What’s your UNFILTERED experience investing in Pueblo, CO?

Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes

Happy New Year BP fam! I have an important question for the investors investing in Pueblo, CO.

What has been your experience investin in Pueblo but also finding tenants for your properties? Share the good,bad, and the ugly. And what you would have done different (if applicable).

I’m based out of Colorado Springs, and with the cushion of savings that I have, the Pueblo market is priced to where my dollar could go far. Yet, I’m open to any feedback as well.

Thank you!

6 Reply

81 views

Most Popular Reply

Jenny Bayless

Real Estate Agent · Colorado Springs, CO · Member since 2016 · 109 posts · 96 votes

@Tiffany Onwudinanti I am primarily a Colorado Springs investor, but purchased my first buy and hold in Pueblo early 2022 (so going on almost a year of ownership). It has been a great addition to my portfolio- 1980s build and it is near the CSU Pueblo campus. I have a good PM, good tenants, and quite honestly, I forget I own it sometimes :). I think the city has a lot going for it economically, but it is important to be picky as to which areas you decide to buy in. I will DM you some of the economic research we've worked on with Pueblo specifically.

2 Reply

See this reply in the discussion

19 Replies

Jump to latestLatest

Sort by

Jeremy Gaal
Rental Property Investor · Colorado Spgs, CO · Member since 2020 · 91 posts · 61 votes
3y
Quote from @Tiffany Onwudinanti:

Happy New Year BP fam! I have an important question for the investors investing in Pueblo, CO.

What has been your experience investin in Pueblo but also finding tenants for your properties? Share the good,bad, and the ugly. And what you would have done different (if applicable).

I’m based out of Colorado Springs, and with the cushion of savings that I have, the Pueblo market is priced to where my dollar could go far. Yet, I’m open to any feedback as well.

Thank you!

In the Springs as well, have been looking at Pueblo for a bit as well... I think it just really depends on the area. Certain parts of Pueblo an vary street to street from what I've veen told. With that said this may be the year I step out of the Springs to invest
1 Reply
Tiffany Onwudinanti
OP
Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes
3y
Quote from @Jeremy Gaal:

Quote from @Tiffany Onwudinanti:

Happy New Year BP fam! I have an important question for the investors investing in Pueblo, CO.

What has been your experience investin in Pueblo but also finding tenants for your properties? Share the good,bad, and the ugly. And what you would have done different (if applicable).

I’m based out of Colorado Springs, and with the cushion of savings that I have, the Pueblo market is priced to where my dollar could go far. Yet, I’m open to any feedback as well.

Thank you!

In the Springs as well, have been looking at Pueblo for a bit as well... I think it just really depends on the area. Certain parts of Pueblo a vary street to street from what I've veen told. With that said this may be the year I step out of the Springs to invest
I’m with you Jeremy! Especially with how powerful BRRRR could be if used right in Pueblo. Do you have any contacts you recommend in Pueblo?
0 Reply
Brett Deas
CO · Member since 2022 · 588 posts · 426 votes
3y
I have seen some investors do well in west pueblo, with all of the new development they have ridden the appreciation wave well and cashflow well too.
0 Reply
Tiffany Onwudinanti
OP
Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes
3y
Quote from @Brett Deas:

I have seen some investors do well in west pueblo, with all of the new development they have ridden the appreciation wave well and cashflow well too.

