Which is better to invest Austin or Denver?

Question

Hi there, I'm looking at purchasing small multi family (quad). Which do you think is the better investment Denver, Colorado Springs or Austin. Denver is so expensive for a crappy quad.  Has anyone invested in both of these markets?  Thanks so much, I appreciate. Tracie

Frank Wong · Answer

Hi Tracie,

If the price is not an issue then buy in Denver.  You being local to the area will make a world of a difference.   I have been to both cities and Denver just last month for the first time. Wow, what a beautiful place. Amazing downtown and lots of new construction everywhere.  The airport is deep though. lol

Chris Lopez · Answer

@Tracie Janoska You're going to have a hard time on getting good advice on this question for two reasons:

1) Very few people are experts in both markets. I know Denver extremely welll and am under contract on a quad now. I don't know the Austin market. Personally, I'm thrilled to ride the wave of growth that Denver will see over the coming decades. A growing population and jobs are great increasing rents and apprecation.

2) You're giving zero data on your expectations for returns and budget. You won't get any useful data since you're not outlining those.

Just looking at price point is not a good way to determine a return. Even though my quad is close to $900k, I'm expecting a 20%+ return the first year. When you look at all four ways you make money in real estate, Denver is still a great market. I'm using conversative numbers for apprecation and rent growth, not the crazy numbers that we've seen the last few years (those aren't sustainable.)

Remember, cash flow is only one way you're making money in real estate.

Ryan Kelly · Answer

@Tracie Janoska A lot will depend on your goals and budget. Certain parts of Austin have a number of quads to consider, while other areas have none. Both markets are red hot, but a solid deal can still be found. Feel free to DM me if you want to chat about the Austin market.

David Danforth · Answer

If you are looking for good multi-family economic information, it will be available on the commercial real estate websites like Marcus & Millichap, etc., they provide good annual information. Also each town will offer weekly/monthly business publications that can provide good insight, lastly the business sections of local newspapers provide good daily information.

Lauren H. · Answer

😂 run the numbers. I wouldn’t buy in Colorado unless I thought rents were going up another 25-30% real soon.

Jarrod Covey · Answer

Hi @Tracie Janoska - living in Austin does lend to bias, though I can say the economic growth in north Austin and the availability of quadplexes in a variety of conditions makes it a good market to consider a quad.

Tracie J. · Answer

Yes, it is awesome. It's over priced. That is why I'm entertaining other markets...

Tracie J. · Answer

Thank you, Chris. I'll reach out to you directly..

Jordan Moorhead · Answer

@Tracie Janoska I like Austin, I think there's a lot of growth still going on there. North Austin has quite a few fourplexes

Tracie J. · Answer

Thank you for sharing. What about Phoenix vs Austin, Which do you think is a better investment?

Which is better to invest Austin or Denver?

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