Multifamily investing in Colorado Springs

[Daniel Wolcott]

How are people finding multi-family deals in Colorado Springs. I know it may not be the best method but I have been using a realtor and the MLS and everything I analyze seems extremely overpriced. Very low cap-rates (<5%)and NOI, High GRM, nothing gets close to the 1% rule (maybe .5%) and some are running at a cash negative yet they seem to be flying off the market. Am I missing something or is the new norm. Are people just buying hoping they can juristically increase rents or hoping that the market will continue to go up in this town? Any insight or advice is greatly appreciated.

[Kyle Doney]

People are paying stupid prices right now.. Maybe they are using cash to purchase or large down payments to cash flow. The multis selling in Denver and the Springs make little sense. 

I owned two 4 plexes there and in about a year we gained 6 figures in appreciation (some was forced through reposition) and cashed out. 

If you want off market, pull lists of multi owners in Springs and mail or cold call. Thats your best bet to finding something that will work numbers wise.