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Updated almost 10 years ago, 12/15/2014

User Stats

1,391
Posts
511
Votes
Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
511
Votes |
1,391
Posts

Properties Near Railways

Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
Posted

One of the areas that I am looking into properties has a major benefit coming in the next few years.  The train to downtown will be getting expanded to the area and should make the units in the area much more appealing than they are currently.  My question is, has anyone had problems with rentals too close to the tracks?  Some of the properties I am investigating back up to the tracks.  The properties themselves have great potential (The stations will be built within about a half mile), but I'm not sure if the proximity might be an issue.

  • Dan Mackin
  • 720-466-3378

User Stats

1,391
Posts
511
Votes
Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
511
Votes |
1,391
Posts
Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
Replied

Not sure where the actual post text went, so here it is again:

One of the areas that I am looking into properties has a major benefit coming in the next few years. The train to downtown will be getting expanded to the area and should make the units in the area much more appealing than they are currently. My question is, has anyone had problems with rentals too close to the tracks? Some of the properties I am investigating back up to the tracks. The properties themselves have great potential (The stations will be built within about a half mile), but I'm not sure if the proximity might be an issue.

  • Dan Mackin
  • 720-466-3378

User Stats

87
Posts
24
Votes
Adam Kroll
  • Real Estate Agent
  • Boulder, CO
24
Votes |
87
Posts
Adam Kroll
  • Real Estate Agent
  • Boulder, CO
Replied

Hey @Dan Mackin ,  I had a wonderful experience in Villa Park in Denver.  The entire area is now popping up with new condo developments.  This is unfortunately my only experience with investing near a new train line, so it is only anecdotal.  I have been looking at the new Arvada train station as a potential next spot for my investing activities.  I'd be interested to hear some of your ideas.

-Adam

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User Stats

128
Posts
23
Votes
Mitch H.
  • Investor
  • Denver, CO
23
Votes |
128
Posts
Mitch H.
  • Investor
  • Denver, CO
Replied

I assume this is part of the new commuter rail line being built, and not just commercial lines.  Transit Oriented Developments generally attract a much larger prospective tenant base due to increased mobility. This can allow you to charge higher rents.

User Stats

1,391
Posts
511
Votes
Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
511
Votes |
1,391
Posts
Dan Mackin
Agent
  • Real Estate Agent
  • Erie, CO
Replied

Yes @Mitch H. I am talking about the new lines being built.  Particularly up north in the Northglenn and Thornton area.  The lines will be running right near Colorado which has lots of amenities as well which makes them even more desirable.  As with anything in our area the deals are few so it is an area I'll be watching closely, but for the time being I am focusing outside of the state.

@Adam Kroll

  • Dan Mackin
  • 720-466-3378

User Stats

218
Posts
104
Votes
Royce Talbo
  • Investor
  • Kaneohe, HI
104
Votes |
218
Posts
Royce Talbo
  • Investor
  • Kaneohe, HI
Replied

@Dan Mackin  If you invest parallel to the tracks property value will decrease and rental prices will not be as high.  If you invest in properties perpendicular to the stations those within 1/4 mile will appreciate nicely and get the best rents.  the further out the less you will get but it will still go up.  not sure if i can post links on here, so just try googling something like investing near rail stations.  

User Stats

1,117
Posts
417
Votes
Bryan N.
  • Investor
  • Hampton Roads, VA
417
Votes |
1,117
Posts
Bryan N.
  • Investor
  • Hampton Roads, VA
Replied

Close to the tracks brings a certain kind of renter.  I don't want to deal with that...

User Stats

87
Posts
24
Votes
Adam Kroll
  • Real Estate Agent
  • Boulder, CO
24
Votes |
87
Posts
Adam Kroll
  • Real Estate Agent
  • Boulder, CO
Replied

@Dan Mackin , I just moved back out here in August and finally settled in.  I'm focusing on getting my real estate license to reduce my cost to buy and sell, but keeping Arvada in my periphery.  That downtown area is already breaking ground with expansion and looks very interesting to prospect.  Up by you in Erie, it seems that real estate is climbing pretty well.

-Adam

User Stats

4,406
Posts
2,884
Votes
Bill S.
Pro Member
  • Rental Property Investor
  • Denver, CO
2,884
Votes |
4,406
Posts
Bill S.
Pro Member
  • Rental Property Investor
  • Denver, CO
ModeratorReplied

@Dan Mackin walking distance to the station is the rule for rentals. SFH would be something larger. Personally I think the I225 corridor for SFH will see some some above average appreciation once the rail opens. The So Santa Fe Corridor saw something like 25% price bump in one year when that line opened years ago. The overall RE market was in a similar escalating environment at that time.

As @Royce Talbo said, along the tracks is not so desirable as being a short distance from the station. Most of the Stations areas have been scooped up by developers with deep pockets and accountants with sharp pencils. I think the best play for the small investor would be a fix and short hold that is reasonably (short bike ride) close to a station. 

  • Bill S.
  • User Stats

    1,391
    Posts
    511
    Votes
    Dan Mackin
    Agent
    • Real Estate Agent
    • Erie, CO
    511
    Votes |
    1,391
    Posts
    Dan Mackin
    Agent
    • Real Estate Agent
    • Erie, CO
    Replied

    @Bill S. when you talk about the S Santa Fe area, what was the appreciation in relation to the general market?  If the homes in close proximity were running 25% bumps was it a large difference compared to everything else, or just enough to be noticeable?

    • Dan Mackin
    • 720-466-3378

    User Stats

    4,406
    Posts
    2,884
    Votes
    Bill S.
    Pro Member
    • Rental Property Investor
    • Denver, CO
    2,884
    Votes |
    4,406
    Posts
    Bill S.
    Pro Member
    • Rental Property Investor
    • Denver, CO
    ModeratorReplied

    @Dan Mackin - at that time I think we were in the 5% range for the rest of the market.

  • Bill S.
  • User Stats

    136
    Posts
    65
    Votes
    Theresa W.
    • Rental Property Investor
    • Golden, CO
    65
    Votes |
    136
    Posts
    Theresa W.
    • Rental Property Investor
    • Golden, CO
    Replied

    I also like the areas heading downtown from the Fastracks lines, but have shied away from any property that is within a 1/2 block of the actual rail.  If you can hear a train every 8 minutes or some small increment like that, I think there's a negative impact to quality of life and to a potential exit strategy of selling to another homebuyer.  On the other hand, if you're targeting a short hold to sell out to a developer who's gong to scrape the entire block for a TOD, that could be a legit strategy as well.