APO, AP · Member since 2016 · 168 posts · 54 votes
I'm going to be investing out of state and the only area that I do know is too expensive for me to really make any money there right now. Does anyone have ideas on how to pick a state to invest? I'm thinking of moving to Colorado in a few years, but I'm open to anyone's suggestions. Thanks!
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
9y
@Dylan Tettemer what do you mean better? I would say this, interest rates will likely be higher. How much is anyone's guess. I think it's safe to say unless the financial world or the front range economy gets turned upside down, it will cost you more (relative to percentage of income) for your housing in 2019 than it does now. There is currently very high demand and low supply for housing. There is nothing on the near term horizon that would say that's going to change anytime soon. At some point there will likely be an over supply of luxury apartments but for now we are still not out of balance with supply and demand.
I just attended a presentation for real estate investing outlook yesterday. Right now we still have no end in sight. The last rent run-up lasted 10 years at 10% rent increase per year. We are about 6 years into the current run-up.
APO, AP · Member since 2016 · 168 posts · 54 votes
10y
Joni Renee Zalk i was actually looking at Boulder! I was looking around there and Colorado Springs. I'm currently in the Air Force in Japan but want to go to the states after here
Boulder, CO · Member since 2016 · 41 posts · 9 votes
10y
@William F. I sure do! It depends on several things, like when you want to move here, which area you want to live in, what kind of investment you're looking for, etc. Let's talk!
Boulder, CO · Member since 2016 · 41 posts · 9 votes
10y
@Dylan Tettemer Japan is one of the very last places on my tick list (I have traveled extensively around the world and especially Asia). I think we should swap places for a few weeks! Give me a call or email, I'd like to hear what you're thinking of for your future. :)
Investor · Panama City, FL · Member since 2016 · 15 posts · 11 votes
10y
If you're even entertaining the idea of investing in Boulder, I'd suggest you do your own research in addition to what an agent or broker shares with you. At the moment you'll need DEEEEEEEEEEEEEP pockets to purchase anything here otherwise, it will take a lifetime to see a return.
With the way housing values have increased here it is no longer an asset market...it is a debt market, if you know what I mean.
Be careful, brother and thank you for your service!
Investor · Panama City, FL · Member since 2016 · 15 posts · 11 votes
9y
Same deal. From Colorado Springs all the way along the front range Ft. Collins! The Springs is more reasonable, but probably not for long until a market correction happens. Don't get me wrong, there are deals here, but few and you need to know your numbers. There are a lot of smart folks on here that will shoot you straight and REALLY know their stuff.
I love it here! The only thing negative I have with CO as it pertains to my livelihood is HOUSING. The debt burden people are taking on here leaves me shaking my head..."what are you thinking?"
When housing values increase as much as they have in the time that they have here...the house is not an investment...it's a liability.
Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
9y
Dylan Tettemer Colorado Springs is a lot better than Denver or Boulder. I have several friends that are either ex military or are double dipping at Peterson Air Force base. One lives in Payson, another lives and commutes from East of Colorado Springs (if you look at a map he's about 10 minutes west of 71) and I have a third friend that commutes from the mountains. All three are less expensive than the Springs and reasonable (currently).
Denver and North along I-25 are extremely expensive these days. Everyone wants to live here.
APO, AP · Member since 2016 · 168 posts · 54 votes
9y
Ed E. Chad Hawkins I won't be moving to Colorado until 2019. You think the market will be better then? I think right now Colorado just has a lot of hype at the moment.
Realtor · Colorado Springs, CO · Member since 2013 · 988 posts · 447 votes
9y
I might be a little biased but I truly believe Colorado Springs is a great place to invest! You're welcome to PM me or give me a call if you want to chat about our market here.
Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
9y
Dylan Tettemer I moved here from California in 1992 and with the exception of a couple of recession years everyone experienced...it's been gangbusters pretty much consistently. I bought my home in 1996 and had to bid up on the asking price - no different than what folks are doing these days.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
9y
@Dylan Tettemer what do you mean better? I would say this, interest rates will likely be higher. How much is anyone's guess. I think it's safe to say unless the financial world or the front range economy gets turned upside down, it will cost you more (relative to percentage of income) for your housing in 2019 than it does now. There is currently very high demand and low supply for housing. There is nothing on the near term horizon that would say that's going to change anytime soon. At some point there will likely be an over supply of luxury apartments but for now we are still not out of balance with supply and demand.
I just attended a presentation for real estate investing outlook yesterday. Right now we still have no end in sight. The last rent run-up lasted 10 years at 10% rent increase per year. We are about 6 years into the current run-up.
Real Estate Agent · Fort Collins, CO · Member since 2016 · 183 posts · 72 votes
9y
@Dylan Tettemer Hi there! I'm an investor up here north of Denver in Ft Collins and can attest that markets are growing strong. A lot of people manage properties out of state themselves and with the right software I bet you can do it. I recommend taking the extra time at the beginning to build strong relationships with a few vendors so that you can trust work you need to have done while you are remote.
Subscribe to @Bill S. and read all of his posts, by 2019 you'll be light years ahead of the rest:)
@Ian Walsh that is generally a good principle, but not the rule of thumb. I have to lake front properties 900 miles away that require very little of my time...mostly due to the fact that I have amazing tenants. It not unusual for me to forget that I have them until I get a notification on my phone once a month that proudly proclaims "You Got Money":)
Rental Property Investor · Denver, CO · Member since 2015 · 66 posts · 8 votes
9y
@Adam Rothweiler I live in Stapleton, was lucky enough to purchase in 2010, but prices have gone WAY up since that time. If you are looking to purchase a property for a rental, I think you'd probably be better off elsewhere as I don't think too many people are renting SFH in that part of Denver. OTOH, I know of people who have purchased new builds, lived in them for less than 6 months and are already listing well above what they paid. This is all appreciation based but something to consider.
the only area that I do know is too expensive for me to really make any money there right now
LOL ... I assure you it is possible to make money investing in expensive areas, if anything you can make more money. Talk to some local investors and I'm sure they will back up this statement. If you plan to move to Colorado in a year and want to invest there, my advice would be move there first, rent for a year to get the lay of the land and build your network, then invest there. I did this when I moved from LA back to OC and that time and rent money spent was a great investment in the long term.
the only area that I do know is too expensive for me to really make any money there right now
LOL ... I assure you it is possible to make money investing in expensive areas, if anything you can make more money. Talk to some local investors and I'm sure they will back up this statement. If you plan to move to Colorado in a year and want to invest there, my advice would be move there first, rent for a year to get the lay of the land and build your network, then invest there. I did this when I moved from LA back to OC and that time and rent money spent was a great investment in the long term.
I can never vote for David or Bill S. enough, actually BP limits this function and I have no idea why. And these gentlemen understand REI principles and fundamentals like the other 90% of Bpers don't. And that 10% difference is like night and day when it comes to returns/profits.
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
9y
Wow. I've been off the forums for a while, good to see Colorado is a major talking point. As far as moving in 2019, shouldn't be any different than if you were moving today. There are deals out there, just run the numbers, do your due diligence on the area and look at the economics. Timing any market is a gambling mans game, some will win, but most will lose.