I am moving from Canada to Denver Colorado - Tips & Suggestions

5 Replies | Denver, Colorado

Hello Denver,

I am looking to relocate to the USA from Canada through an EB-5 investor Visa. I love the city of Denver and want to pursue my real estate career here. This would be a long-term business decision.

I am looking to build spec homes as my active income and to build rental properties for my passive income. From the sounds of it developers/flippers seem to be doing alright in Denver. Can someone please confirm this?

My real concern right now is with the rentals. I would be building rentals so I can cash out refinance my deals. I heard its a tight market and difficult to cashflow. Does this still apply if you’re building 5+ unit apartment buildings?

Will Denver still be an investor friendly city 10 years from now? How are developers doing in the city right now? If not Denver, are there any other recommended big-ish cities in the USA?

Regards,

Our land, water, and now labor costs are jumping up quite a bit. The hardest part will be finding a deal that makes sense to your bank account. Flippers are having a difficult time generally with tighter and tighter margins. 

Do you have any real estate experience?

Hi Andrew,  Welcome to Colorado. If you find the right land and can get a good solid construction team it could work. I know there was a piece of land just north of Denver that was zoned for multi-family housing. With the growth up here including the Amazon facility and the new outlets there should be lots of potential renters.  

I think the challenge would be how long before you get your money back out. As a long term play, rents are only going up. 

Good Luck. 

@Matt M.  Thank you for your reply. I should mention that I am still in the preliminary stages of deciding what city to relocate to and not 100% set on Denver, especially now since it sounds like Denver has already peaked. Yes, I have experience with spec homes / new construction.

@Kevin Grinstead  Thank you for your input! Much appreciated. 

Originally posted by @Andrew R. :

Hello Denver,

I am looking to relocate to the USA from Canada through an EB-5 investor Visa. I love the city of Denver and want to pursue my real estate career here. This would be a long-term business decision.

I am looking to build spec homes as my active income and to build rental properties for my passive income. From the sounds of it developers/flippers seem to be doing alright in Denver. Can someone please confirm this?

My real concern right now is with the rentals. I would be building rentals so I can cash out refinance my deals. I heard its a tight market and difficult to cashflow. Does this still apply if you’re building 5+ unit apartment buildings?

Will Denver still be an investor friendly city 10 years from now? How are developers doing in the city right now? If not Denver, are there any other recommended big-ish cities in the USA?

Regards,

 So it's competitive here in Denver. Based on the numbers I have seen, building apartments and then refi-ing and getting your money out is a thing of the past. Labor and material costs have driven the metrics out of whack. Developers of for sale homes seem to be doing ok. There have been some zoning law changes in Denver proper that have reduced density (further restricting supply). If you can deliver a product below the media home price (~$450K) you will have no problem finding buyers. If you are over the $1M mark in sale value, I would proceed with caution. The numbers say that the demand for "for sale" homes still has lots of legs left on it. In the rental market, the numbers say we are topping out or leveling off at best especially in the $2,000+ per month price point (supply way out strips demand). There is still huge demand for units at or below the average rental price of about $1,400 per month for a 2 bed.

If you know what you are doing, you should be able to make it work here.