Where to invest in Colorado's high-priced market?

[Tim Schroeder]

I'm looking to purchase my first income property to rent out and build an income stream, undecided on LTR vs STR (AirBnB). I plan to buy one this year, and hopefully another 1-2 next year and go from there. I have owned properties before, but never as an investment. I have been doing my homework and am pretty well-informed for a newbie and am ready to take the plunge. BRRRR, here I come!

My problem is, I'm uncomfortable buying OOS especially my first time, but prices in the Denver (and whole Front Range, really) are just too high to be attractive. I don't want to flip, so I'm not looking for a cheap fixer-upper. I'm very handy and could renovate myself, but I have a full-time job and a family so there's no time to do my own work. So basically I need something that doesn't need a ton of work (contractors are hard to come by, I hear, thanks to the building boom). What I do have going for me is down payment and renovation cash -- enough for several properties.

So I am struggling to find a niche. I feel like I need something close to home to get my feet wet and learn the ropes, but from what I read it's hard to be profitable buying in the Colo market. Denver/Boulder/Longmont/FtCollins all look too expensive.

What's my best option here?  Colorado Springs?  Greeley?  Pueblo even? (hey, I know it has problems but does that rule it out?)

Many thanks, Tim

[Tyler Work]

@Tim Schroeder To echo the others on Colorado Springs, it could potentially be a good market for STRs since they have no primary residence rule.  @James Carlson does a class down there and has been very informative about doing STRs for investors in the Springs. Here's a word of caution on the STR route: from my research I've found that prices are generally too low to get the cash flow most investors are looking for from a managed Airbnb. I recently purchased a market report from AirDNA on CO Springs and would be happy to share if you're interested. I think it is definitely possible, but you'll have to be careful because generally travelers aren't willing to spend as much visiting CS as they are Denver.