The Top 3 reasons why I invest in Westminster,CO...

[Kenny Smith]

Hey BP Community!

When it comes to where to investing in Denver, it can be quite overwhelming figuring out where it makes sense to make that big investment. There are several factors to consider when thinking about what neighborhoods to invest in..

1. Desirability - depending on your strategy, finding a location in which your guests or tenants will find desirable is critical to limit vacancy and maximize revenue.

2. Price - an obvious one, but where does your money go the farthest without compromising potential rental income.

3. Natural Appreciation - this is a big one. Figuring out where the next up and coming neighborhood is, before everyone else finds out about it, will put you on the fast track to wealth building.

Southern Westminster checks all of these boxes. This centrally located neighborhood offers easy access to major highways such as 36, 25, 76, 70, is 10 minutes from downtown, and very accessible to the mountains is perfect for someone wanting to see all Denver has to offer.

With entry level prices of $450k-$550k for a single family home makes this area a great starting point for someone with a limited budget.

Lastly, I believe natural appreciation is coming to this market in a big way over the next several years. Although these neighborhoods may not be the best looking currently, 5-10 years from now, I believe they will take on a very different look. With the neighborhoods just south of here beginning to be unaffordable (Highlands, Sloans lake, Berkeley) for your average home buyer, the bubble must expand outward. New SFH's/Condos/Townhomes are already beginning to take over in this area, and is just a matter of time until southern Westminster follows.

Thanks for reading!

[Kenny Smith]

@Dylan Speer

Great question!  So, if you look at Denver as a whole, and where interest rates are at right now, doing any type of long term rental is not going to cash flow.  It's just not the market we're in right now.

If you want to make a property cash flow, you have to get creative. My speciality, and what I help my clients with is house hacking..specifically single-family non-conforming duplex conversions. In a nutshell, find a single family home in which it has the capability to essentially have completely separate units and you live in one portion, while you rent out the other. We like to maximize our revenue so we run that rental unit as an STR. When you move out of the property to go do it again, the unit you were living in can now become another rental. We do a mixture between STR and MTR with those homes, and yes, they cash flow fairly well for us.

It is all about being as creative as you can right now.  So to answer your question, cash flow and appreciation.  It's a win-win.

Have you been looking in the area as well?