Colorado

[Suraj Nagrani]

Hello everyone!

I'm still in the research stage of my first investment in the U.S. I'm currently researching the Colorado market. It is appealing to me because it seems like a great place to visit a few times a year and also to bring the family on a holiday every year. I am based in Hong Kong and Guangzhou where the air pollution is bad. It would be nice to get my children into some fresh air for a healthy break. And it would only be possible if I have a small business to run on the side. The business would have to generate a decent return for me to make it work and I plan on adding to it every year. To start I would like to target a multifamily property in a good but affordable area with growth that would generate rental income. My budget is about $500,000 cash. Does anyone have any ideas and/or suggestions. Which cities/towns to look at? Why or Colorado is or is not a good state to invest in? Is this dream possible or should I be looking at other states, and if so, which other states?? Thank you for your time. 

[Mike D'Arrigo]

@Suraj Nagrani 

"It is appealing to me because it seems like a great place to visit a few times a year and also to bring the family on a holiday every year."

This is one of the worst mistakes buy and hold investors make. Being a good place to visit or having family/friends in the area are not reasons to invest somewhere. Nowhere does this take in to consideration the economic and demographic factors of the market and ROI you can get. You said you're researching the Colorado market however, CO is a state made up of several markets. If you're looking at Denver, the economy is strong there however, as @Frankie Woods points out, it is very expensive and does not cash flow. Frankie mentioned both Indianapolis and Kansas City which are strong cash flow markets. They might not be places you want to take the family for holiday but that's not what investing is about. It's about profit and cash flow.

I wrote a report on how to select a market and how to invest out of state. I'd be happy to share it with you if you want.

Mike