Pueblo Colorado Market Updates

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Pueblo Colorado Market Updates

Robert Herrera
Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes

Hello all, it’s been a while since I posted anything about the Pueblo Market.

Personally, I’m doing both Buying and Selling.

Properties have appreciated well and I’m cashing out on properties that are no longer producing good returns. This is compared to the equity locked in the property. Making $6,000/year on a property with $100k equity built up is only 6% and has to go.

I plan to redeploy the capital back into the market. Properties are still meeting and beating the 1% rule so I’ll buy.

I’m expecting this whole house of cards to come down, and crash. Then it’s back to buying more properties.

What is everyone else seeing? What are your plans for Pueblo

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Sam Dangremond
Investor · Pueblo, CO · Member since 2012 · 96 posts · 63 votes
5y

I'm still BRRRR-ing right along.

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  • Jeff WhiteBusiness Member
    Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
    5y

    @Robert Herrera Have you done lease options outside of Pueblo? I wonder if that would work here in Denver? 

    1Reply
  • John Clay
    Member since 2019 · 18 posts · 7 votes
    5y

    @Robert Herrera & @Adam Christopher

    Thank you for the great details--I will have to read this a few more times for full get my head wrapped around this.  My work is on the east side of Pueblo. I started my project in early December, from what I have been able to see the town of Pueblo is getting a lot of positive attention.  Over the last 3 months I have seen at least 5 projects start on the east side by 10th st. From what I can see the town needs more quality rentals, the market is hot and deals area a bit hard to find.

    Im in Pueblo 3 to 4 days a week, if you guys want to see my project pass me a message. Im excited to meet local investor in the Pueblo market. Cheers!

    1Reply
  • Robert Herrera
    OP
    Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    5y

    @Jeff White

    Yes I did this on our personal home in commerce city. We bought for $125k if I remember correctly. Our payments rounded up were $900/month PITI. We rented it for $1,900/mont with I believe was $10k received as an option fee. Sold later for a gain of $75k after all fees of selling the place on the market.

    0Reply
  • Robert Herrera
    OP
    Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    5y

    @John Clay

    I’d love to see what you have going on. I’ll be in Pueblo again soon, maybe next week

    0Reply
  • John Clay
    Member since 2019 · 18 posts · 7 votes
    5y

    @Robert Herrera

    Outstanding, would be great to get your point on view, If I’m over rehabbing or on par. I’ll be in Pueblo next week. Look forward to connecting!

    1Reply
  • Brooke Stewart
    Member since 2019 · 3 posts · 0 votes
    5y

    @Michael Wentzel would love the info for your property management company and lender, looking for a more reliable real estate agent down there too if you have one you trust. Thanks!

    0Reply
  • David Avery
    Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    5y

    As a investor/contractor  Pueblo Colorado has been one of the hottest cities I have ever done deals in. I did over 40 properties for investors, wholesalers, Real Estate agents and 5 for myself over 38 months!

    Look at these deals done in the past 4 years! (reraltor.com)

    121 W Evans Avenue    Pueblo Colorado                            paid $53K  product and labor help $31 sold ( look this up, yes five figures on one deal)

    2215 West Street        Pueblo Colorado  Paid $53K in $26K ,  Made  over $80 K after closing!

    125 Idaho      Pueblo Colorado   Paid $41.200   in $16 K    Did almost as good!!

    I have the agent that took care of me!!!

    Hot hidden spot .

    1Reply
  • David Avery
    Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    5y

    Here is the Real Estate agent that you need.

    Edd Fishlock  with Keller Williams  719-453-8593

    1Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    Pueblo might be one of the best CO BRRRR markets from what I've seen on deals from the lending side. Similar to the Central Valley in CA it's a city which can defy a lot of the norms of its state.

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    0Reply
  • Michael Wentzel
    Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
    5y

    @Brooke Stewart

    We have been using Keystone Property Management since we started buying in Pueblo in 2013. We highly recommend them.

