Colorado Real Estate Investor

[Shane Malloy]

I am a new real estate investor from Colorado.  I am looking for my first investment opportunity for a rental income property.  I have been doing a lot of analysis on properties in Colorado and have been having a really difficult time finding any opportunities that would be cash flow positive.  I am new to this so I'm sure there are opportunities but I may just not be finding them.  For the people investing in the Colorado market, is my assessment off?  

Also, how risky is it to start with long-distance investing for rental property investments?  I am finding a lot of other markets were the economics and cash flow make much more sense.

Thanks,
Shane

[Phillip Bicker]

@Shane Malloy

Hello to my fellow Castle Rock BP member! Your findings may or may not be very far off. If you are looking at active MLS deals in the Denver Metro it is going to be tough to find cash flow positive properties, especially with detached homes. The ones that hit the MLS that are cash flow properties are sold very quickly (0-3 days). I have found several cash flow positive townhomes in Denver (around $100- $200/month cash flow after debt service, taxes, insurance, capex reserve, maintenance, and a small vacancy). That said, you would have to be ready to move quick and have an active agent that can quickly submit competitiveness offers.

Before looking out of state, I would consider looking South instead of north. There are plenty of cash flow positive properties in Colorado Springs, especially if you consider multi-units (although again, the best deals go fast and you have to be ready to jump on them). You are in a great position to do this living directly between Denver and COS.

Quick FYI the Denver Metro and Colorado Springs markets are served by different MLS's - if you use an agent to help you find a cash flow positive property make sure they belong to both for you to compare the two markets.