Denver Rental Investors, what are your rules for buying?

[David Corboy]

I'm curious to see how other people analyze and eventually decide on purchasing rental properties for the long term, in a hot market like Denver. Thanks! 

[Bill S.]

@David Corboy it has to pay for itself. Meaning at the end of the year I don't want an alligator eating my cash flow and I don't want a wad of cash (really any cash) tied up in it so the loan payment is low enough it is covered by the rents. IMO deals like this are few and far between. I am ok with that because I do own property so it's not like I am completely missing out. 

There are other reasons that other investors have for buying property. For example, if they don't buy they have to pay a bunch of capital gains because they sold a property. Some are content with letting money sit in a property so that the leverage portion can appreciate. Some need a place to live and it's better to own than rent and the more you can own and still pay for the better. Investment criteria varies with the person and the point where they are in time. You have to figure out what yours is coupled with the market we are in and move forward.