Help Needed with some Market Research

5 Replies

Hi Everyone!

I’m an out-of-state apartment investor looking for some help. I need to branch out into a new state, and I’m doing some research on the Colorado. It looks like it could be a good fit for me and my investors.  Below are the criteria I’m looking for in the property:

  • 5+ Units
  • Purchase Price between $800K and $3M.
  • C-class properties in B/C neighborhoods
  • Light rehab (no full guts or extensive deferred maintenance)
  • Reasonable price. I don’t need home runs, I need base hits and doubles.
  • Less than a 45 commute to a major downtown area.

I’d love your help answering the following questions:

  1. Which city / market would you start your search in?
  2. What are some of the potential pros and cons of the cities I’d mentioned?
  3. What’s the price range per unit in the area?
  4. What’s the rent range per bedroom in the area?

Thanks in advance for the help!

Clinton

Hello!

I actually grew up in Massachusetts myself and am now currently serving in the military right in Fort Carson CO.  I would defiantly consider looking into the Colorado Springs area.  The area is adjacent to multiple military bases and the stable renting population that comes with that.  The area is also filled with colleges and all the nightlife and entertainment to support such a populace.  The average rents in the area for a 2-1 apartment run around 725 on the low end to around 1000.  I would consider most of the area to be in that C-B bracket.  A quick look on LoopNet I see two apartment buildings in your price range ( 112 Bonfoy Ave Colorado Springs, CO 80909) and (1707-1720 Metzler pl Colorado Springs, CO, 80905).  If you have anymore questions please just pm and ill answer any questions I can. 
                                

                                                     

Originally posted by @Clinton Holmes :

I’d love your help answering the following questions:

  1. Which city / market would you start your search in?
  2. What are some of the potential pros and cons of the cities I’d mentioned?
  3. What’s the price range per unit in the area?
  4. What’s the rent range per bedroom in the area?

 Ooof.  While you're not quite looking for a unicorn, I'll tell you that you'll be wrestling with a lot of competition at the horse races.

There are several cities that might work for you, but I'm really only familiar with the northern parts of the Denver metro area, so here's my list of where to at least start your search:

1.  Longmont

2.  Erie

3.  Brighton

4.  Northglenn or Thornton (maybe - price point is gonna be higher)

If you're willing to push your drive time to 1 - 1.5 hours, then go for

5.  Greeley

6.  Loveland

7.  Windsor

8.  Berthoud

9.  Ft Collins (starting to get pricey again though)

Most of the cities I mention above literally smell like cow poop when the wind is blowing from the east.  However, if you're looking to live in any of them, then you're probably already aware of it or used to it.  Most of them have seen significant appreciation in the last few years, but not quite the level as Denver Metro.

Price and Rent are going to vary depending on where you're looking.  Best advice here is to look at Craiglist, apartments.com or Rentometer to get a feel for rentals.  

@David Park Excellent advice. I will definitely take a look at the Colorado Springs area. Do you know how military personal find apartments? Is there someone at the base that helps find housing or is it entirely up to the personal and their family? 

@Linda Weygant Thanks so much for the detailed response. I'm going to put all of these cities on my list of places to research. If I decide to move forward on any of these, I'll need a good agent in the area to help me look. Can I come back to you for recommendations when the time comes? 

Thanks so much!

Clinton 

Originally posted by @Clinton Holmes :

@David Park Excellent advice. I will definitely take a look at the Colorado Springs area. Do you know how military personal find apartments? Is there someone at the base that helps find housing or is it entirely up to the personal and their family? 

@Linda Weygant Thanks so much for the detailed response. I'm going to put all of these cities on my list of places to research. If I decide to move forward on any of these, I'll need a good agent in the area to help me look. Can I come back to you for recommendations when the time comes? 

Thanks so much!

Clinton 

Yep.  I know several agents, but I'm honestly not sure if what you're looking for requires a commercial agent or not.  Most of my contacts are residential agents.  But I'm positive I can help you find the right people.

@Clinton Holmes  There is a list of recommended locations to go as well as a blacklist of places we can not go at the housing office.  To be put on the recommendation list I beleave all you have to do is call the post housing office and follow a set of guidelines and rules.  In general if you are married in the militay  you collect BAH (basic allowance for housing) were you can live wherever you want.  For this area it varies from what rank you are and town but the average amount is around $1,500 per month if you live off the installation.

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