the Colorado Springs or Denver area, please call Rob at 719-440-6626!
From the inbox: what is earnest money? Is it a downpayment?
Short answer: it’s not a downpayment (but can be used as part of it). It’s “skin in the game.”
Longer answer: earnest money is also known as “good faith money.” It’s money you as a buyer provide with an accepted offer that shows a seller you are serious about purchasing the property. You generally get this money back at closing. In Colorado, there are a number of protections for you as a buyer that enable you to get this money back if you choose to exit the contract. The seller only generally gets this money if all of your contractual protections have passed and you choose not to execute the purchase and/or something happens that affects the sale. Your buyer’s agent should keep you posted of these dates and what they mean for you and your earnest money.
Looking to buy, sell or rent a home in Colorado Springs? Call Rob at 719-440-6626 or email me at rob@rtrcolorado.com!
From the inbox: Can I really buy a home with a VA loan for no money down?
Good question! Short answer: Yes!
Longer answer: yes, with a couple of caveats. VA loans are a fantastic entitlement for service members (I am one, too, and used my loan!). They allow a military member, active, retired or former, to purchase a home for no money down. The minimum credit score for these loans is typically 620. However, don’t let that hamper you if you’re close to that score but not quite there. You may be surprised to learn that paying off a debt could raise your score enough to qualify.
All that said, there are two up front costs on a VA loan you should be aware of. First, earnest money. This is money the seller requires you to put up at the time of the contract (or within the contract period, as negotiated). I’ve had good success in Colorado Springs with getting $500 earnest money allowed for military buyers. Here’s the awesome thing about earnest money: you get it back at closing!
The other up front cost is the home inspection. These run around $250-280. Here’s a cool thing about using me as your agent – I have a military buyer credit that can be used to pay for this inspection at closing!
In short, the total upfront cost can REALLY be as low as $780 to own a home on a VA loan.
Looking to buy or sell a home in Colorado Springs? I’d be honored to earn your business and be your advocate. Call Rob at 719-440-6626!
The Gazette discusses the Colorado Springs leash law…
…I personally wasn’t aware having an unleashed dog could result in a $50 fine. Good to know, as well as there’s a quick summation of a proposed change in the video.