First time Investing Advice
Hello everyone!
I've read through quite a few posts and gotten some fairly good advice, so now I'm looking for some situation-specific advice. I am in my 20s and wanting to get in to the real estate investing market. However, it is quite difficult to get good advice elsewhere!
I currently live in the Denver area, I own a home, and rent to roommates, which is awesome for living expenses. I am looking to purchase an investment property in the very near future and do have a substantial amount to put down for the necessary 20%. I have primarily been looking for single family houses that are $350-$385K in the Westminster/Arvada area. The problem I am running in to is that a $375K house would be great, but every house is going for at least $25K over asking price, if not up to $50K over asking price! This definitely does not follow the 1% rule. It doesn't seem worth wile to spend $400K on a property, even with 20% down, especially since most places going for this need work or are quite small.
Does anyone have advice as far as price point vs. rental income goes? Is it worth it to get a property in this market? Should I be looking for a condo/townhome instead of a single family home? If my rent to mortgage ratio is something like $1700 to $2500, is this worth it? Or am I getting into dangerous territory?
Ideally I would like to purchase in the Denver area, since I live here, but am open to suggestions. I have heard Colorado Springs is a good market for investing, but I'm not sure yet.
Bottom line is that I know real estate investing is worth it, but I'm not sure the parameters. Especially with a ridiculously competitive market that every property gets 20 offers in the first day!
Thank you!
Katelin