Seeking Advice: Local Metro or Nearby Rural Real Estate Investment?

[Robert-Lee Pass]

Hello fellow forum members,

I hope this post finds you all well. I'm within 90-120 days of making my first Investment purchase BUT I'm currently at a crossroads and could use some valuable insights from the experienced members of this community. I'm in the process of deciding where to invest in real estate, and I find myself torn between two options: The Local Metro area of Colorado Springs and the Nearby Rural region of Pueblo West, CO.  (NOTE : 30+ year hold , LTR, Appreciation is the goal cash-flow will become more valuable the older I get (hence the 30 year hold),  Duplex , 3/2/2 1500 per side 2024 build date in Rural Location. 

Each option has its own set of pros and cons, and I'm hoping to gather opinions and advice that could help me make a more informed decision. Here are some key factors that I'm considering:

1. Potential for Appreciation:
   • Local Metro: The urban environment often sees faster appreciation rates due to high demand and constant development.
   • Nearby Rural: While rural areas might not experience rapid appreciation, they can offer steady growth and potentially lower entry points. --> The building construction is brand new vs something at least 25 years old in the city.
     
   • --> Its about a 45 Min drive to reach the Colorado Springs Metro's Most southern city 'fountain', this is where I own my current House Hack/Personal home
2. Rental Income:
   • Local Metro: Rental demand tends to be high in metropolitan areas, attracting a diverse tenant pool.
   • Nearby Rural: I Have great comps as the neighborhood is just being built (6 other new builds with same floor-plan sold in that neighborhood in the last 2-3 years), there is a k-5 school on the same street in the neighborhood of the Rural build. 
3. Long-Term Development:
   • Local Metro: Ongoing development projects can positively impact property values over the long term. but probably wont increase at the same speed % wise as the more rural location.. maybe I'm wrong ill have to research now .. 
   • Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile
4. Personal Preferences:
   • Local Metro: Older build , more expensive (at best its 0-100 cash-flow), higher rents, larger tenant pool
     
   • Nearby Rural: New build , cheaper (Will cash flow +500), rents a little softer but demand for new products and neighborhoods is real, tighter tenant pool.
     

Because this will be my first Multifamily as well as my first time being a landlord , I'm very much in love with the idea of very low CAP Ex Repairs needed in the first 5 years, the tenant quality applying to a new build unit in a new community, Just a much nicer and newer product for the money . I'm 30 years it would be nice to have a property that rents like a 1995 house does today and not a 50-70 year old property like a 1970 would be at year 30. Location of the unit is right up against that Lake Pueblo State park too. I actually frequently go there with the family in the summer.

I would greatly appreciate any experiences, advice, or considerations that could help me weigh these options more effectively. Have you invested in either a Local Metro or a Nearby Rural area? What factors did you find most crucial in making your decision? Any lessons learned or pitfalls to avoid?

Thank you in advance for your input. I'm looking forward to a discussion that will hopefully guide me toward making a well-informed choice.

- Robert-Lee

[Robert-Lee Pass]

Bump

[Robert Ellis]

Quote from @Robert-Lee Pass:

Hello fellow forum members,

I hope this post finds you all well. I'm within 90-120 days of making my first Investment purchase BUT I'm currently at a crossroads and could use some valuable insights from the experienced members of this community. I'm in the process of deciding where to invest in real estate, and I find myself torn between two options: The Local Metro area of Colorado Springs and the Nearby Rural region of Pueblo West, CO.  (NOTE : 30+ year hold , LTR, Appreciation is the goal cash-flow will become more valuable the older I get (hence the 30 year hold),  Duplex , 3/2/2 1500 per side 2024 build date in Rural Location. 

Each option has its own set of pros and cons, and I'm hoping to gather opinions and advice that could help me make a more informed decision. Here are some key factors that I'm considering:

1. Potential for Appreciation:
   • Local Metro: The urban environment often sees faster appreciation rates due to high demand and constant development.
   • Nearby Rural: While rural areas might not experience rapid appreciation, they can offer steady growth and potentially lower entry points. --> The building construction is brand new vs something at least 25 years old in the city.
     
