Colorado Springs, Fountain & Pueblo Markets?

Question

Hello Colorado Springs, Fountain & Pueblo investors!

I am currently living in Germany, but looking to move back to the US in one to two years. I have the option of returning to the Colorado Springs area when it is time to move back.  I currently have a rental in Fountain that is cash flowing $300 month for me.  I also have a great property manager, which makes that area all the more appealing for me to continue investing in.  Admittedly though, I am out of touch with the market there.  I am looking at buy and holds currently, and I would like to start flipping once I am back full time.

How are things looking these days?

Matt R. · Answer

It interesting when you compare Pueblo to other steel towns gone bust. Pueblo peeps are remarkable. There is not another steel/coal town that has survived poulation declines. Pueblo has survived and has thrived in comparison with no overall population decline. I can show dozens and dozens of US cities that can't say the same.

These dudes work harder than most. I would not under estimate Pueblo. They have proven they can and will adjust to whatever comes there way. Many national major services companies know this and have located service bureaus in Pueblo. It's not a glamorous town but those men and women work hard and the steel company is the most profitable steel company on the planet. Were talking the entire rust belt, the entire country of China.... Pueblo still makes the best steel in the world. Believe it or not Pueblo workers are famously well respected in those circles.

When the interstate was originally planned they went right threw the factories as to show off the industrial might. What is great about Pueblo gets hidden to the casual observer.

There are 6 states that have a consistant real estate appreciation as compared to the other 44 states.

California, Oregon, Washington, New York, Illinois and Colorado. You take out Pueblo like the other steel towns that went south and that probably changes.

Thanks again,

Matt

Kerry Smith · Answer

@Julie McElroy Thanks for saying hi Julie!  As I was leaving Fountain in 2006, Pueblo was starting to pick up.  I was working at Ft. Carson at the time, and felt the drive to Pueblo was a little long.  However, this time around I would not mind living there at all.  I can see the Springs being more competitive.  As I was Googling around a noticed a lot of the big name realtors that were around in 2006 are gone now.  I guess the bubble bursting took the wind out of their sails.

Question Julie - Are you managing your own places or do you have a property management company?

We definitely have to keep in touch.  I would love to check out Pueblo more!

Matt R. · Answer

Good point Robert. I think there are a few dozen steel towns that would happily trade for Pueblos stagnation:) Nearly all of the steel towns lost 60%+ of their population as compared to Pueblos 0% population decline. I am comparing steel town vs steel towns. That is what is remarkable to me. Can Colorado still thrive without a steel town? Sure.
Thanks,
Matt

Julie Sisnroy · Answer

I'm glad you all feel that way - less competition for me. ;) Darren, if you live there, you will get a better feel for the area. I am not sure if others here have actually spent time there, but before I spent any time there, I had similar thoughts. - I am up there at least once a week, since my bf lives there, and I have found some good pockets. But, yes, small town and certainly not glamourous. I guess it depends on how much you care about that.

Julie Sisnroy · Answer

Hi, I live in the Springs and one property here and one in Pueblo and am currently looking to move to Fountain. The market in the Springs is difficult and more competitive, I think.  It depends on how much you want to spend. Colorado Springs is not as expensive as Denver, but Fountain is cheaper, and Pueblo even cheaper.  I don't know Fountain super well, but it is not very large.  I know a lot of the areas in Pueblo, but they vary sometimes by block.  Good luck!!

Darren Smith · Answer

Hello All,
My wife and I will be new Pueblo residents this June.  I currently wholesale in York, Pa, and am very interested in learning as much as I can about the Pueblo market.  My long term goal is rentals, but I'm a little to transient at the moment to invest in anything long term.  Does anyone know of any local REIA groups in the area.  Google didn't show me anything.
	
I've spent a few days driving around Pueblo.  Correct me if I'm wrong, but it seems like it has very segmented areas.  The middle-east, south-east, and west and south of Parkview Hospital have some pretty rough neighborhoods.  Also there’s a few rough spots interspersed throughout the central city.  But you can go two blocks over and there’s $200,000 and $300,000 houses.  Here in York there are very cheap houses to buy, but there's no way I'd want to deal with the tenants.  Is there a similar problem with the lower-income tenants in Pueblo, or there less of a safety issue?

Thanks in advance for any information.  Look forward to meeting some of you when I get out that way.

Kerry Smith · Answer

Matt R. Hi Matt!  I have a 3/2.5 w/2car garage.  It's right at 1600sq ft, on a smaller lot.  The house was built in 2004.  It rents for $1300 a month currently.

Darren Smith · Answer

Wow I've been away for a few days and you all have posted some valuable insights.  Sounds like Pueblo has a lot of potential, but there's also a lot of ways to go wrong.  Hard working people definitely make a big difference is keeping a town strong.  I'd heard Pueblo was in a better water position than most Colorado towns from their reserves in the mountains and their lake.  Never heard about tainted water.  Thanks for the info.  I'll be cautious.

Steven J. · Answer

Caution about Pueblo - make sure you do your due diligence on your water table. I recall there is any area in Pueblo where the water is tainted with something, or maybe its radon, etc. Its one of those things that can kill a good deal because the average consumer sometimes will have just enough information to make a stupid decision.

Robert Blake · Answer

Given a stagnant population and its relatively small size compared to the rest of the Front Range, much less the state overall, I think you're being rather generous.

Colorado Springs, Fountain & Pueblo Markets?

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