Moving to Denver!!!

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Moving to Denver!!!

Chelsey Hamill
Realtor · Denver, CO · Member since 2015 · 29 posts · 7 votes

Hello Denver!

My boyfriend and I are planning on moving out to Colorado by this coming September, and we are pretty set on Denver. I have so many questions, so if you can help with any of them, it would be of tremendous help!

We will eventually visit before moving out there, just so we can get the feel of the city and find somewhere to live. Ideally I would want to purchase a multifamily, if we can qualify for a loan. Obviously 4 units or smaller, because I know prices are way higher in CO than they are here in West Virginia. So here goes!

-Where is a good place to reside in Denver? I am talking about desired neighborhoods that renters look for.. But more importantly for myself and my boyfriend, because we would be living in the unit too! We wouldn't want to be in the center of the city, but we can keep an open mind to different settings.

-How difficult is it to qualify for a multifamily FHA/VA loan where buyers occupy a unit and put as little as 3.5% down.. We are both servers (and will be until we search for other jobs). He is military as well. I'm unsure of any obstacles we may face when applying for a loan.

-I'm looking for the start of my eventual career in real estate, so I could use some pointers. I haven't made any investments yet, and have also been considering a job as a realtor to help build my savings.

I appreciate your help in advance,

Cheers!

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Bill S.Pro Member
Moderator
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
10y

@Chelsey Hamill you won't likely be buying a 4 unit anywhere in the Denver metro on two server incomes. The most junky properties in the least desirable neighborhoods are over $400,000. You should sit down with a mortgage broker and see what you would have to make to qualify for that kind of loan on a 4plex. It's pretty easy to spend $600,000 on a four-plex in a sough after area. I don't mean to throw cold water on your plans and at the same time it's better to find this out right away as opposed to after you spend a few months digging around.

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  • Max James
    Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes
    10y
    Originally posted by @Bill S.:

    @Max James there are plenty of cheap properties in Colorado. I watched a 1/1 duplex in Rocky Ford that was listed at $16,000. It sat on the market for over a year. Each side rented for about $300 per month. There are cheap properties here, they just aren't in the major metro area. BTW the population of Otero County (where Rocky Ford is located) has decreased at 3% per year for the past 50 years but there is cheap RE there. If you go to rural Colorado there is definitely cheap RE and there is no future there either.

     Good point Bill, it's illogical to say NOWHERE in Colorado has cash flowing properties. However, as a young professional looking to invest in an up and coming area that I feel comfortable to live in and use as a future rental, where once I am moved out and running it strictly as a rental that will cash flow well, that is a tough market to find, and unlike the Midwest, may not even exist. If I want to move to a up and coming area and work for a company as a young professional with a masters degree in a technical field making over $80,000/year, what markets do I have to choose from? I know this is a very difficult set of criteria :-), just as Chelsey.

    Any good sub markets in the Denver area where my commute to Denver would be 45 minutes or less? Thanks!

    0Reply
  • Micki M.
    Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes
    10y

    @Chelsey Hamill Welcome to Denver!  You seem to have a good understanding that the market it hot, but if you want to live here you're going to find a way to do it with an investor mindset and I love that.  I'll PM you some good Colorado lenders so you can get a feel for what your budget might be.  A lot will depend on how much money you make on paper (ie are you claiming those tips).

    As for starting a career as an agent, being a server is a phenomenal place to start when you're new to an area.  Think of all those captive leads sitting at your table every day.  If you ever want to have a chat about licensing and getting started as a new agent I'd be happy to connect.  Stay connected to BP and you'll have some great friends to hang out and show you around town when you arrive.

    1Reply
  • Chelsey Hamill
    OP
    Realtor · Denver, CO · Member since 2015 · 29 posts · 7 votes
    10y

    Thank you @Micki M.. I actually discussed it with my boyfriend and we will probably be holding off Denver for a little while longer because the market that we live in right now is way easier to break into. I want some security before I move halfway across the country haha. But when I do get out there, I will absolutely keep you in mind! I love the support on BP

    0Reply
  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    10y
    Originally posted by @Max James:
    Originally posted by @Bill S.:

    @Max James there are plenty of cheap properties in Colorado. I watched a 1/1 duplex in Rocky Ford that was listed at $16,000. It sat on the market for over a year. Each side rented for about $300 per month. There are cheap properties here, they just aren't in the major metro area. BTW the population of Otero County (where Rocky Ford is located) has decreased at 3% per year for the past 50 years but there is cheap RE there. If you go to rural Colorado there is definitely cheap RE and there is no future there either.

