Denver, CO Real Estate

4 Replies

Denver is often mentioned in real estate publications as being a hot spot. I live in Texas currently and I am thinking about moving there. I'm looking to meet people in the real estate industry who know about Denver, who have invested there and those who live there.

Anthony

Any relation to Armando from SA???

Our market isn't very good for flippers and wholesalers. Deals are EXTREMELY scarce. You have to really commit to making it here. I wouldn't move shop up here to start wholesaling. No joke. 

There are a number of people I know personally that have moved their investing out of this State. 

Matt, so your saying that buy and hold is the route to go in Denver. Im a new investor from California and considering building my buy and hold portfolio in Denver for mainly tax reasons, so just curious what is in fact a good strategy for investing in Denver. Thanks!

Originally posted by @Val Gil :

Matt, so your saying that buy and hold is the route to go in Denver. Im a new investor from California and considering building my buy and hold portfolio in Denver for mainly tax reasons, so just curious what is in fact a good strategy for investing in Denver. Thanks!

I'm not saying that. HOWEVER, there are deals to be had. What I'm getting at is that it isn't easy to wholesale, flip, find rentals, etc here in town. You have to commit a lot of time, etc. Moving to a new market especially this one, will be difficult. 

If you personally need to park some funds and be ok with banking on appreciation, then you can find what your looking for. With that being said, I'm getting geared up to look pretty on paper to pull the trigger on a few rentals, BUT the return numbers need to make sense, not just potential appreciation.

Hi @Anthony Montelongo

I think that what @Matt M. is spot on. I think that investing in Denver makes the most sense if one or more of the following are true:

* You'll be local and able to handle lots of the work yourself to avoid negative cash flow on the properties

* You plan to hold the property for a long time and are prepared for the possibility of a correction in prices, or stagnation in price growth over the medium term

* You plan to do extensive marketing to outcompete local, experienced investor that will put you in a situation where the two points above are moot because you are getting such a good deal. Expect to need cash for this to work

* You are a developer, buying properties that are in significant distress, scraping them, and building new properties that can sell for top dollar

Personally, the first two points are true for me, and I expect that over a long period of time, like 20+ years, patient Denver investors will be rewarded more so than investors in other parts of the country. But, I certainly don't invest with that hope at the expense of losing money on an investment via negative cash flow!

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