First rental property in Colorado Springs and ability to rent

[Jeremy M.]

Hi BiggerPocket community!

First of all thanks for reading. I’m new to this forum and as a first-time investor, wannabe Coloradoan, I’d love to hear your feedback about my project in Colorado Springs.

About myself: I’m a single young professional working in the tech industry downtown Denver. I’d like to buy my first investment property in Colorado with a budget max of $400K (financed via loan). I’m currently renting close to work and very happy about it so buying a primary residence is not a priority plus price point in Denver is too high given my budget.

For that reason, I’ve been exploring the different options including Denver metro, Longmont, Boulder, Fort Collins and finally Colorado Springs which seems to be a great place to start investing locally. I could buy a single family home for 280K in a not-so-good area but I’m looking at something more premium like N/W, WES, BRI and District 20. Recent 3/4br single family homes sell for 330K with potential rent in the $1900-2300 range for traditional long term rental, and even more for short term rentals that I might consider in the future. My only fear is vacancy. With interest rates going down and an affordable housing market in the Springs, I wonder if I will actually be able to rent the place out and pay off my mortgage.

Coming from a blue-collar family I have learned to invest very carefully. It is okay if this investment doesn’t bring 10% year after year, as long as it’s safe, generates some cash flows and eventually appreciates over time. If this one works, I will be more confident with the next one and will probably focus on something that can generate more cash flows (duplex).

If you have any advice/suggestions about my situation please let me know, I really appreciate your help.