Buying/Selling Real Estate in Loveland and Fort Collins Colorado

[Connor Maloney]

Hey guys,

My brother lives in Fort Collins, CO.  He is moving to Loveland, CO for his job.  He currently owns his house (5 BR, 3 BA) in Fort Collins that he has about $100,000 of equity in from his payments and appreciation over the past 5 years.  

He wants a rental, but owning a rental in Loveland makes more sense to him because he will be living there.  However, he is not sure if it is a good idea to sell his house in Fort Collins to buy a nice house in Loveland and another house to rent out in Loveland.  

Does anybody have any advice for my brother??

I do not know how good the rental markets are in Loveland or Fort Collins, but I do know that property values are very high in Colorado right now.  So I didn't think it would be a good idea for him to sell right now.

To me, it makes more sense for him to rent out his house in Fort Collins (not sure how well a 5 BR, 3 BA on the edge of town will rent) and then take out a home equity loan to use as a down payment on a new house in Loveland.  Then, when prices come down, buy another rental in Loveland.

Thanks for any suggestions!