Pueblo the Detroit of Colorado??

[Paige Kelsey]

I live in Colorado Springs and often struggle finding deals that are good enough to jump on. It is certainly not that they are not out there just not fitting the 2% 50% etc. Sooo, I started to look at Pueblo, holy cow- deal after deal after deal where the numbers work even with a company managing the rentals. Please note that I am running the number through the analysis calculators and my goal is buy and holds on multi. One example but there are probably 10 just like it........a 4 plex grossing 1800 for 90k. Cash on cash return is 25% if I use the Brrrrr method Whaaatttt?? Nope, not gonna get that in the Springs. So, I keep hearing about crime and meth and and and. The fact is that when I run things through the calculators I put 0 for appreciation. Do I need to go back through all the pod casts and see exactly why Brandon says no to Detroit? Hellllpppp what am I missing before I pull the trigger here??

[Colm McCormack]

Thanks @Sam Dangremond and @Nancy Allen. I appreciate the compliment.

Yup, I  live in Colorado Springs and have been flipping in Pueblo since 2006. 

It's very easy to loose money in Pueblo because the ARVs tend to be low. It's dangerous to look at a deal from only a percentage view alone and it is wise to also consider your straight flat rate dollar return.

About flips, often outside investors come to Pueblo and rehab based on what the market/buyer they left (NY, CA, TX, Colo Spgs, Denver, etc) would want a rehab to look like and not what a Pueblo buyer will expect. Don't over fix it!

About rentals, it comes down to managing the residents with firm and clear expectations, which begin with making it hard to get into a place upfront. We reject several applicants before "allowing" someone to live in one of our units. Having done this, our evictions are low and renewals high. Because the buy prices are low & rents are strong in Pueblo the ROI is high. Wonderful rental market!

Shoot me an email if you would like a 1- 2 hour tour of Pueblo neighborhoods and look at past deals we have done. We also have plenty of whole sale deals to flip to you.