Realtor recommendations for Colorado Springs / Pueblo area?

Question

Hi All -

First time poster here but wanted to perhaps tap the collective wisdom of this group. I've got one investment property in CA, I'm looking to start expanding that in a more affordable market by doing my first out-of-state investment. Colorado Springs is the main next area that I have comfort in (family on-the-ground, etc), I know the market there is a bit hot so it might be a challenge to find something that cashflows, but any chance anyone has a good recommendation for a realtor in that area who is used to helping investors look and can help work with a first time out-of-state investor (and hold their hand a bit)?

Any steers would be greatly appreciated!

Colin Smith · Answer

Thank you for the recommendation @Daniel Haberkost!

I have helped dozens of investors from CA specifically but also around the globe invest in Colorado Springs properties. It can be a bit of waiting game waiting for the right properties to come on the market as there have only a been a few worth pursuing in the last two months. I believe more will be more coming on the market as we progress in the year which traditionally happens.

Multi-families here offer more opportunity than single families in terms of cash flow. Not usually right out the gate but there can be opportunity to find the cash flow with some cosmetic remodels, lease renewals, changing lease terms, etc. Single families are best to buy vacant but also means you're buying with market value rent right out the gate. Yes, as of today (1/22/21) the market is very competitive for single families leaving them cash flow negative with no opportunity to push the numbers up except to allow appreciation to do its thing. That being said, I still have investors purchasing single families as they are easier to get into, can be more consistent in their maintenance schedules, and most of all are playing the appreciation game. I know most of BP will say not to play that game but the investors who have in Colorado Springs are not complaining by any stretch of the imagination.

In El Paso County, Median Sale Prices of Single Families are up 13.85% in 2020 over 2019, and 6.21% from 2018. Both very good years in my opinion from an investment perspective as these are appreciation numbers only. For multi-families, the numbers are 2.61% for 2020 and 7.61% in 2019. Multi-families saw bigger numbers in previous years such as 2018 was 26.32%, 2017 was 17.07%, and 2016 was 12.19%. My gut feeling for 2021 is going to be another big year for both categories as our inventory is low and our the rate at which we were purchasing in 2020 was faster than what new listing coming on the market. Even if our listing investors doubled or tripled over night our we would still have a supply shortage which makes me believe we will continue to see prices climb.

I will also follow up in a PM to you @Lex Douvas.

Daniel Haberkost · Answer

Hi Lex, I'd reach out to @Colin Smith - he helped me when I first moved to The Springs and has continued to do so since. He knows the market extremely well and is an investor too.

Dan

Raylene Luckett Froman · Answer

Lex, looks like our Pueblo market secret is out.  It is a great community for investing, Colorado State University - Pueblo, Pueblo Community College, the Riverwalk, the Reservoir, the Convention Center and Arts and Conference Center.  I am happy to talk to investors about the Pueblo market.

James Carlson · Answer

@Lex Douvas

Love the idea of investing in Colorado Springs. We live here, invest here, and work with buyers and investors, and I see a lot of upside still in the next few years. BUT! Make sure you're coming in with the right expectations. Colorado Springs like Denver, where we also work, just doesn't cash flow unless you get creative. Buy a home that needs love and invest some work and money in. (But then your cash-on-cash return is not as great.) You can also try the rent-by-the-room model (like house-hacking but without you living there). You can cash flow that way, too, but you have higher demands on your time and energy, and it's much tougher to scale that model.

Really, you're buying for appreciation. I know that's a four-letter word here on Bigger Pockets, but I don't think it should be. All indications are that prices are going to go through the roof again in 2021 in both Denver and Colorado Springs. That dynamic is driven by high demand (fueled by low interest rates and an influx of people to the area) and low supply.

I'm not saying be crazy. You still want to buy something where the numbers look good. Try to break even, install good tenants, and let them pay down your mortgage while you watch this market rise. After a few years, rents might even rise enough so that you're cash-flowing well.

Grace Wang · Answer

@Nick Monge is on the FI team and he works with quite a few clients specializing in those areas! It might be worth setting up a call with him to see what's up

-Grace

The FI Team

Nathan R. Cowger · Answer

Pueblo is a very different market than COS.  I would recommend you find a realtor there that is there and a part of the culture.  I have been using Harland Cason, he is fantastic and understands investors too.

Harland Cason

Web
 www.hellosoutherncolorado.com

Realtor recommendations for Colorado Springs / Pueblo area?

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