Happy August!
Summer is in full swing – and the real estate market has been a whirlwind. I’m still on the road – will be back in Denver week of August 14 – and am ready to be home! I’ve arranged a few showings for clients while on the road – and both have gone under contract within days, even with the high interest rates.
A few pieces of info to be aware of in the Denver market:
- Colorado Cities can no longer put a cap on growth – article here
- FHA increased the loan limits on multifamily from $75 to $120 million in a response to low inventory and increasing costs – article here
- Biden Administration released details of the Housing Supply Action plan, aimed at eliminating regulatory barriers to new construction and development – article here
- Denver ranks as the highest rental market in Colorado – article here
And while I keep up with the national news about the market in general, real estate is extremely location specific, so if you’re curious about an area, reach out to a professional – like me! – to help you ascertain the information you’re looking for. If you have questions, let’s connect!
| Budgeting, Tracking Spending & Allocating for Fun Who wants to talk about budgeting? What lame people track spending!? And YOLO, so spend it if ya got it, right?? They say personal finance is personal – and what people spend money on is not for you to judge. Couldn’t agree more! However, knowing where your money is going, having money-alignment with what you really want and making sure you are realistic with what is coming in versus going out makes good sense & will make life easier! Here are a few things I’ve done or tools I’ve used to help! *This is not financial advice* Empower This is a great tool to help with tracking your spending, and your net worth. Downside is the API to your financial institutions connection can be spotty. I’ve used the free version for several years and like it a lot. Excel For all of my rental properties (including short term) I use good old excel. Each month, I update expenses (insurance, utilities, maintenance, HOA’s) and input the rent for my P&L. I also track the fun trips we take – so I can gauge how much travel is costing and ensure I budget accordingly for the next year. Make sure you budget fun in! Account Buckets A few years back, I opened up Capital One accounts for different purposes; one for tax, fun, maintenance, and an emergency account. The emergency & maintenance accounts are High Yield Savings, as I tend to have more in them, so these can earn more. I also have two Capital One cards and have loved the points & 0% APR! (This is an affiliate link, but I wouldn’t share if I didn’t personally love the card!) Questions? Reach out! |
Accountability Club
Networking groups, Masterminds, Monthly Meetups.
I participate in all of the above!
These groups are immensely helpful for meeting people who are doing similar things, who are a few steps ahead of you, diving deeper into things you may not have thought of as well as getting access to resources that may help you.
The downside to some of these groups is that they are extremely large, they can feel more social at times and it takes a lot of work to get to know the people you connect with, and the next step-part is all up to you – no one typically follows up. So, I want to start a group where we take those second and third steps together, with a structured approach – because I am still going to the meetups, the networking and doing the work there – but I want a group to hold me to the fire. I know I need that, want that, and haven’t found it for a price tag less than several hundred if not thousand dollars. If you are interested in hearing more, let me know!
Real Estate Lessons Learned on the Road
We’ve been on the road since June 12th (currently writing this in the Diametric Brewing Company in Missouri) and have had a few issues pop up in our business that I want to pass over to those who manage their own portfolio or who are thinking of investing in real estate. Managing your own real estate doesn’t require day-to-day maintenance, but it isn’t 100% passive – the more upfront you can do, the better!
Mid-Term Rental Lessons
I signed a mid-term rental tenant before we left and missed some things::
- Install a nest/lock on the thermostat – our tenant had the AC set so low they overloaded the system. Going forward, we will run the energy saving programs and lock the thermostat or install nests.
- Utility clause – we excluded utilities in the rent – after giving them a significant discount. Going forward, utilities will be paid by tenants who receive a discount.
- Tenant misuse clause – putting a clause in the midterm rental about misuse of property beyond wear and tear would have protected against the garbage disposal being locked up due to inappropriate things being thrown down it, in turn issuing a large plumbing bill. Going forward we will specify what can and can’t be placed down the sink.
Long-Term Rental Lessons
We have 3 long-term rentals that I self-manage, so doing so remotely wasn’t a huge adjustment until problems occurred. Here are some issues and things I’ll do different in the future:
- Appliance maintenance – two of our rentals had issues while on the road. One issue needed to be addressed by a plumber, the other was a maintenance issue that I will now add to my house manuals and leases.
Short-Term Rental Lessons
Our primary is rented out via Airbnb while we travel and surprisingly enough, it took the least amount of effort due to the front-loading of work. Here are the things I leverage prior to us leaving that ensured a smooth short term rental experience.
- Automated Messages – all of the messaging between guests happens within the Airbnb messaging – which is free. I send pre-check in messages and pre-checkout messages that clear up 90% of what guests usually ask about.
- Broken Items – a guest broke something and although they replaced it, next time we rent out our primary, I will declutter/remove additional items so it’s a non-issue.
I share my experience in the hopes that others learn from it, that it sheds light on the reality of rentals, and that it shows what is possible, If you are thinking about investing in real estate, let’s connect!
Tips & Teachings
I’ve been thinking a lot about my environment lately – how it influences me in positive and sometimes negative ways. I’m a firm believer of mood following action and setting your environment up to make it easier to take action is so important.
I’m sharing some quotes, articles and podcasts I’ve listened to over the past few weeks that have enforced this..
- Doing the boring shit is what separates those who excel.
- We live in a culture that promotes distraction, so much so that we have to go out of the way to be present.
- Adversity doesn’t build character; it reveals it.
Here is an article & podcast I’ve listened to that I found extremely helpful in my business, finances, life!
Enjoy!
- Article: 100 Tips for a Better Life
Tim Ferris: Revisiting the 80/20 Principle
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| Have Questions? Reach out to happyhomescoltd@gmail.com about real estate investing or if you’re looking to buy or sell! |