New Investor in Denver CO

[Marcelo Chaparro]

I am a new investor and I dont have any property just yet, however, Im determined to start building my empire this year. I live in Denver CO and I understand prices are really high right now here and is also a "sellers market".

My goals however are:

1. Buy multi-unit properties that I can rent to produce cash flow and appreciation (But focus specially on the cash flow side)

2. Buy properties that are not that expensive, hence they can produce some good cash flow after all expenses have been paid including vacancy, CAPEX, repairs, taxes, etc.

I was wondering if any of you guys are familiar with the Denver market, maybe can tell me how good is to invest here (cash flow, appreciation, etc).

Also, any idea of where can I find some good multi unit properties to buy or recommended areas that have affordable prices and that can produce a good enough rent to have a positive cash flow?

Thank you for your help!

[Anson Young]

Marcelo,

Welcome!!  

Denver is a tough market for cashflow, especially now that prices have jumped so much (and dont look like they are going down anytime soon).  I'd consider this an appreciation market, you can find a LITTLE cashflow, typical deals are at the 0.75% for on market deals.  A 1% deal would fly off the shelf for sure.  In another market, a 1% deal is a terrible deal, but this is what we have for now.

As far as areas, well, there are many up coming areas, and we have no war zones, so it makes it a pretty even playing field.  Many investors are looking on the outskirts, globeville, commerce city, west colfax, etc. 

We have a meetup every month in Denver for real estate, called badass real estate investors if you want to come talk to a hundred or so real estate investors!