Updated over 9 years ago on . Most recent reply
Typical ROI in Denver Area
I'm just beginning my journey as a REI and started to shop around for deals, but having a tough time finding a 10% ROI. Is a 10% ROI typically achievable in the Denver area or should I start to lower my standard to around 7% or 8%. Also, I have begun reading "The book on Rental Property Investing" and Brandon is adamant about buying homes for 80% of listing valve. I realize this is the first step in success. Is the Denver market open to such opportunities?
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@Skyler Pearson I think your ROI question is covered in this blog post by @Scott Trench. I would also clarify. 80% of "listing" value can in some cases not be a bargain. For example if a property is listed at 120% of what other similar properties are selling for then 80% of that price is no bargain. You want 80% of market value. This means you can turn around and list the property tomorrow, sell it quickly and get your money back. Only in very very rare occasions will you find a property listed on the MLS in Denver that would meet that metric. You get that kind of value by finding off-market deals that only a few people know about.