   • --> Its about a 45 Min drive to reach the Colorado Springs Metro's Most southern city 'fountain', this is where I own my current House Hack/Personal home
2. Rental Income:
   • Local Metro: Rental demand tends to be high in metropolitan areas, attracting a diverse tenant pool.
   • Nearby Rural: I Have great comps as the neighborhood is just being built (6 other new builds with same floor-plan sold in that neighborhood in the last 2-3 years), there is a k-5 school on the same street in the neighborhood of the Rural build. 
3. Long-Term Development:
   • Local Metro: Ongoing development projects can positively impact property values over the long term. but probably wont increase at the same speed % wise as the more rural location.. maybe I'm wrong ill have to research now .. 
   • Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile
4. Personal Preferences:
   • Local Metro: Older build , more expensive (at best its 0-100 cash-flow), higher rents, larger tenant pool
     
   • Nearby Rural: New build , cheaper (Will cash flow +500), rents a little softer but demand for new products and neighborhoods is real, tighter tenant pool.
     

Because this will be my first Multifamily as well as my first time being a landlord , I'm very much in love with the idea of very low CAP Ex Repairs needed in the first 5 years, the tenant quality applying to a new build unit in a new community, Just a much nicer and newer product for the money . I'm 30 years it would be nice to have a property that rents like a 1995 house does today and not a 50-70 year old property like a 1970 would be at year 30. Location of the unit is right up against that Lake Pueblo State park too. I actually frequently go there with the family in the summer.

I would greatly appreciate any experiences, advice, or considerations that could help me weigh these options more effectively. Have you invested in either a Local Metro or a Nearby Rural area? What factors did you find most crucial in making your decision? Any lessons learned or pitfalls to avoid?

Thank you in advance for your input. I'm looking forward to a discussion that will hopefully guide me toward making a well-informed choice.

- Robert-Lee

 don't buy in rural anywhere. property values are lower, rental interest is lower, new construction comps are harder to come by. we build in Columbus Ohio and the things I look for are subdivisions within 5 miles from a large builder delivering at least 2 homes a month or more, 30 miles or less to the city center, public utilities, no flood plain, etc. I'd pass on the rural deal. especially for new construction. I just had a person ask about building in rural areas in Central Ohio and resale is much harder. urban core appreciates at much higher rates. we plotted at least 200 subdivisions in our market and the furthest one was 35 miles from the city center 

[Robert-Lee Pass]

OK, just to clarify I would have never considered this place Rural in the literal terms. I only referred to it as that because when i ran the neighborhood scout report it came back saying density was rural.

Ill try to attach the report here to this thread not sure if i can do that . below ill also give some general stats so you have a better idea of the "Rural" I'm talking about.

Population of Zip code : 34.3K as of 2022 Dec +4% from Prior year
Population of County :

[Robert-Lee Pass]

I'm headed to go walk one of the duplex's today in a couple hours. I hope the above info gives better insight to the actual size of the zip code.

if I wasn't so shy to out of site investing id be having a much easier time selecting location

[Max Ferguson]

Hey there, I would be happy to give you my thoughts on your strategies if you want to set up a call. 

the underlined statement is completely incorrect though unless I am misunderstanding:
" Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile "

Pueblo and Pueblo west are the same city. Pueblo West has tried to become a city independent of Pueblo but were unsuccessful. I encourage you to look at crime statistics for the entirety of the city......

With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West. Much better cash flow than the springs but will incur far less appreciation IMO. I am personally considering buying multifamily there in the future as well. 

If anyone knows anything different feel free to chime in if I am missing something. Both have pros and cons and it is great to see the research you are putting into it!

Feel free to reach out whenever. I also have a friend looking to offload a large number of multifamily doors in the Pueblo area, not sure how many he has in Pueblo West though. 

