Zillow Advice: Home Buying - Advise me on strategy.... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ Zillow Advice | Zillow Real Estate Hi David -- unless you have ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ Hi David -- unless you have an inside connection at a bank, the days of finding "cheap" fix &amp; flip properties are pretty much over.<br/><br/>You didn't mention if you would be doing the work or hiring a contractor to "fix" for you. &nbsp;If you have to hire a contractor, it's a bad idea on all counts. &nbsp;People really don't understand how much money it takes to find a buy and sell flip properties (most if not all investment homes are cash only deals fyi). &nbsp;By the time you renovate, there are additional costs when you sell -- Realtors fees and title company fees typically add up to around 7% of the purchase price.<br/><br/>It's extremely difficult to make money unless you are a professional flipper, and even then, it's a very risky business.<br/><br/>If you decide to go with or scrap the investment plan, buying a home is the only investment where your equity position will grow over time. &nbsp;The Denver market is expensive and will prices will likely continue rising into the foreseeable future because of low inventory -- supply and demand. &nbsp;With interest rates near 4% again, the safest decision you can make is to buy a home and scrap the "flip" plan, at least for a few more years to see what happens.<br/>[Website removed by Zillow moderator. Please see our <a rel="nofollow" title="Good Neighbor Policy" href="http://www.zillow.com/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>.] Wed, 24 Dec 2014 21:23:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2014-12-24T21:23:00Z Condos are a bit of a wild ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ Condos are a bit of a wild card, but a good place to start. Sometimes, just leaping in at a higher price range can back fire on you, get your feet wet 1st. Learn the process and then get going on the duplexes and homes as you learn the process. Good luck! Mon, 22 Dec 2014 18:42:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2014-12-22T18:42:00Z No, but you can make one ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ No, but you can make one up for yourself, and you can use paper.<br/> Mon, 04 Nov 2013 01:44:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2013-11-04T01:44:00Z I appreciate your response, ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ I appreciate your response, I hear you loud and clear.<br/><br/>Would you happen to have such spreadsheet?<br/><br/>Thank you Mack. Sun, 03 Nov 2013 19:57:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2013-11-03T19:57:00Z It's not so much a strategy ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ It's not so much a strategy that you need to find, David, as a method of accounting.<br/><br/>I'd start by creating a spreadsheet, and I'd compare how cash it would take to acquire, carry, and rehab specific places and compare that to how much I could rent them for when they're done.<br/><br/>Investing in real estate takes a lot of pencil work. In fact, most of the hard work is done in the office, not on the property.<br/><br/>All the best, Sun, 03 Nov 2013 18:52:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2013-11-03T18:52:00Z Duplexes are definitely a ... http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ Duplexes are definitely a safer investment than condos or townhomes. &nbsp;Condos and townhomes are the first to depreciate in a down market, and the last to regain value when the market comes back. &nbsp;Additionally, condos are subject to becoming "non-warrantable" if more than 50% of the units become rentals, or if the HOA's finances get out of balance. &nbsp;This means that buyers will not be able to purchase the units with FHA or Conventional loans, instead being forced to use obscure portfolio loan products, that have higher interest rates and larger down payment requirements. &nbsp;Finally, the HOA fees on condos and townhomes increase steadily over time as the complexes age and maintenance requirements grow. &nbsp;As the HOA fees increase, the amount of rent you can collect will decrease in order to keep the rental rate competitive on the unit. &nbsp;<br/>So in short... go with the Duplex or even better, single family homes if you can find them. &nbsp;I know of a few decent neighborhoods where you can still find acceptable rental homes around $100k in Denver. &nbsp; Sun, 03 Nov 2013 18:50:00 GMT http://www.zillow.com/advice-thread/Advise-me-on-strategy/517753/ 2013-11-03T18:50:00Z