Is anyone investing in the Denver metro area these days?

[Kevin H.]

The old investment adage of "buy low, sell high" always haunts me during times like these.  We are finding ourselves in a financial position where we'd like to make some investments in the near future, and would like to start generating some partially passive income.  But, we seem to be in a market where everything is currently red-hot (buy high, sell low clearly isn't part of my strategy).  Whether we're talking stocks or real estate, everything is obviously sitting high on the hill at the moment, though forecasting the future is always difficult. 

Are any of you buying in the Denver area right now?  If so, can you share any of your strategies for finding deals on income-generating properties in a low-inventory market where it seems like more homes than not are being sold at a premium during bidding wars?  

I think we'd be most comfortable by finding our first investment property within a relatively easy drive of our current home, but the prospects for pulling this off sure aren't looking great at the moment.  The last thing we'd want to do is buy at a price that's unreasonably high, and find ourselves in a bad position down the road.  

We aren't sitting in a bad financial spot at the moment, but we're scratching our heads about where we should put our money.  We're in our early thirties, we own our primary residence free and clear, we've got no debt, and we're sitting on about $150K in cash.   

Our current home would probably be well-positioned as a rental property, at least in my estimation.  It would likely pull $1,900/month (+/- $100) in rental revenue, but we're currently living here which kind of eliminates that option.  If we could find another house for ourselves, renting this place would be a viable option.  But, finding another place for ourselves is obviously a bit tough right now, too.  

Just thought I'd see what some of your fellow Coloradans are doing right now…  though I'd happily hear anyone's perspective!