     Good point Bill, it's illogical to say NOWHERE in Colorado has cash flowing properties. However, as a young professional looking to invest in an up and coming area that I feel comfortable to live in and use as a future rental, where once I am moved out and running it strictly as a rental that will cash flow well, that is a tough market to find, and unlike the Midwest, may not even exist. If I want to move to a up and coming area and work for a company as a young professional with a masters degree in a technical field making over $80,000/year, what markets do I have to choose from? I know this is a very difficult set of criteria :-), just as Chelsey.

    Any good sub markets in the Denver area where my commute to Denver would be 45 minutes or less? Thanks!

    The entire area is up and coming, which is good and bad.  Some less expensive areas include Brighton, commerce city, Ft Lupton...

    Podcast Guest on Show #235
    1Reply
  • Chelsey Hamill
    OP
    Realtor · Denver, CO · Member since 2015 · 29 posts · 7 votes
    10y

    @Max James I think it's actually more logical to say that you can find properties anywhere, especially in big cities. It may take more time and you will probably have to use different methods than you originally planned.. Like you can still "house hack" as you said you would like to do, but you may have to find a fixer upper like Bill said. 

    And don't rely so heavily on Zillow/trulia/realtor.com there's actually an article somewhere here on BP about how unreliable those websites are. There's other websites that you can try like Redfin if its available for the area that you are looking in. And of course craigslist too. I saw an ad on there for a duplex that was off market for $199k. And you could always contact a realtor and explain that you might be moving to CO, what are the best areas that won't break the bank.. And then look for jobs in those areas. 

    Just make sure you keep your options open (:

    0Reply
  • Max James
    Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes
    10y
    Originally posted by @Anson Young:
    Originally posted by @Max James:
    Originally posted by @Bill S.:

    @Max James there are plenty of cheap properties in Colorado. I watched a 1/1 duplex in Rocky Ford that was listed at $16,000. It sat on the market for over a year. Each side rented for about $300 per month. There are cheap properties here, they just aren't in the major metro area. BTW the population of Otero County (where Rocky Ford is located) has decreased at 3% per year for the past 50 years but there is cheap RE there. If you go to rural Colorado there is definitely cheap RE and there is no future there either.

     Good point Bill, it's illogical to say NOWHERE in Colorado has cash flowing properties. However, as a young professional looking to invest in an up and coming area that I feel comfortable to live in and use as a future rental, where once I am moved out and running it strictly as a rental that will cash flow well, that is a tough market to find, and unlike the Midwest, may not even exist. If I want to move to a up and coming area and work for a company as a young professional with a masters degree in a technical field making over $80,000/year, what markets do I have to choose from? I know this is a very difficult set of criteria :-), just as Chelsey.

    Any good sub markets in the Denver area where my commute to Denver would be 45 minutes or less? Thanks!

    The entire area is up and coming, which is good and bad.  Some less expensive areas include Brighton, commerce city, Ft Lupton...

     What's the job market like in those areas? What are the Demographics like?

    0Reply
  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    10y
    Originally posted by @Max James:
    Originally posted by @Anson Young:
    Originally posted by @Max James:
    Originally posted by @Bill S.:

    @Max James there are plenty of cheap properties in Colorado. I watched a 1/1 duplex in Rocky Ford that was listed at $16,000. It sat on the market for over a year. Each side rented for about $300 per month. There are cheap properties here, they just aren't in the major metro area. BTW the population of Otero County (where Rocky Ford is located) has decreased at 3% per year for the past 50 years but there is cheap RE there. If you go to rural Colorado there is definitely cheap RE and there is no future there either.

     Good point Bill, it's illogical to say NOWHERE in Colorado has cash flowing properties. However, as a young professional looking to invest in an up and coming area that I feel comfortable to live in and use as a future rental, where once I am moved out and running it strictly as a rental that will cash flow well, that is a tough market to find, and unlike the Midwest, may not even exist. If I want to move to a up and coming area and work for a company as a young professional with a masters degree in a technical field making over $80,000/year, what markets do I have to choose from? I know this is a very difficult set of criteria :-), just as Chelsey.

