Let me tell you about my investment property.
I figure if I'm going to work with real estate investors I need to walk the walk. I purchased a 3 bedroom 1 bath home in Greeley in a great location. It's just a few blocks from UNC and downtown Greeley.
The home is a cute 100+ year old home but needed some TLC. I assembled a team of high-quality, reasonably priced contractors to help me whip it into shape. The goal was to take it a step beyond the basic turnaround remodel on rental properties and justify a higher rent. My team includes;
- General Handyman
- Master Electrician
- Flooring person
- Home Inspector
- Yard Maintenance & Clean Up
- Cleaning Crew
- Ceramic Tile Steam Cleaner
- Pest Inspector
- Garage Door Repair
- Fence Repair & Installer
- Property Manager Adviser
We turned the property around in just a few weeks and I rented it for $1,350 per month.
I put 25% down so here's my math (ROI - Return on Investment)
Monthly Rental Income = $1,350
Monthly Mortgage Expense = $ 800 (includes, principle, interest, property taxes, insurance)
Monthly Income = $ 550
My property manager adviser pointed out approximately $5,000 worth of repairs & improvements to make to worthy of $1,100 rent. I went a little bigger and spent $12,000 but rented it for $250 more per month. Though it will take me a little more than 2 years to get the extra $7,000 back, I was happy with the results. Most importantly, because of all the upgrades I made and the advertising channels I used, I had over 80 inquiries from prospective tenants.
If you are thinking about getting in investment properties but are new to the game like I was, I can help. I have a complete package for my first-time investors that includes;
- An advisory committee of investors and property managers to recommend properties to purchase.
- A great lease for both individuals or college students
- A home inspector (he personally owns 16 rental properties) to provide you with a to-list for repairs and improvements
- A list of proven, high-quality, reasonably-priced team of contractors to turn your property around (if needed)
- Advertising recommendations to help you surface as many prospective tenants as possible.
- A background check service to help you get to know your tenant prior to signing the lease.
There's NO better time to invest in Colorado real estate than NOW!
Here's my favorite ROI Calculator
to help determine the profits you'll make on the investment property you'd like to buy.