Colorado Markets (Colorado Springs, Denver, Boulder, Greely, Summit County, etc)

[Jeff L.]

Howdy BP -

I'm a new investor looking to get into my first buy & hold property in the next six months. I am working to select the "best" market within a few hours drive of Boulder CO. I've had more luck meeting the 1% & 50% rules in areas like Greely, Colorado Springs, Aurora, etc. But these areas are much less attractive as appreciation prospects.

I've been graphing out Zillow market data by zip code(http://www.zillow.com/research/data/); specifically Price to Rent ratios. I am trying to strike a balance between a market that can deliver month-to-month cashflow (after debt service) while enjoying some level of appreciation. Historically it looks like appreciation in the Colorado Springs market has been flat, while most Northern Colorado markets have enjoyed ~6% growth. I'm  picking up on an inverse relationship between rent/price ratios that would beet the 1%-2% rules, and a markets likelihood for growth. It seems like the higher end markets that show resilient growth have lower rent/price ratios. Thus it is more difficult to find cash flowing properties.

Since I am a new investor and want to build a conservative foundation, cash flow is my utmost priority. Ideally, I would like to net $100 - $200 per door. With Boulder's recent approval to expand the Google campus, this would be an ideal market for appreciation, but it is tough from a cash flow perspective.

Long story short, I am looking for some advice on a balanced market in CO that offers both attractive cash flow and shows historic appreciation. Thank you in advance for your help!

My very best,

Jeff