    Any good sub markets in the Denver area where my commute to Denver would be 45 minutes or less? Thanks!

    The entire area is up and coming, which is good and bad.  Some less expensive areas include Brighton, commerce city, Ft Lupton...

     What's the job market like in those areas? What are the Demographics like?

     Job market?  Mostly trade/industrial/service, people with corporate jobs up there commute to Denver, DTC or Boulder/interlocken areas.  If you want up and coming with affordability with cashflowing investment property, you wont likely find it here.  I cant think of one sector of the city or suburbs that arent low on inventory, and seeing 10-12% appreciation in the last year.

    Podcast Guest on Show #235
    1Reply
  • Max James
    Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes
    10y
    Originally posted by @Anson Young:
    Originally posted by @Max James:
    Originally posted by @Anson Young:
    Originally posted by @Max James:
    Originally posted by @Bill S.:

    @Max James there are plenty of cheap properties in Colorado. I watched a 1/1 duplex in Rocky Ford that was listed at $16,000. It sat on the market for over a year. Each side rented for about $300 per month. There are cheap properties here, they just aren't in the major metro area. BTW the population of Otero County (where Rocky Ford is located) has decreased at 3% per year for the past 50 years but there is cheap RE there. If you go to rural Colorado there is definitely cheap RE and there is no future there either.

     Good point Bill, it's illogical to say NOWHERE in Colorado has cash flowing properties. However, as a young professional looking to invest in an up and coming area that I feel comfortable to live in and use as a future rental, where once I am moved out and running it strictly as a rental that will cash flow well, that is a tough market to find, and unlike the Midwest, may not even exist. If I want to move to a up and coming area and work for a company as a young professional with a masters degree in a technical field making over $80,000/year, what markets do I have to choose from? I know this is a very difficult set of criteria :-), just as Chelsey.

    Any good sub markets in the Denver area where my commute to Denver would be 45 minutes or less? Thanks!

    The entire area is up and coming, which is good and bad.  Some less expensive areas include Brighton, commerce city, Ft Lupton...

     What's the job market like in those areas? What are the Demographics like?

     Job market?  Mostly trade/industrial/service, people with corporate jobs up there commute to Denver, DTC or Boulder/interlocken areas.  If you want up and coming with affordability with cashflowing investment property, you wont likely find it here.  I cant think of one sector of the city or suburbs that arent low on inventory, and seeing 10-12% appreciation in the last year.

    Thanks for the reply! I think you are 100% correct, up and coming, young professional, corporate jobs, and a cash flowing cow, is not going to be found on the MLS ANYWHERE in Colorado. Yes, off market properties found by major hustle is always possible. In the whole scheme of things though, inventory is down across the country, and is probably even more so apparent in Colorado. Maybe I need to refocus and move into a place where I can pay rent to live somewhere in Colorado while continuing to build my portfolio and invest in Cinci since I'm very familiar with this market. The market in Colorado doesn't seem like it's going to fit my criteria.

    0Reply
  • Tess Tari
    Investor, Corporate Controller · Lakewood Golden, CO · Member since 2015 · 21 posts · 5 votes
    10y

    @Max James - I disagree about cash flow.  Perhaps you won't touch the golden 2%, but our rents are so high that you can support a decent cash flow over mortgage, if you get a good price, even in the Denver metro.

    @Chelsey Hamill - be aware that while Co Springs purchase price IS cheaper, so is the rent.  That's definitely something to take into consideration when looking at this area.  Also - be aware that you probably want to avoid the Pueblo area (sorry - not meant to offend), as this whole area is considered low income and renting there can be challenging, from what I've heard.  I would highly suggest the Westminster/Arvada/Broomfield area for a newbie.  This is not technically very close to Denver, but it is more affordable and much easier to get into than the city proper.

    I would avoid Aurora, Sheridan (city, not street), Commerce City, and Denver proper until you are more familiar with the city and metro area.  If at all possible, visit the area that you're looking to purchase in, during the day and during the night, on Monday night (yes, for some reason Monday night can be hoppin' in the bad 'hoods) and on the weekends.  You will quickly find out where you want to be, and where you might not want to be.

    There are good finds, you just have to work harder to find them! Duplexes, though, are very rare. If I were starting out here, I would find a nice condo with a very low HOA payment, and that doesn't preclude renters, and move in while I'm getting situated. Then I would look for a duplex.

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