Denver Market - who’s knows it best???

3 Replies

Hello Everyone, I am a new investor looking for some suggestions when I comes to up and coming markets. I’m looking to utilize my young age and federal eligibility to buy my first investment property. I am particularly interested in the Denver area. Is anyone familiar with the city or know any good municipalities near by that offer good upside growth potential? On a side note, I am also interested in St. Petersburg, Florida! I’m really looking for a winter destination that is either warm or ski worthy. Thanks for any input or suggestions! Tom

Hey Tom!

That is great that you are researching the market before moving to make the most of your time/money spent here. 

Right now your search is very broad and with so many areas of Denver still realizing 8-12% appreciation per year (or more), it is hard to pinpoint one or two locations without further information. Are you looking for a neighborhood that is currently fairly inexpensive and is spending significant money (and hope to profit from the development/appreciation). A few areas that are inexpensive but have major upside potential would be near Sloan's Lake West of Denver, Edgewater, around Lowry south east of Denver. At the lowest end, there are some very inexpensive homes around Colfax and I-225, and they are spending a lot of money in the area on the hospital (think tenants) and commercial amenities (appreciation). If you are looking for a more "family friendly" type neighborhood that may already be a little more expensive but growing, you may want to check out Lone Tree that is growing extremely quickly due to a number of new companies moving out here, including a very large Charles Schwab HQ. Castle Rock is on the southern end and has some great potential with a ton of development coming into the area recently (including year round skiing and one of the largest shopping centers in the US when the mall and outlets are combined). All of these neighborhoods are  1 hr 15 mins - 1 hr 45 mins from the best ski resorts (or shorter for smaller ski resorts like Loveland). 

If you are looking for multi-unit homes with great cash flow and don't care about being right in Denver, the best cap rates and returns (as well as availability) are down in Colorado Springs (about 1 hr south of Denver). The price point is also significantly lower. Entry level home around $250k instead of $350k for a similar home in many Denver Metro areas. Multi units with good cap rates are very hard to find in the Denver Metro right now. 

For MLS searches - the Denver and Colorado Springs markets are on different MLS's - if you are considering both markets, make sure to find someone that has access to both areas.

Thanks for this information, @Phillip Bicker . I live in the Denver metro area and drove around Sloan's Lake the other day. It's great to see the revitalization going on there and along Colfax. 

Hey @Tom Conant

Well, I'm Denver's biggest fan, so take that into account, but yeah, Denver's great. Thriving restaurant scene, great beer, legal weed, 300 days of sun and the mountains right there. 

Are you looking to move to Denver or just to invest in Denver? I tend to be bullish about the Denver market, so I think long-term appreciation is still possible, but you have to get pretty creative to get really good cash flow. 

If you're moving here, there are some great opportunities for house-hacking, both with long-term tenants and with Airbnb guests. Sounds like you're young, so that might sound like a good option. There are definitely some people here who are covering their entire mortgage plus some cash flow by doing this. 

That said, if you're deadset on getting in on Denver just as an investment, there are a couple places that can do well. I think Athmart Park, parts of Barnum and occasionally still some parts of Villa Park. These are all getting the overflow of the Sloan's Lake development. Parts of east Colfax are actually getting better as well. I think Wheat Ridge still has some spots that are a good investment, especially if it's somewhat near 38th which can get quickly into Berkeley shops and Highland Square. 

Good luck!

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