Rental Investing: Greater Denver Area

[Preeti Sampath]

Hey everyone, 

I am looking to invest in a rental property in Greater Denver Area. I would like to hear some opinions on the following: 

I am torn if I should invest in a property under $350,000 or look at a more higher end property. I am also keen on duplex or triplex with a house hack. If I find the right multi family unit for the right price, would that be something to look at in the expensive market like Greater Denver area? (I love the 3.5% FHA loan idea). I am also looking outside Denver such as Longmont, Loveland, Dacona but am worried if these areas would make a good long term investment or good rental areas. We all know you pay for the location!

I am new investor so any feedback is appreciated. 

Thanks, Preeti

[Matt M.]

Where do you work? I wouldn't move too far from the office. Any "plex" comes at a premium right now, so it will be tricky to find one at the right price. You'll have more options with a SFR, but that means sharing space. I'd avoid FHA if you can. You'll have a funding fee along with PMI that you'll probably have to refi to get rid of.

After a year, keep your purchase and get another one.