Good luck man, you'll crush it regardless of what you decide!

[Alecia Loveless]

@Robert-Lee Pass I have been investing in a more rural area for a long time. In about a 50 mile radius of 6 towns there’s maybe 45,000 people if even that many. We are surrounded by state and national forests as well as several ski mountains and golf courses.

The largest town has about 9,000 people and does have a Home Depot, Lowe’s, Walmart, Applebees, and a 99 Restaurant which is New Englands version of Chilis.

While the cost of entry is much less than towns farther south in my state things still start around $350,000 now. When I started back investing 4 years ago the price point was somewhat lower.

I have seen significant amounts of appreciation in the past four years but prior to that the area was still seeing 5-7% per year in appreciation.

I don’t see anything wrong with you buying the new construction property in the “rural” area if that’s what you’re leaning towards. As long as you take into consideration the possibility of a slightly longer vacancy factor in your calculations I think you should be fine.

You say you want this as a long term hold property and you never know what may happen in the next 10-20 years. People may flock to Pueblo West to get out of the city. This duplex may become the best investment ever!

[Robert-Lee Pass]

Quote from @Alecia Loveless:

@Robert-Lee Pass I have been investing in a more rural area for a long time. In about a 50 mile radius of 6 towns there’s maybe 45,000 people if even that many. We are surrounded by state and national forests as well as several ski mountains and golf courses.

The largest town has about 9,000 people and does have a Home Depot, Lowe’s, Walmart, Applebees, and a 99 Restaurant which is New Englands version of Chilis.

While the cost of entry is much less than towns farther south in my state things still start around $350,000 now. When I started back investing 4 years ago the price point was somewhat lower.

I have seen significant amounts of appreciation in the past four years but prior to that the area was still seeing 5-7% per year in appreciation.

I don’t see anything wrong with you buying the new construction property in the “rural” area if that’s what you’re leaning towards. As long as you take into consideration the possibility of a slightly longer vacancy factor in your calculations I think you should be fine.

You say you want this as a long term hold property and you never know what may happen in the next 10-20 years. People may flock to Pueblo West to get out of the city. This duplex may become the best investment ever!

 thank you for your words I appreciate it :)

[Robert-Lee Pass]

Quote from @Max Ferguson:

Hey there, I would be happy to give you my thoughts on your strategies if you want to set up a call. 

the underlined statement is completely incorrect though unless I am misunderstanding:
" Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile "

Pueblo and Pueblo west are the same city. Pueblo West has tried to become a city independent of Pueblo but were unsuccessful. I encourage you to look at crime statistics for the entirety of the city......

With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West. Much better cash flow than the springs but will incur far less appreciation IMO. I am personally considering buying multifamily there in the future as well. 

If anyone knows anything different feel free to chime in if I am missing something. Both have pros and cons and it is great to see the research you are putting into it!

Feel free to reach out whenever. I also have a friend looking to offload a large number of multifamily doors in the Pueblo area, not sure how many he has in Pueblo West though. 

Good luck man, you'll crush it regardless of what you decide!

Hey man , nice to see you so local . I should have an FA number in the next 3 months as well , that'll be cool ill keep your name in mind in case we cross paths haha.
So what would pueblo west be considered? a SubDivision? I do see the mailing addresses sometimes of pueblo west are still pueblo maybe a township or something? but that's too small too .
Your saying Pueblo west is to pueblo as Security-Widefield is to Colorado springs ? or How fountain (where i live now) is to the springs?

I can see what your saying if i compare security and the springs proximity. but again security widefield is very different from other places in the springs no? So i guess what i was trying to say was its the highest median income as well as the safest ZIPCODE in that county? that feels more correct to say. thanks for that

[Max Ferguson]

Quote from @Robert-Lee Pass:

Quote from @Max Ferguson:

Hey there, I would be happy to give you my thoughts on your strategies if you want to set up a call. 

the underlined statement is completely incorrect though unless I am misunderstanding:
" Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile "

Pueblo and Pueblo west are the same city. Pueblo West has tried to become a city independent of Pueblo but were unsuccessful. I encourage you to look at crime statistics for the entirety of the city......

