How to invest in Colorado amidst unprecedented price action?

[Jason Breton]

Colorado home prices are up ~14% year over year including some of the hottest zip codes in the nation. Is this giving investors pause? Where are investors finding deals?

I currently have one house hack duplex in Denver and looking to put some cash to work in single or multi family units. Also, looking to deepen my network in the area and nationally, so love to connect with any like minded investors.

[Ben Rhodin]

Hey @Jason Breton! This is a common question especially this year... But its important to understand how real estate works over the long term. Unless you plan on holding a property for the short term, real estate will increase in value over the long term. So 15 years down the road when your property is worth $100k more you aren't going to be worried about the $20k extra that you paid upon purchase. However, as prices do increase and rents aren't keeping up at the same pace, creativity is key here in Denver. It is tough to make the single family properties cashflow, and small multi's will cashflow but are in a higher price point, and can require a lot of deferred maintenance. Finding creative ways of renting SFRs is a great way to achieve cashflow and take advantage of the strong appreciation here in Denver! For example, just taking a SFR and turning the basement into a separate area and renting it separately. This can achieve over $1k in cashflow even with the inflated prices. Their are other strategies that work, like STR, medium term furnished rentals, or rent by the room strategies, and these will all keep you out of having to pay the hefty price tags of small multi family here in Denver.

Happy to connect, and chat more but we still have no problem finding our clients strong properties on the MLS!