    Mike

    1Reply
  • John Clay
    Member since 2019 · 18 posts · 7 votes
    5y

    I just completed my first remodel in Pueblo and the number of people wanting to buy in the area is unreal!

    Checkout 909 E. 10th 81001 on Realtor.com

    Im looking to complete two more remodels this year

    Meagan Kroeze with KM has been an absolute Rockstar!!

    1Reply
  • Brooke Stewart
    Member since 2019 · 3 posts · 0 votes
    5y

    Beautiful property @John Clay! Did you buy it off market, I don't see info on purchase price ect. 

    I might need to reach out to Meagan, so far I've been super underwhelmed with the realtor response in Pueblo.. I get every market is "hard to buy in" right now, looking for someone to tell me "heck yea we are going to find you a house" instead of the doom and gloom of low inventory. 

    0Reply
  • Jason Richards
    Lender · Greenwood Village, CO · Member since 2016 · 40 posts · 20 votes
    5y

    Congrats, @John Clay!  Yes, Pueblo is on fire right now!  Lead Funding has been bullish on the Pueblo market for a few years now.  Only recently have the prices begun to rise at rates more comparable to primary markets.  

    If ever you're interested in exploring your options for funding more deals in Pueblo, shoot me a message.  We would love to work with you on your next project!  

    0Reply
  • Chris Pasternak
    Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes
    5y

    John Clay I had a buyer with that place under contract before.  Unbelievable renovation great job!

    0Reply
  • Adam Christopher Zaleski
    Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
    5y

    Maybe this is obvious, but I wanted to share that I bought my primary residence in Pueblo West in November 2019. The house went on the market in the middle of September and we closed on November 1, 2019. We paid 280K. It is my opinion that if the seller got the house on the market in May 2019, he would have got 300K for the house. He missed the summer window. We were competing against less people in September. Pueblo West seems to have many families with kids. Most of the those people like to house shop during the summer months.  

    0Reply
  • John Clay
    Member since 2019 · 18 posts · 7 votes
    5y

    Thank you very much @Chris Pasternak The house was falling apart as you know. It was a big undertaking for my first project! We should connect next time I'm in Pueblo

    0Reply
  • John Clay
    Member since 2019 · 18 posts · 7 votes
    5y

    @Adam Christopher You bring a great point. If demand is high now the summer will be out out control, would like to know the listing inventory in Pueblo. I have a feel this summer, houses are going to sale for record high prices all over Pueblo and Fountain as well. 

    0Reply
  • Adam Christopher Zaleski
    Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
    4y

    In June-August, I raised rent on 3 units (1600 to $1650, $1850 to $1950 and $2900 to $3200). For my unit renting for $1950, the price shot up right after I got a lease in the middle of June. ZIllow is now estimating the rent to be $2350/month. Based on the rental comps, it looks accurate. This supports my claim that increases in rent typically lag a few months behind increases in real estate sale prices. 

    0Reply
  • Laura MacDonald
    Member since 2017 · 28 posts · 8 votes
    4y
    What are the primary economic factors affecting the Pueblo market right now? Meaning does anyone know if there are new employers moving into the area? etc?  Trying to determine where in CO to invest and am just starting to look at Pueblo.  TIA!
    0Reply
  • Bill Ledebuhr
    Member since 2021 · 1 post · 0 votes
    4y

    @Laura MacDonald I have the same questions!

    0Reply
  • Chris Pasternak
    Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes
    4y

    @Bill Ledebuhr @Laura MacDonald  check out PEDCO: www.pedco.org.  They were established to find and retain employers.

    1Reply
  • Adam Christopher Zaleski
    Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
    4y

    I have a single family rental in Florida that I rented for $1950/month in June 2021. The fair market rent was $2050/month. Now 6 months later, the fair market rent is $2400/month. 

    If you have houses that appreciate quickly, I would wait 6 months to see what the rents do before you sell them and conclude that the cash flow is poor. In my experience, rents lag housing appreciation by about 6 months. 

    0Reply
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