Colorado Springs House Hacking - Best neighborhoods?

Question

What are the best neighborhoods to invest in for house hacking by renting to other young professionals? Where do most young pros in the area work/commute to and like to hang out/socialize? (I'm newer to the Springs)Looking to buy in COS in 2022. Late 20s single guy working at Peterson. Thinking house hacking would be the best real estate investment approach.

Budget 515k. I'm interested in living long-term in Broadmoor, Cheyenne Meadows, OCC, or Pleasant Valley with a hypothetical family but realize these may not be as good of locations for renting to young pros. But even still it might be nice to just get in to the neighborhood I want to be in long-term before prices keep rising further.

Where do you suggest I direct my search?

Thanks in advance!

James Carlson · Answer

@Greg M.

All Colorado Springs areas you mentioned are great. In general, I think the downtown and west side (Old Colorado City) is where it's at. The east side has so much potential for sprawl that you might find people chasing the next new build as opposed to buying your 10-year-old property, whereas you've got the natural barrier to growth (the mountains) on the west side.

To your actual question, though ... man, it's tough to go wrong right now. (Okay, maybe not the total southeast corner of Colorado Springs.) We've got a client who's done a few house-hacks in Colorado Springs -- in the 80918 and 80917 area codes. He also just bought in the Cheyenne Mountain area and is now doing well there. We've also had a lot of clients buy just east of downtown Colorado Springs (Shooks Run, Old North End, Patty Jewitt, etc.) and Airbnb a basement to live rent free if you're open to short-term rentals.

My personal opinion? I'd buy where you want to live. It's likely going to be a place others want to live as well. A house with nice clean rooms, a clean kitchen and clean bathooms will attract $700-750/room easily or $1,000 if you have a room in a basement that kind of gives that roommate their own space.

Good luck!

Colin Smith · Answer

Hey @Greg M.,

I would agree that the areas you've selected have some great options. We find young professionals rent in all area of town but certainly there are more popular areas over others.

It sounds like you are thinking this home is going to be long term for you. If that is true then I would encourage you to choose a long term home and focus less on renting to young professionals in that area. I've helped dozens of brand new investors purchase homes to house hack and they have all successfully found other young professional renters in every part of town.

Some things to take into consideration would be are you okay with very old homes in OCC or do you want something newer? Are you into hiking and want to be near trails or do you prefer to be very close to major shopping centers? Do you want more land, a newer subdivision, or want to be in an area that you may speculate for higher appreciation over time.

I would really recommend thinking about what the long term goal is and focus your energy there.

Greg M. · Answer

Thanks Jeremy! Commute is a good thing to consider especially long term. I'm drawn to the West side because of the natural beauty of the foothills and running/hiking opportunities. I'll be working with a non-VA loan. Conventional 30-year is my plan.

What areas would you recommend east of I-25? Personally, I don't want to go East of Academy or North of Palmer Park.

Jeremy Gaal · Answer

Greg,

You've picked some awesome areas to look at. What I would say is as people have come to the area, the commute from west to east is going to pickup and take longer. Are you prior military? If so your VA loan would likely really help you dig into your first place. OCC is a great place to get started but just remember that is going to mean smaller houses/lots potentially. I'm sure others will chime in, who can dig a little deeper into the market MLS wise but look forward to seeing where you end up

Loran Milliman · Answer

That is so smart - never occurred to me, so thank you.

Ryan Thomson · Answer

@Greg M. I agree with the others. All of those are areas where people will want to live. And I think most areas in the Springs you will be able to find young professionals to rent to. They are moving here in mass.

I think the most important thing for you to find is the right house. Does it have options to cashflow while you live there? And if you want to scale to another house hack the next year, does it have a good exit plan that will also make cashflow possible?

I've done three house hacks myself in the last 2 years and helped clients do the same. Buying a house with options is important to your success.

Colorado Springs House Hacking - Best neighborhoods?

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