With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West. Much better cash flow than the springs but will incur far less appreciation IMO. I am personally considering buying multifamily there in the future as well. 

If anyone knows anything different feel free to chime in if I am missing something. Both have pros and cons and it is great to see the research you are putting into it!

Feel free to reach out whenever. I also have a friend looking to offload a large number of multifamily doors in the Pueblo area, not sure how many he has in Pueblo West though. 

Good luck man, you'll crush it regardless of what you decide!

Hey man , nice to see you so local . I should have an FA number in the next 3 months as well , that'll be cool ill keep your name in mind in case we cross paths haha.
So what would pueblo west be considered? a SubDivision? I do see the mailing addresses sometimes of pueblo west are still pueblo maybe a township or something? but that's too small too .
Your saying Pueblo west is to pueblo as Security-Widefield is to Colorado springs ? or How fountain (where i live now) is to the springs?

I can see what your saying if i compare security and the springs proximity. but again security widefield is very different from other places in the springs no? So i guess what i was trying to say was its the highest median income as well as the safest ZIPCODE in that county? that feels more correct to say. thanks for that

 On your questions, Kinda! Lol. But yeah it is hard to explain. Do you know where you're hanging your license? I'd love to talk more and hear some updates on what your are thinking investing wise. Give me a ring when you can!

[Adam Christopher Zaleski]

Quote from @Max Ferguson:

Hey there, I would be happy to give you my thoughts on your strategies if you want to set up a call. 

the underlined statement is completely incorrect though unless I am misunderstanding:
" Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile "

Pueblo and Pueblo west are the same city. Pueblo West has tried to become a city independent of Pueblo but were unsuccessful. I encourage you to look at crime statistics for the entirety of the city......

With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West. Much better cash flow than the springs but will incur far less appreciation IMO. I am personally considering buying multifamily there in the future as well. 

If anyone knows anything different feel free to chime in if I am missing something. Both have pros and cons and it is great to see the research you are putting into it!

Feel free to reach out whenever. I also have a friend looking to offload a large number of multifamily doors in the Pueblo area, not sure how many he has in Pueblo West though. 

Good luck man, you'll crush it regardless of what you decide!

I have lived in Pueblo West for the past 5 years. The crime is much lower in Pueblo West and we do not have a homeless problem. We don't have panhandlers in Pueblo West asking for money in grocery store parking lots like the city of Pueblo. If you are looking at crime data for the entire city of Pueblo, it's not going to be representative of Pueblo West. 

District 70 schools in Pueblo West are way better than District 60 in Pueblo. I'm not throwing shade. I don't think anyone that lives in Pueblo County would dispute those claims. My son's elementary school (K-5) won an award for being in the top 7 schools in the state for biggest increase in standardized test scores from fall 2022 to spring 2023. This was for all K-12 schools in the state, including charter schools.  

I bought my house in Pueblo West in November 2019 for 280K. It's now worth about 385K and I didn't do any work or improvements. That's 38% appreciation in 4.3 years. If I had at least a 10 year timeline, I would personally bet on more appreciation for Pueblo West than Colorado Springs. However, Colorado Springs is so large it probably depends on the neighborhood. 

I have rentals in Fort Collins, Fort Myers, FL and Koloa, HI. I am somewhat familiar with living in vacation areas in which housing prices are disconnected with local wages. I personally believe that Pueblo West has long-term potential of housing prices to outpace local wages. I play golf with people at Desert Hawk in Pueblo West that are snowbirds and own multiple homes. The reservoir is a big draw for wealthy families that enjoy boating. Have you seen the new parking lot for boats at the Mariana on the north end? They tripled the size of the original lot. 

