My name is Matt. My wife and I want to get started in real estate and are looking at a buy and hold strategy in the Pueblo area. The obvious attraction is the home prices down there compared to the rest of the state. My wife and I's biggest concern is buying in such a lower income area and are curious of peoples experience with low income tenants. Damage, theft, evictions? If anyone could weigh in we would love the feedback.
Thanks a ton!
Hi Matt, you read my mind with a question I would have likely first asked (being new here) and I’ll be curious to hear thoughts from others. I’m an independent insurance appraiser and work a lot of claims in Pueblo. Eager to learn more about the market and potentially buy my first rental there. I can vouch for working many theft claims in Pueblo. Most just being the result of vagrants breaking into vacant homes and cutting out all the copper plumbing for the salvage value, which can be a costly expense for the home owner but generally always covered by insurance, after the deductible of course. My two cents...
I appreciate the reply as well as the information. I have gone through a few BiggerPockets threads and seen a few people talking about staying clear of Pueblo but I didn't get a reason why. From reading through the forums it seems like a ton of people are doing business in low income, high poverty areas in the midwest and having great success so I guess my question would be. What would make Pueblo different?
I am a investor in Pueblo i have a few lower income rentals and I also do some flips in the mid to high areas. This how I see it I have seen the really bad and low income areas of springs as I used to work in springs full time, you get what you pay for. You want good tenants than buy in good areas. You want lots of cash flow buy in low income areas. This idea dose not change much from city to city, state to state. I have 2 house on the east side and they cash flow so great and I have the best tenants living there and have zero problems. I also have one in Bessemer and I am having problems with that house right now.
I would be happy to give to any info From what I know if you let me know what you want to see.
Thanks for the reply. So from what I understand the East side of Pueblo is a bit rougher? As far as new investor is their anything that can be done to minimize risk with tenants? Property management or not? What prices are you buying your rentals at and what are you getting monthly from them? Any leads on agents in the area?
Thanks a ton for the help, we really appreciate it.
I work with a great agent, she is not a investor agent but she works hard is not afraid to low ball offers and treats low price houses the same as 200k houses.
My 3 rentals are. 20k All in $550 a month. 32K all in $650 a month. 35K all in $700 a month. I am have bought them and rehabed them. But under 40k is getting really hard to find now. Like really really hard to find. Although we are coming into a good time of year to buy in my opinion.
If you wouldn't mind PM'ing me your agents name I'd appreciate it. Also, saw you're a FF'er, wife is a medic for Tri-Lakes FPD. Thanks for all the info.
I am an investor in the Pueblo area as well. I have 8 Properties on the East Side of Pueblo, including a commercial Tri-Plex. The community as a WHOLE in that area is trying to make it better. Most of my renters are from OUT OF STATE. Meaning a lot of people are coming to Pueblo from ALL OVER AMERICA. The City is Changing With all these NEW people moving in. Rents on that side of town are up, and i can get $950/month on a 3br. I am Destroying the 1% rule, as most of my acquisitions have been around the $30K-$90k all over Pueblo. It's way cheaper to live there, and most can't afford the cost of Denver, and NOW Springs. It's a Hurricane of money, headed down to Pueblo right now, and it's about to hit. As @Jason Eberhardt has mentions, it's getting harder and harder to find the deals that low of cost. That's because so many people are buying in Pueblo now, it's starting to be a competition on MLS. My mother was looking to buy a house in Pueblo West for $250K. It was gone the next day, before her agent put in an offer.
On another note, I own houses 3 houses on the West and North West Side and 4 Rentals on the South Side. All are doing very well. I purchased a commercial LOT in Pueblo West, right next to the NEW HIGHWAY from Pueblo Blvd to Joe Martinez Blvd. The highway will be built in the near future, and has already been approved and funded.
I also own 1 property in DENVER. It's a 1 acre Industrial Lot. It's off of I-76 and Sheridan. Rents for $4,000/month. Mortgage is $1,700/month. Owner Financed, $280K Purchase Price, $25K down. I'm looking for more of these, but do not want to buy Houses in Denver, as i will be putting down A LOT of money, just to get the same cashflow as I get in Pueblo, with WAY LESS Money.
Definitely appreciate all the information. I am sure I will have more questions as we move along with the process.
I just posted a new thread with these same questions, so thanks for getting the conversation started @Matthew Soll ! Commenting quickly while at my day job so I can come back and review all this great insight.
I'm convinced Pueblo is on an upward track considering their real efforts to improve the community and drive down crime, and it sounds like many others saw the inexpensive property values as an attraction. Looking forward to learning more from everyone here!
Hi @Matthew Soll , we moved our other business (unrelated to investing) from Louisville, KY to Pueblo May 2016 and see great opportunity here. I think Pueblo gets a bad rap but it's a great place to live and invest. We just started investing here less than 2 months ago and have been told that the deals are not as abundant as they were in the past few years (you can see that on Zillow for sure) and there are often multiple offers for anything close to a deal. We put a full price cash offer on a property last week for $86,500 and were outbid (there were 9 other offers). The house was no prize and would've required several dumpsters to remove all of the belongings (and animal feces). It needed about 17k in work but had an ARV of 125k. Not a lot of margin, but it would've made a great rental at a solid $1100/mo.
We have 1 rehab project underway with an estimated profit of 30-35k (we are in a 50/50 partnership so profit will be 15-17.5k each). Our other project will start in a couple of weeks and we will be all in for less than 55k and it should rent for $750/mo.
We have steered clear of the East side but there's tremendous opportunity there for rentals and cash flow. @Jason Eberhardt , I'm going to PM you about the East side...
Hello all I just moved to Pueblo from Pittsburgh PA and would love to meet up with any other fellow investors. I don't have any properties in Pueblo but do have experience with investing in Pittsburgh PA market (the big brother steel town).
I should be getting my license within the next 30 days as I just passed my exam. I was an agent/investor in Pittsburgh an am looking forward to being the same out here.
We have fantastic networking groups in Pittsburgh and I'm not seeing the same here in Pueblo. Maybe we can change this or perhaps I'm not seeing any or looking in the right places.
If anyone is interested in meeting up or starting a networking group down here let me know.
Welcome to Pueblo, @Chris Pasternak ! I don't know of any groups here in Pueblo but there are a couple in Colorado Springs. I'm not sure if it's ok to post them here and I haven't personally attended so please feel free to PM me.
Also interested in Pueblo, what’s going on with The superfund area? Are Amy lenders loaning for homes there?
Another one here interested in Pueblo as well. We just moved to Castle Rock back in July 2017 (wife and 4 boys) and I'm really considering investing again. I got interested in Pueblo due to its relatively affordable prices. I'm really getting a lot of good information just reading some of these threads - and thank you for all your input.
We just listed a nice little 2/1 in Central area on Arroyo. Could use some cosmetic updating listed at 67k. Could rent for 700-750. Nice little 1% guideline single family.
Yes their are lenders for the superfund area. Can get you specific lenders for this if you're interested.
@Chris Pasternak I am interested in those lenders. As well as anyone who would want to owner carry in that area as well.
I'm told Mortgage Solutions will lend there but it is hinged on the appraisal and how they might input it
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