Every week I'll record a new podcast and send out an email with the latest updated. Listen to the episode "#147 - Coronavirus Denver Market update - March 30th, 2020" on the podcast.
Listener Question: Should I sell a breakeven rental property in Denver?
Answer: I would not. The market will recover at some point. However, it really depends:
* What is your financial situation? Do you have reserves set aside? If so, ride it out.* What are your goals? If you're a long term buy and hold investor, then no. See above - you need to make sure you can hold onto the properties.* If you sold it, how much would you walk away with? Remember real estate is not cheap to transact in. How much equity do you have? If purchased within the last year, you may owe money at closing.
My recommendation is to sit tight through April since the tenant renews in July. April is going to a rough month. Get through it and reevaluate based on the market, government bailouts, your situation, etc.
If you have questions, email me at [email protected]. If you're client, give me a call so we can hop on a call to discuss everything.
Vacant Property Updates - Renters Are Still Moving
Last week I had two vacant units. Now it's only one. Based on talking with property managers and activity on my places, renters are moving, but it's a slower pace. My condo leased up for $1850 (my original estimate) to a tenant with a section 8 voucher. It crisis times, I like the certainty of government rental checks. I put my fourplex vacant on GoSection8.com
Your Castle Webinar Notes
Here are notes from the Your Castle webinar for their agents. If you want the recording, email me.
Showings for Denver Real Estate:
* Technically we are allowed to do showings and list houses
* Can we = Yes* Should we = Probably Not. COULD be a violation of "stay-in-place" order if deemed non-critical and could result in fines for all involved (agents & clients).* Can't let the need to put food on the table outweigh an executive order and put others at risk
* Educate clients and over communicate!
* per Eric - 19 families so far have been directly affected by COVID-19 leading back to showings/seeing properties as source in Colorado.* Everyone is more exposed (buyers/sellers/agents). Know the risks
* If more confirmed cases of COVID-19 are sourced from showings/listings, good chance RE will shut down as non-essential biz to stop spread* Buyers need to wash hands before & after each showing* Keep hands in pockets at showing* Sellers need to disinfect after each showing* Vacant homes - buyers and agents still at risk. When was it last disinfected?
Title:
* Curbside Closings
* Responsibility of agent to explain process of closing and help buyer/seller feel comfortable to close on their own* Agent does not NEED to be there and most companies will ask that they are not* Agents can call into closing. Receive docs in advance.* Trying to have least amt of ppl at table as possible.
Lending (Joe Massey)
Suspended Mortgages:
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Not everyone will qualify for suspended mortgages
* Landlords & VA qualify??? = probably, call servicer!* If owner has already stoped making payments and date has already been set for auction/foreclosure?? = probably, call servicer!
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No Late payments on credit report does NOT mean that no negative items
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