In this week’s live Drinks and Deep Dives show, I gave an update on an Accessory Dwelling Unit (ADU) course I’m working on and need your input to make it better. I also talked about my favorite metric to use when deciding to invest, and did a deep dive on whether to keep or sell a completely paid off property.
- Listen to the podcast “#292: DDD: Seeking Input for ADU Course, Simple Investment Metrics, and a Deep Dive into Paid Off Properties” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
New ADU Podcast Series – Coming Soon!
A couple of years ago, I did a multipart podcast series about ADUs. The course had a lot of great information in it and we got positive feedback, but it’s dated now, and a lot has changed in the ADU space. I’m in the process of updating the course, and I want to hear from you. Whether you’re someone who wants to learn more about this topic, or you are already involved in some way (you own an ADU, are a contractor who works on them, or work in zoning or the city council), please fill out this two question survey so I can put together the best and most relevant content.
Which Metric to Use When Deciding Where to Buy Rentals
When it comes to life and investing decisions, I like to follow the KISS approach: Keep It Simple, Stupid. If I only had one metric I could use to decide if I should invest in a particular real estate market, it would be population growth. From a macro standpoint, a city or area is either growing or it’s shrinking; very few places keep a steady population. If I look at the population growth of an area and see that it’s steadily increasing, I know that it’s a good investment.
LinkedIn recently released this chart showing the migration of their users over the past 12 months:
As you can see, Denver comes in 6th, measuring new people per 10K residents. The punchline here is that Denver, along with these other markets we often hear about, is growing. I like this because it really shows the growth Denver is having. People are moving to places for jobs, lifestyle changes, and opportunity, all of which Denver and other areas along the Front Range provide. If you have a long term plan for investing, then buying in a growing market like Denver is a good plan.
I encourage everyone to think about their own number one metric for investing. What do you use to decide whether or not to invest? Leave comments under the podcast or shoot me an email.
Should I Sell My Paid Off Rental or Keep It?
Finally, my deep dive this week is whether to sell or keep an investment property that’s entirely paid off. Like most things, it all depends on what your goals are, and where you are in your real estate career. I used the Return on Equity spreadsheet to walk through a case study that shows all of the potential outcomes. You can find the Deal Analysis: What should I do with my paid off property? here.