Hi all. Let me preface this by saying I totally agree that you can find good deals in any market. That said, it certainly seems like it's harder to do in some markets now due to rapid growth in recent years.
I've heard a bit of talk that Denver / Boulder area has blown-up super fast and the deals are harder to find now.
What are your thoughts on investing in between Denver and Boulder (Westminster/Superior/Broomfield)? Still worth looking into or is it too late? Not necessarily limited to type of rental investment, I'm open to rehabs, new construction, house hacking, duplexes/triplexes.
Just gauging general thoughts and sentiment around this area. Appreciate any and all advice.
I've seen more deals this year than I have over the past 6. They can be found, but the real ones are off market. I haven't bought an "on market" deal since 2013.
I've seen more deals this year than I have over the past 6. They can be found, but the real ones are off market. I haven't bought an "on market" deal since 2013.
There’s always a deal out there but you’re right the market is tighter in those areas. You just have to know what you want and be ready to jump. House Hacking works best. I showed a client a potential house hack last week in Westminster that worked well and was a great property. In the areas you mentioned, duplexes and triplexes aren’t very common. Westminster does have them but not really Broomfield and Superior.
I was told I missed the boat when I first moved here 20 years ago, but I'm so glad I bought in anyway. It definitely feels like overpaying at times when looking at what prices were a few years ago, and especially what you can get for the same money somewhere else, but this market has never let me down. Still buying now, closed on a deal last week. Seeing a lot more multifamily deals this year than the past few, as well as value add single families. People are moving here and looking for move-in ready but competition isn't as fierce on anything with warts. I like warts.
Denver and Boulder are definitely tough markets, in terms of regulations and high prices. The surrounding areas however there is still great potential in either traditional rentals or House Hacking. House Hacking is especially lucrative because of the low initial capital that is required. Broomfield is tougher because of their zoning regulations (like boulder and Denver) so makes rent by the room House Hack harder. Rehabs are not necessarily worth it unless you are able to get a fantastic off-market deal. You just aren't seeing that value add opportunity here as you do in other markets, you put 40k into rehab, you usually get 40k of value. Duplexes/triplexes are hard to come by and thus come with a high price tag.
My personal suggestion is looking at the Denver Metro Area, and doing a House Hack with rent by the room, or finding a single-family home that you can turn into a quasi duplex, either through a basement with a separate entrance that you can block off and make a separate unit downstairs.