Pueblo West has a high quality of life that is difficult to duplicate in other areas. It's still a deal right now, but I don't see that lasting forever. I predict that over the next 10 years Pueblo West will close the gap on pricing to Fort Collins by 50%. In 20 years Pueblo West might match Fort Collins on housing price. You heard it here first! 

[Janet Reynolds]

Another challenge is that in downtown they are building so many new units every corner has a new apartment complex on it which is going to drive down the rents for a while. A pro is that just surrounded by five bases which helps stabilize the economy. 

[Adam Christopher Zaleski]

Here is one more prediction for Pueblo West. At some point a big developer is going to build a brand new "Restaurant Row" in Pueblo West. When that happens that is going to be the signal that appreciation is going to outpace wages. 

[Account Closed]

Quote from @Janet Reynolds:

Another challenge is that in downtown they are building so many new units every corner has a new apartment complex on it which is going to drive down the rents for a while. A pro is that just surrounded by five bases which helps stabilize the economy. 

 Janet, I know there are a lot of new apartment complexes in downtown Colorado Springs. Rents should slip some in that area. 

[Account Closed]

Quote from @Adam Christopher Zaleski:

Here is one more prediction for Pueblo West. At some point a big developer is going to build a brand new "Restaurant Row" in Pueblo West. When that happens that is going to be the signal that appreciation is going to outpace wages. 

 Adam, Thanks for sharing your knowledge of Pueblo West. What do you think about investing in downtown Pueblo by River Walk? The older homes appeal to me as well.

[Adam Christopher Zaleski]

Quote from @Account Closed:

Quote from @Adam Christopher Zaleski:

Here is one more prediction for Pueblo West. At some point a big developer is going to build a brand new "Restaurant Row" in Pueblo West. When that happens that is going to be the signal that appreciation is going to outpace wages. 

 Adam, Thanks for sharing your knowledge of Pueblo West. What do you think about investing in downtown Pueblo by River Walk? The older homes appeal to me as well.

The old Victorian homes near downtown Pueblo and the Aberdeen neighborhood are super charming. When I first moved to the area I fantasized about fixing one up for a primary residence. However, after learning about the education in District 60, we decided against it and bought in Pueblo West. I am not an expert on downtown Pueblo. However, I would say that the downtown and Riverwalk area gets a little bit nicer each year. Have you been to Fuel and Iron Food Hall? The culinary faculty from Pueblo CC created it after they closed the culinary program at the college. Over the past 5 years, I haven't seen any progress on District 60 schools getting any better. I also haven't really seen any progress on reducing crime and or homelessness in the city of Pueblo. Those would be my concerns.  

[Carlos Ptriawan]

Quote from @Robert-Lee Pass:

Hello fellow forum members,

I hope this post finds you all well. I'm within 90-120 days of making my first Investment purchase BUT I'm currently at a crossroads and could use some valuable insights from the experienced members of this community. I'm in the process of deciding where to invest in real estate, and I find myself torn between two options: The Local Metro area of Colorado Springs and the Nearby Rural region of Pueblo West, CO.  (NOTE : 30+ year hold , LTR, Appreciation is the goal cash-flow will become more valuable the older I get (hence the 30 year hold),  Duplex , 3/2/2 1500 per side 2024 build date in Rural Location. 

Each option has its own set of pros and cons, and I'm hoping to gather opinions and advice that could help me make a more informed decision. Here are some key factors that I'm considering:

1. Potential for Appreciation:
   • Local Metro: The urban environment often sees faster appreciation rates due to high demand and constant development.
   • Nearby Rural: While rural areas might not experience rapid appreciation, they can offer steady growth and potentially lower entry points. --> The building construction is brand new vs something at least 25 years old in the city.
     