I’ve kept my eye out on Pueblo West, but the prices are similar to Colorado Springs. Sticking with Pueblo (the city) for now..
0 Reply
Jordan Malara
Real Estate Agent · Colorado Springs, CO · Member since 2019 · 124 posts · 127 votes
3y
@Tiffany Onwudinanti As Jeremy mentioned, it purely just depends on the area in Pueblo. There is opportunity for a good investment in the area, but it's important to avoid certain areas in Pueblo such as the Superfund. A property strategically purchased in a growing or developing area of Pueblo can make a great long term investment!
As far as tenancy, the quality of tenants can be slightly lower overall. This is mainly based around the industries that drive the Pueblo market. You can overcome this risk by collecting larger security deposits, keeping more in reserves, and thoroughly screening all prospective tenants.
0 Reply
Tanner PileBusiness Member
Real Estate Broker · Colorado Springs, CO · Member since 2019 · 389 posts · 326 votes
3y
@Tiffany Onwudinanti
I lived in Pueblo for 4 years and I would stick to the North section of the City. Near the CSUP campus on the east side is a good area aside from Pueblo West. The south and central areas can get rough and will provide you will all types of tenants.
Tanner Pile4.931 Reviews
Website View Page
0 Reply
Jenny Bayless
Real Estate Agent · Colorado Springs, CO · Member since 2016 · 109 posts · 96 votes
3y
@Tiffany Onwudinanti I am primarily a Colorado Springs investor, but purchased my first buy and hold in Pueblo early 2022 (so going on almost a year of ownership). It has been a great addition to my portfolio- 1980s build and it is near the CSU Pueblo campus. I have a good PM, good tenants, and quite honestly, I forget I own it sometimes :). I think the city has a lot going for it economically, but it is important to be picky as to which areas you decide to buy in. I will DM you some of the economic research we've worked on with Pueblo specifically.
2 Reply
Jane S.
Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 502 posts · 167 votes
3y
I'm also a COS investor, so Hi! I was UC on a very nice SFR in the lovely older area near the hospitals & parks central pueblo BUT the inspection turned up big problems. The exwife had allowed the exhusband to live there for 2 years (she had moved to east coast with kids) and he was a slob who neglected the property and they were underwater which the listing agent knew but didnt tell us which would have meant a $19K increase at closing no thanks. I had been seriously considering Pueblo but ONLY in that neighborhood of elegant old homes. Then I realized I hated driving there to manage the rehab etc. But if you can do a good trouble free deal and find a PM who wont rip you off, or you can house hack by moving there for a while and renting your place here in the Springs, I think its a good idea. I would have been able to rent that home in a minute to a doctor/hospital exec and family. Walking distance from work, It had lots of potential. I forgot the address and dont remember the street, there was a bus stop with a bench right in front (MIL perk!) I did a lot of chatting with Pueblo folks and they love it there, they would never move, the houses are passed down within the family so its an interesting market. Just visit the corner store and ask the owner what areas to avoid. I'm gonna go look at the pueblo map to see if i can remember the location.
1 Reply
Michael Wentzel
Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
3y
We have been in the Pueblo market for about 10 years with 25 units. They are mostly C-class rentals. We have had a few stories of terrible tenants, but we had a few stories of terrible tenants when we had B-class rentals in Colorado Springs. We love the community and have been extremely happy with our rental properties. Send me a private message if you need a property manager recommendation.
Mike
2 Reply
Tiffany Onwudinanti
OP
Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes
3y
@Jenny Bayless I got it! Thank you so much. I'll definitely being reading that article. Is Pueblo a market where the BRRRR strategy could work?
1 Reply
Jenny Bayless
Real Estate Agent · Colorado Springs, CO · Member since 2016 · 109 posts · 96 votes
3y
@Tiffany Onwudinanti Absolutely, we have clients that have BRRRRd single family homes in Pueblo, and we actually have one client in the middle of a 4-plex BRRRR. I will DM you the numbers for a single family BRRRR that was completed for you to look at.
I love the BRRRR strategy, but as the market is a bit volatile at the moment I think there are some attributes to be aware of and consider as part of your strategy (not specific to Pueblo, but generally speaking): In the current interest rate environment, it can be hard to predict where a refinance rate will land, and may widely vary between purchase and refinance. Another risk is that you may not be able to pull out as much cash as originally thought. Factors that can contribute to that include weaker than expected appraisals, rehabs that go over budget or take longer than anticipated, or a combination of both! Ultimately, this could result in less cash out than planned, or the investor's cash remaining in the property longer than expected.

