Investing in Denver from Out of State

[Ken Hart]

I’m interested in investing in Denver, but because I’m out of state, I won’t be able to do a lot of hands-on management.

If I were looking for a good area for a first investment, are there any particular neighborhoods you’d recommend?

I find myself gravitating toward Cap Hill but want to expand my search.

I’m looking at quadplexes to 12 unit complexes.

[Steve K.]

Hi Ken, 

First of all welcome to BP, I see this is your first post. Lots of great people on here willing to help. There are a few good property management companies I know if in Denver, I'm happy to share (sending you connection request). 

Regarding which neighborhoods to recommend, that depends on your goals. If you're looking for high cap rate, you'll have to look on the outskirts of town. But since you mentioned Cap Hill, perhaps a high cap rate is not what you're looking for? MF properties in Cap Hill are generally low caps. If you're looking for appreciation and you have a lot of starting capital, Cap Hill is a safe bet, but you'll tie up a lot of cash for low cash flow. If you're looking for a healthier blend of cash flow and appreciation, I'd look elsewhere in the city such as the areas on the perimeter of the already hot areas.