Denver vs Colorado Springs vs Pueblo Investing

[Chris Lopez]

People often ask us about investing in Colorado Springs and Pueblo since the average property price is lower there than in Denver. So, @Charles Roberts and I decided to put together an analysis of properties across the three different markets. 

We analyzed and toured nine properties:

• Pueblo - four properties w/ cap rates between 6.0% to 8.4%
• Colorado Springs - three properties w/ cap rates between 6.4% to 7.6%
• Denver - two properties w/ cap rates between 6.7% to 7.3% (potential ~8.5% cap with a value-add play.)

You have lots of options for getting the details:

• Search for "Denver Real Estate Investing" in your podcasting app.
• Listen on the website at DenverInvestmentRealEstate.com/Podcast55
• Listen on iTunes / Apple's Podcasting App
• We posted all the numbers and data sheets on our blog.
• Watch the webinar recording on YouTube.

Questions? Want to buy property? Then reach out to us!

[Rodolfo Canon]

@Aaron Moore,

I have been working with investors in the Denver market for the last six years. We have watched the value of rental units steadily increase. As the cost of single family homes grows faster than the income of the population, rental property investments are more attractive. House Bill 1279, approved last year by the legislature, stipulates that legal action against a builder for alleged construction flaws can only proceed when more than half of all homeowners in a condominium complex agree to it. But the Homebuilders Association says that two issues still must be addressed: binding arbitration for dispute resolution, and and the high cost of insurance for builders. Even if these issues are addresses we still have the high cost of construction and the labor shortage. 10-years ago, condos represented 20% of housing starts. Today they represent 3%. It will take a long time to recover the deficit in condo construction. 

Our investors in apartments are not worried about the impact of apartment conversion to condos, or a sudden rush of condo development. If a large swath of apartments were converted to condos, what would happen to rents? All apartment investors would be happy.

A long term view driven by smart investment decisions in good properties in proper locations and efficient and fair asset management makes for an excellent long-term future.