   • --> Its about a 45 Min drive to reach the Colorado Springs Metro's Most southern city 'fountain', this is where I own my current House Hack/Personal home
2. Rental Income:
   • Local Metro: Rental demand tends to be high in metropolitan areas, attracting a diverse tenant pool.
   • Nearby Rural: I Have great comps as the neighborhood is just being built (6 other new builds with same floor-plan sold in that neighborhood in the last 2-3 years), there is a k-5 school on the same street in the neighborhood of the Rural build. 
3. Long-Term Development:
   • Local Metro: Ongoing development projects can positively impact property values over the long term. but probably wont increase at the same speed % wise as the more rural location.. maybe I'm wrong ill have to research now .. 
   • Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile
4. Personal Preferences:
   • Local Metro: Older build , more expensive (at best its 0-100 cash-flow), higher rents, larger tenant pool
     
   • Nearby Rural: New build , cheaper (Will cash flow +500), rents a little softer but demand for new products and neighborhoods is real, tighter tenant pool.
     

Because this will be my first Multifamily as well as my first time being a landlord , I'm very much in love with the idea of very low CAP Ex Repairs needed in the first 5 years, the tenant quality applying to a new build unit in a new community, Just a much nicer and newer product for the money . I'm 30 years it would be nice to have a property that rents like a 1995 house does today and not a 50-70 year old property like a 1970 would be at year 30. Location of the unit is right up against that Lake Pueblo State park too. I actually frequently go there with the family in the summer.

I would greatly appreciate any experiences, advice, or considerations that could help me weigh these options more effectively. Have you invested in either a Local Metro or a Nearby Rural area? What factors did you find most crucial in making your decision? Any lessons learned or pitfalls to avoid?

Thank you in advance for your input. I'm looking forward to a discussion that will hopefully guide me toward making a well-informed choice.

- Robert-Lee

 forget all of these and just focus on DOM. Other metrics are not useful in my opinion.

[Max Ferguson]

Quote from @Adam Christopher Zaleski:

Quote from @Max Ferguson:

Hey there, I would be happy to give you my thoughts on your strategies if you want to set up a call. 

the underlined statement is completely incorrect though unless I am misunderstanding:
" Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises. The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months. Currently only 30 people per mile "

Pueblo and Pueblo west are the same city. Pueblo West has tried to become a city independent of Pueblo but were unsuccessful. I encourage you to look at crime statistics for the entirety of the city......

With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West. Much better cash flow than the springs but will incur far less appreciation IMO. I am personally considering buying multifamily there in the future as well. 

If anyone knows anything different feel free to chime in if I am missing something. Both have pros and cons and it is great to see the research you are putting into it!

Feel free to reach out whenever. I also have a friend looking to offload a large number of multifamily doors in the Pueblo area, not sure how many he has in Pueblo West though. 

Good luck man, you'll crush it regardless of what you decide!

I have lived in Pueblo West for the past 5 years. The crime is much lower in Pueblo West and we do not have a homeless problem. We don't have panhandlers in Pueblo West asking for money in grocery store parking lots like the city of Pueblo. If you are looking at crime data for the entire city of Pueblo, it's not going to be representative of Pueblo West. 

District 70 schools in Pueblo West are way better than District 60 in Pueblo. I'm not throwing shade. I don't think anyone that lives in Pueblo County would dispute those claims. My son's elementary school (K-5) won an award for being in the top 7 schools in the state for biggest increase in standardized test scores from fall 2022 to spring 2023. This was for all K-12 schools in the state, including charter schools.  

I bought my house in Pueblo West in November 2019 for 280K. It's now worth about 385K and I didn't do any work or improvements. That's 38% appreciation in 4.3 years. If I had at least a 10 year timeline, I would personally bet on more appreciation for Pueblo West than Colorado Springs. However, Colorado Springs is so large it probably depends on the neighborhood. 

