Is Pueblo a good location for building RE portfolio and cashflow?

[Rita Samaddar]

Hello Everyone, We live in Colorado Springs (House Hacking) and looking to do our 1st BRRRR in Pueblo. Is Pueblo a good location for cash flow and future appreciation?
Our research says Mesa Junction, Aberdeen, Northside, Belmont, and Pueblo West are good locations. 

1> Are there any specific zip codes that you guys suggest?
2> Please feel free to suggest any good realtor, hard or private money lender, contractors, and property management companies that you are aware of. 

We are new to this so any advice is welcome. Thank you for your time and suggestions. 

Thanks,
Rita & Abhi

[Jordan Malara]

@Rita Samaddar If you're looking in Pueblo I would suggest Pueblo West (81007 - as you mentioned) or the north side of Pueblo (81001, 81008, or 81003). The further south you go, the worse it gets.

Overall, Pueblo is a decent investment market. The quality of tenants will be lower than what you will find here in the Springs, but acquisition prices are a bit better. I also think you will see greater appreciation in the Springs compared to Pueblo, but I am encouraged by how the City of Pueblo is doing what they can to revitalize the town. Hopefully that is a good sign for future growth.

One other key factor I'll highlight to make sure you are aware of is the new Fannie Mae/Freddie Mac regulations that went into effect in March 2023 regarding refinance timeframes. Essentially, most homeowners must now wait 12 months to refinance, whereas previously it was only 6 months. There are exceptions to this of course, but definitely something to look into as it could affect your BRRRR timeframe and plan.

Hope that helps and feel free to reach out if you have other questions!