Multifamily In Colorado

[Brandon Velikaneye]

The prices I'm seeing for multifamily units in Colorado are way too high. Or am I just looking in all the wrong spots? I have a Realtor that has me on the mls. Along with my self searching loopnet every hour of the day. Where else could I look for something that at least brings in decent cash flow after putting %20 down?

[Bill S.]

@Brandon Velikaneye Denver is one of the hottest markets in the Nation. So the first question is what are you comparing it to? When you are seeing 9% per year annual price increase you don't really need much cash flow to have good returns. I know appreciation is not a sure thing but that is how our market is priced right now. If you are not comfortable with that you need to find properties that are not heavily marketed or look in a market that does not have the appreciation we have had. At any rate overall due to the risk of the stock market and the availability of cheap money real estate in general and compared to historic norms is very over priced. Metrics are based on averages over time. In good times (high prices) are difficult to meet and in bad times (low prices) are met by even over priced properties that don't sell. You just have to figure out what you are willing to stomach and then go get it done.