I have rentals in Fort Collins, Fort Myers, FL and Koloa, HI. I am somewhat familiar with living in vacation areas in which housing prices are disconnected with local wages. I personally believe that Pueblo West has long-term potential of housing prices to outpace local wages. I play golf with people at Desert Hawk in Pueblo West that are snowbirds and own multiple homes. The reservoir is a big draw for wealthy families that enjoy boating. Have you seen the new parking lot for boats at the Mariana on the north end? They tripled the size of the original lot. 

Pueblo West has a high quality of life that is difficult to duplicate in other areas. It's still a deal right now, but I don't see that lasting forever. I predict that over the next 10 years Pueblo West will close the gap on pricing to Fort Collins by 50%. In 20 years Pueblo West might match Fort Collins on housing price. You heard it here first! 

 All really good points! Definitely a well thought out analysis. Tough to say where everything is going so I appreciate the insight. Do you know about the water tap status? Last I hear there were no more for new builds, is this incorrect? Or is there a yearly allotment for the number of new ones? 

[Account Closed]

Quote from @Adam Christopher Zaleski:

Quote from @Account Closed:

Quote from @Adam Christopher Zaleski:

Here is one more prediction for Pueblo West. At some point a big developer is going to build a brand new "Restaurant Row" in Pueblo West. When that happens that is going to be the signal that appreciation is going to outpace wages. 

 Adam, Thanks for sharing your knowledge of Pueblo West. What do you think about investing in downtown Pueblo by River Walk? The older homes appeal to me as well.

The old Victorian homes near downtown Pueblo and the Aberdeen neighborhood are super charming. When I first moved to the area I fantasized about fixing one up for a primary residence. However, after learning about the education in District 60, we decided against it and bought in Pueblo West. I am not an expert on downtown Pueblo. However, I would say that the downtown and Riverwalk area gets a little bit nicer each year. Have you been to Fuel and Iron Food Hall? The culinary faculty from Pueblo CC created it after they closed the culinary program at the college. Over the past 5 years, I haven't seen any progress on District 60 schools getting any better. I also haven't really seen any progress on reducing crime and or homelessness in the city of Pueblo. Those would be my concerns.  

Thanks so much 

[Brian Bohrer]

Great Strategy @Robert-Lee Pass!

I feel that either location you choose will prove to be beneficial!  My question is have you thought about or are you in the position to move from your current home to purchase this next property (preferably a duplex) as a primary residence? 

The reason I ask this is because the biggest hurdle you are going to face in the current market is falling rents in contrast to raising financing costs.  Pueblo Metro generally is more volatile than the Colorado Springs Metro, meaning that The Springs is more resilient to market fluctuations, and therefore in my opinion would be the smarter bet.  I would also agree that Pueblo West should be a slightly safer bet than Pueblo.

My wife and I buy a primary residence every year and then rent out the previous home instead of selling when we move.  On our most recent purchase, we bought a home with an assumable loan which allowed us to reduce our monthly mortgage payment by over $1,100 because we assumed a loan with a 3.08% rate instead of taking out a new loan (at that time) with a 7.5% rate!  This allows us to not only save thousands a year in monthly payments and increased principal paydown, but will also allow us to rent the home for more than the mortgage payment when we move out in the future!  

This would not be possible if we took out a new loan... Our payment would have been approximately $3,200 (PITI) if we took out a loan at 7.5% and the current rents for a 3bed/2bath/2car garage in the 80916 zip code is about $2,200! The only way we were able to buy a home that would produce cashflow in the future was to buy a home with a loan that was taken out between early 2020 and mid 2022.

I don't know if you are placing a large down payment or paying in cash to allow for a better chance to ensure cashflow, but if you are using financing I would highly recommend buying your next home as a primary with an assumable loan.  You will have to live there for a year, but you could immediately start renting out your current home (hopefully) for a profit!  It is more difficult to find an assumable loan on a 2-4 unit home, but I am sure they are out there!

Once you have your license I can show you a few tricks to finding these homes on the MLS, I would be happy to help!

I wish you the best on your investment and real estate journey!

Take Care,

Brian Bohrer