Anyone own/invest in multifamily in Fort Collins, CO?

Question

Hi everyone, I'm located in Portland, OR but am looking to invest in the Colorado area, specifically Fort Collins and surrounding areas including Greeley. I'm looking to make a trip out soon and would love to connect with any investors or owners.

Matt M. · Answer

Have you smelled Greeley???

Ben Rhodin · Answer

Hey @Dustin Le! Welcome to the Colorado market, coming from Oregon, and the west coast, you will find a lot of similarities to your neck of the woods out here. Let me ask you first, what draws you to specifically NoCo, Fort Collins, and Greeley? There is nothing wrong with those markets, but if you are looking at the Colorado market in general you may want to toss a wider net and come down towards the Denver Metro as well. Now without much info in your post regarding your goals, or investment criteria, it is hard to paint a full picture for you, but in short, both Greeley and Fort Collins are great markets but depends on what you are looking for. They are both smaller markets than the Denver Metro, which comes with pros and cons. I do quite a bit of business up in NoCo and the Denver metro, and typically people look towards NoCo if they are priced out of Denver Metro, the same goes for Colorado Springs. They are smaller markets with a less diverse employment market. Personally, I am looking in Greeley, and have had 3-4 investors close up there in recent months. There are quite a few larger multifamilies up there but unless you can be close to downtown or the university you'll be looking at more C-class buildings and tenants. Cash flow and COC can all be adjusted depending on how much you are able to put down, or if you look at a value add. Cash flow can be created depending on your personal investing strategy. Yes, Colorado has been more on the appreciation side, but if you are creative then cash flow can be made. I have clients that are creating 10%+ COC returns on properties here in Colorado.Personally, the investors that do the best in these markets and Colorado alone are the ones that do a hybrid model on these properties. Part LTRs for the stability and recurring income, and then part MTR/STR for the increased cash flow. MTRs are very solid in today's market, and Greeley does also have a decent-sized medical campus and a highly regarded nursing school, and very little competition in the MTR space. Let me know if you want to sit down and chat some more when you get into town, personally I've moved all my out-of-state investments back into Colorado.

Dustin Le · Answer

@Anthony Taylor I would love that. I'll send over a request and we can chat there

Anthony Taylor · Answer

Dustin, I'm a Realtor here in the Fort Collins and Greeley area. I actually currently invest out of state but for the last couple years analyze countless deals to see if I can make a deal pencil out here in CO. I have worked with a number of investors that have purchased in the area as well but most often they are interested in the appreciation this market has brought historically as opposed to the cash flow. That said, I have seen a few deals come up in Greeley recently that did make some cash flow and would likely qualify for most DSCR loan products and make a little cash flow each month. Would be happy to meet up and share my experience of the market when you come to town!

Brian Wilson · Answer

No sir. But I would assume CAP rates would equal to or lower. I still like the idea of investing in Colorado for larger multifamily. Fort Collins is also a different market than down here near Denver. So it may make sense. If I had to ball park it though I wouldn't be surprised at 5-6 Caps being your typical. It's just such an expensive market.

Shoot me a request!

Dustin Le · Answer

appreciate your reply @Brian Wilson. Did you look into commercial multifamily? I'm looking at 5-20 unit properties. I'd love to connect regardless

Brian Wilson · Answer

@Dustin Le I moved to Colorado late last year. That being said I don't invest in the local market. However, since I was prospecting it for STR's I found a few things and spoke with other LTR investors in the area. The most profitable investments on LTR that I have seen from a purely CoC perspective have been SFH rent by the room situations (for LTR). Everything in Colorado is fairly expensive, while rents aren't as high as I'd like them to be. I think most of what I was looking at was penciling out at a 4-6% CoC ROI once stabilized. Another investor did splits. Would rent the upper half of a home for STR and the basement/ADU as an LTR. But when you start looking into STR's in Colorado you need to be aware of the regulations as many area's do not allow for non OOC STR"s.

Anyone own/invest in multifamily in Fort Collins, CO?

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