Colorado springs market insight

[Jonathan Beemer]

I am invested in a market in which appreciation is slow but cashflow is great. I love Colorado and especially Colorado springs. Id love to hear from current investors what their investment strategy is in an expensive market. are you still getting cashflow or banking on appreciation?
what prices are you finding off market deals and rents?

for example investment criteria here is usually 115k or under. and rents come out to 800-1400...

any insight would be great.

Colorado springs, colorado, pueblo, el paso county.

if your in the springs contact me. would love to converse.

[Colin Smith]

I personally invest in Colorado Springs and currently own everything from single family, multifamily, mobile home park, and commercial all in town. Colorado Springs is not a great market if you're looking for cash flow right out of the purchase. If anything, a good deal here is something that breaks even on the cash flow after all expenses upon purchase. These days, even those deals are getting harder to find. The appreciation has been significant over the last several years and I suspect property here will continue to appreciate over time, both from overall property value appreciation but also the rents are appreciating which helps owners with their cash flow.

I personally like multi-family properties the most, especially for newer investors as the properties being sold are often in such a condition that allows for cash flow to come into play after some renovations or lease improvements in the first couple years. I frequently see 4-plex's that have original kitchens from the 70's and 80's, have neglected maintenance over long periods of time, or even have leases that are several years old without any increases in rental rates. That being said, investors need to keep in mind they need cash for both purchase and renovations as the property won't cash flow enough right out of the gate to cover those capitol expenditure needs right away.

This probably sounds depressing for many investors looking to invest in Colorado Springs. The upside is we have been a stable market in the worst economies and we are continuing to grow as we have been #1 city in the nation for one reason or another almost every year after the last decade. I believe this trend will continue as our workforce allows for more work-from-home employment.