New to CO Advice Requested

12 Replies

Hi future fellow Coloradans,

My wife and I are moving to Denver in the coming months and I want to take this opportunity to start my REI investing.

I am targeting properties in the $80k per door range. Do any of you have suggestions on areas to look at, or lenders, agents, PMs to connect with?

I appreciate any advice/responses!

-Andrew

That is going to extremely difficult in the Denver metro area. You may be able to find some cheap condos around 100k per door, but anything else will be very tough. You will likely have to look at other markets for that type of price range. There are some other markets in Colorado (Fort Morgan/Brush, Pueblo, etc.) that may be able to give you that type of price range per door. I am not too familiar with any of those markets though and they are much, much different than the Denver market.

What type of investing are you looking to get involved with? Long term rentals, fix and flips, wholesales, multifamily buy and hold?

@Bob Collins Multifamily buy and hold, preferably a Class B value-add with 3-4 units. What is the price per door that you generally see in the Denver Metro Area?

Welcome to CO and good luck!  We are looking outside the Denver Metro area to get started as the price for entry is too high for our current situation.  Considering Colorado Springs and a few other areas as well into the midwest.

You might be able to find something in southwest Denver for 150-200k per door (needing a lot of work). Outside of Denver, look into Aurora and Lakewood. And if you are willing to go outside Denver Metro, Pueblo and Colorado Springs might be in your current price range. There isn't much on MLS right now, so you might have to use alternate means. Least expensive 3 unit on MLS in Denver right now is 750k.

Hillary Gries, Appraiser in Colorado (#CR40028697)

Hey @Andrew Reyes ! I moved here from Brooklyn 3 years ago. Literally the only place to find those values is in Pueblo, as Hillary mentioned. I've visited a few times to scope it out, and meet with local investors there. Feel free to PM me to chat more. I'll also be back in Brooklyn from 12/29-1/7, so if you have a chance to meet up, let me know!

@Andrew Reyes I would basically just echo what has been said here. As far as small multi-family goes in the Denver Metro, you will be hard pressed to find anything under about $140k per door. As was mentioned earlier, there are some condos that you can find that would go for around $100k, but these will also be burdened by an HOA (typically around $200/month - but can be much higher).

In Colorado Springs, you would be able to find something around $80-90k per door. 

As an agent that services both Colorado Springs and Denver metro, I advise most of my clients to look toward the Springs for better returns, strong rental demand, and much better inventory (as there are opportunities the Springs and next to nothing in Denver as far as multi-family goes). 


Good luck with your search!

Phillip Bicker, Real Estate Agent in CO (#FA100069146)
Originally posted by @Andrew Reyes :

Hi future fellow Coloradans,

My wife and I are moving to Denver in the coming months and I want to take this opportunity to start my REI investing.

I am targeting properties in the $80k per door range. Do any of you have suggestions on areas to look at, or lenders, agents, PMs to connect with?

I appreciate any advice/responses!

-Andrew

 Jump on any of the sites that list properties for sale. REcolorado or Zillow or Redfin and filter by property class (income) and you will see what's available. Hint not much and nothing anywhere close to $80K per door in the Denver metro. Currently there are 8 "income" properties on REcolorado.com in whole Denver metro under $200k and none of them have more than one unit.

As many have already said.  It is going to be EXTREMELY difficult to find anything for $80K per door in Denver.  Without it being a total re-build in a not pretty area.  I would suggest looking outside of Denver, either farther north or south.  Castle rock is a good area and close to Denver still, though it's prices are also currently going up.  The next stop would be Monument but it is a very small town of about 10,000.  After that you hit Colorado Springs which is about an hour to an hour and a half depending on the area your looking at.  House in CS aren't as high as Denver but they are starting to see the creep since many homebuyers are getting priced out of the Denver and Denver's suburbs are going farther south.

On another hand, there are many real estate groups in the area that you can meet up with network and meet fellow investors.  Also, WELCOME to Colorado!   Why did you choose Colorado to move to?

Thank you, @Jennifer Delmore . I understand your concerns, coming from NY I imagine my sense of cost to enter the market is skewed. I would love to hear your thoughts on midwest cities you think are reasonably priced.

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