Hope this helps some!
1 Reply
Michael Wentzel
Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
3y
@Tiffany Onwudinanti I believe we used the BRRRR strategy on all 19 of our properties in Pueblo, but they were purchased between 2013 an 2017. It was a different market.

@Jenny Bayless is giving good advice. BRRRR is always a good strategy, but with the market slowing you can't rely on appreciation and time to make every property to work as a BRRRR. I would be more cautious in this market and try to make your money when you purchase. Renovations and appraisals are variables that rarely work in the investors favor, especially with price growth slowing or retreating. So give yourself plenty of margin on the purchase and even if you leave some money in the property when you refinance, you should have a cash-flowing and occupied rental property in a good community with less than 20% percent down.
Mike
0 Reply
Norberto Villanueva
Real Estate Consultant · Colorado Springs, CO · Member since 2013 · 325 posts · 117 votes
3y
Hi Tiffany. I know we hear a lot about location, location, location and, not that it's not important but that it's at least equally, if not more important to consider "you" make money when you buy, which is just another way of saying it's all about the numbers, regardless of location. So, adjusted for the clientele as in, the target renter, make sure the following metrics are in-line and you should be fine long-term: Debt-service coverage ratio (DSCR) > 1.25, Return on Equity (ROE) > 7%, Internal Rate of Return (IRR) > 7% levered, > 6% unlevered, and your Operating Expense < 30%. A caveat on operating expenses is that you might be looking at a pie-in-the-sky opportunity if it's much lower than 20%.

Feel free to reach out. I'm always happy to help.
0 Reply
Jacob Krafka
Real Estate Agent · Denver, CO · Member since 2022 · 77 posts · 25 votes
3y
Hope all is well,
I have had some investors taking their talents down to Pueblo also, why? I think they like the low purchase prices and the flexibility they have with options down there. You won't be spending an arm and a leg just to start off, itll be a great place to get some properties under your belt.
0 Reply
Zac Johnson
Denver, CO · Member since 2017 · 2 posts · 0 votes
3y
Quote from @Tiffany Onwudinanti:

Happy New Year BP fam! I have an important question for the investors investing in Pueblo, CO.

What has been your experience investin in Pueblo but also finding tenants for your properties? Share the good,bad, and the ugly. And what you would have done different (if applicable).

I’m based out of Colorado Springs, and with the cushion of savings that I have, the Pueblo market is priced to where my dollar could go far. Yet, I’m open to any feedback as well.

Thank you!
Cash flow can be great. Finding good tenants has been a struggle for real. It has been a whole different game then finding tenants in Denver. Pride of rentership has not been a thing down here. If you have systems in place to really vet them that helps.
0 Reply
Tiffany Onwudinanti
OP
Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes
3y
@Tanner Pile Thoughts on the Bessemer/ Lake Minnequa area? Most of the properties on the market are in that 81004 area.
0 Reply
Tanner PileBusiness Member
Real Estate Broker · Colorado Springs, CO · Member since 2019 · 389 posts · 326 votes
3y
Quote from @Tiffany Onwudinanti:

@Tanner Pile Thoughts on the Bessemer/ Lake Minnequa area? Most of the properties on the market are in that 81004 area.

not my favorite area of pueblo. The quality of tenants in this area will make turnovers a bit longer. I like more north in the downtown pueblo section.
Tanner Pile4.931 Reviews
Website View Page
0 Reply
Tiffany Onwudinanti
OP
Real Estate Investor · Colorado Spgs, CO · Member since 2016 · 30 posts · 24 votes
3y
Quote from @Tanner Pile:

Quote from @Tiffany Onwudinanti:

@Tanner Pile Thoughts on the Bessemer/ Lake Minnequa area? Most of the properties on the market are in that 81004 area.

not my favorite area of pueblo. The quality of tenants in this area will make turnovers a bit longer. I like more north in the downtown pueblo section.
What would those zip codes be?
0 Reply
Caitlin Harlan
Member since 2023 · 1 post · 1 vote
3y
@Tiffany Onwudinanti How did this turn out for you? Did you find a good property/deal?
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.