Hi Logan, I live and invest in Pueblo, and what the others are saying is very true, it can be a hard market. I am fairly new to it as I only have 2 rentals. I have had pretty good success so far, but it not the case for a lot of others I know. The good thing about Pueblo is the price of house and the price of rent. Most houses are renting for 1.5 to 2 percent of sale price which is pretty good. The bad news is here is a of rough area of town. If you do not mind me asking what price range are you looking in ?
This is an old thread started before I actually started paying much attention to the site. Pueblo is not a bad area to invest in. It has it's **** holes, but please don't ask me where they are since I'm a licensed agent, a little homework will answer those questions. I do know investors that have come from Denver and having a heck of a time selling their flips. Wrong location, over renovation, the list can be long, simply because they don't understand the market here. The median price depending on who you talk to and what numbers you use is around $150,000. Some of the most successful flippers in this area are agents simply because they know the market and recognize the deals. Are they making flip or flop gross on their flips.... no there not. There is little risk with marginal renovations in good neighborhoods with homes that have good bones but are simply dated if you're willing to look. Low risk, low reward and unfortunately that turns away a lot of investors. Plus our $150,000 homes in Pueblo are $250+ in Denver, so if you wanted to spread your capital further it makes sense to consider Pueblo. I can say because it's public knowledge there is an EPA Superfund designated area that has stigmatized approx 1900 homes in Pueblo resulting in no lending in the area so there is some long term potential for the buy and hold crowd. Just my 2 cents
I don't plan on just investing in Pueblo I'd like to move up in time to Denver. It might not be bad as I am from San Diego and Tijuana and have seen ugly.
Hello, Can anyone share information on the EPA superfund site in Pueblo? is there a easy way to tell if a house is in the area? Are sellers required to disclose that?
reach out to me via email or phone and I'll get you the list of homes that are in the designated areas. As an agent we better disclose or the real estate commission will be slapping us hard. If you were selling without an agent, it would be wise to disclose it, even if you have rentals it would be wise to disclose.
@Damian Solorzano There is a map you can get of the area. I love investing in Pueblo, co! My cashflow is through the roof. For the skeptics out there, I bought a 3/2 on the EAST SIDE. Where everyone still thinks its the same from 10years ago. Purchased $70K, 5K down, owner financed at 8%. Payment is $558.55 PITI. Rent for $950/month. $391.45/month ($4697.4/year) cashflow. I know everyone wants to add in expenses and vacancies. I use lease options, so the tenant/buyer gave me $7K, non-refundable, to move in. They pay all repair/maintenance and utilities. If they move, i get another $7k from someone else and actually make more when it goes vacant.
If you just look at the cashflow, i'm around 100% return annually. Add that $7k and i'm around 250% ROI in the first year.
If i would have used traditional numbers... with $14K down, around 4%interest, $388 PITI. $562/month cashflow ($6,744/annually). Still close to a 50% return annually. If i add the $7k from option payment from tenant, that's pretty close to 100% return in the first year alone.
@Robert Herrera Are there local investor friendly banks to work with there that will loan amounts lesss than 75K? A friend of mine mentioned Pueblo Bank & Trust.
@Rick Thomas Thanks for the superfund list, I appreciate it.
@Damian Solorzano I personally have not used Pueblo Bank & Trust, but I can see that as a viable option. I think i was discussing this bank with another person down there who was selling for around 40K on a nice 2br there. This was a couple years ago. I would recommend looking for a Mortgage broker. Of course there are loans to be found for these properties. It's real estate. Some companies and banks have a minimum because they do Multi-million dollar deals, so its not worth their time. There are smaller outfits that you should be able to work with. Try credit unions in the area as well.
We just refinanced six properties in Pueblo with Legacy Bank. They are willing to eventually take on my entire portfolio. Send me a PM and I can connect you with the banker I used. She managed to pull everything together and close the loans even though I'm overseas. So I've been really happy with them so far.
We have 19 properties in Pueblo. So if you need recommendations of service providers, let me know.
Just checking back in on this thread. A lot of good info. I think I'm going to have to start seriously looking at Pueblo again, especially cause it was like #12 for markets with the highest growth potential in 2017.
@Logan Halliburton I've been saying this for a long time. I'm glad it's finally caught up to everyone. Market is moving fast, and everyone getting $15/hr by 2020 is going to make this a great market for everyone getting in NOW.
This is just like the stock market. Everyone standing on the sidelines, hearing about Pueblo. Then this report about it being one of the best markets for 2017. Everyone is going to wait a couple more years, and as the value goes up, everyone will buy in when it's at the top of the market in 2020. That is because they are coming in late to the party. They will get mediocre returns at best by then. It's like when the stock is shooting up, everyone hears about it and buys in at the TOP of the market because its "HOT." By this time, the real investors already made their money, and will gladly sell you a top of the market home.
Here is the link to the article on BP that lists Pueblo as #15 on a list of US markets with best growth in 2017. It is referencing data from an outside source, but it is very interesting.
Michael Wentzel
Hello, I am from Orange County Ca. I have been checking out a duplex on Zillow in the Pueblo West area. I was searching bigger pockets to see what people say about the area and came across these post. I saw you mentioned you invest in Pueblo, do you have a good lender, realtor, property manager you can refer me to? How are you doing in the Pueblo area? What are the average rents in the area? Looking online says average for a 2 bed 2 bath goes for around 1250$/month. Is this accurate? Thank you for your time, look forward to hearing your feedback.
We continue to be involved in Pueblo and are doing well in the market. I have some good contacts I can give you if you're serious about getting into the market. I don't want you to waste their time. I will send you PM.
My husband and I are looking to invest in Pueblo. I found your comment and wanted to know if you would be open to scheduling a call? I’d love to know what types of deals you are doing and who you are working with. Looking forward to connecting.