I'm an out of state investor (CA) looking to invest in a MFH (duplex most likely) in Denver or Boulder sometime this year, price range flexible.
I'm considering moving there and house hacking, or just managing remotely.
The catch is - I've never been to Colorado (ever) lol. Don't have any connections, agents, etc. As such, I'm fairly clueless about investing in the area, let alone even living there. However, I've liked all aspects of what I've heard thus far. If anyone has any resources or insights they can share such as areas/neighborhoods they are bullish about or their experience owning CO rentals, I would greatly appreciate it. In general, what are things an out of state investor should look out for/know about when entering the CO market?
Rental Property Investor · Denver, CO · Member since 2017 · 24 posts · 14 votes
6y
I just purchased my first multi family in Denver this month and would be happy to share my experience. House hacking or nomading are both great strategies in this market. Check out Chris Lopez's podcast that focuses solely on Denver Investment Real Estate. That is how I started learning the market last year. Good luck!
Rental Property Investor · Denver, CO · Member since 2017 · 24 posts · 14 votes
6y
I just purchased my first multi family in Denver this month and would be happy to share my experience. House hacking or nomading are both great strategies in this market. Check out Chris Lopez's podcast that focuses solely on Denver Investment Real Estate. That is how I started learning the market last year. Good luck!
Rental Property Investor · Grand Junction, CO · Member since 2019 · 57 posts · 34 votes
6y
@Amanda Tell us about your experience. Where in Denver did you buy? What are the financials? Are you having any problems collecting rents or renting out units due to Covid?
Rental Property Investor · Denver, CO · Member since 2017 · 24 posts · 14 votes
6y
@Thomas - it's a duplex in North Aurora. It came with existing tenants, one of whom had a job impacted by COVID. But rent payments are back on track now. It was purchased for $415,000 at a 5.3% CAP rate. It could have been really nerve wracking purchasing my first investment property during COVID but I had a great agent and PM to put my mind at ease.
Rental Property Investor · Denver, CO · Member since 2017 · 24 posts · 14 votes
6y
@Jean Joseph Rents are $2795 total. One side has not been renovated so I think that number may come up slightly whenever we decide to renovate it. We have hired a PM. I would not want to do it myself right now in these crazy times!
Los Angeles · Member since 2020 · 88 posts · 36 votes
6y
@Joe Wang thank you for starting this thread. I am in a similar boat as well, a real estate entrepreneur looking to acquire my first property. Living in CA right now but I have been studying the Denver market and sub markets.
@Account Closed thanks for reaching out, connected!
Thanks for sharing your detailed insights @Amanda Young. Will check out his podcast! How is Aurora compared to Denver for duplex market? Why and how did you choose North Aurora, and what is that area like? Economy, tenant demographics, landlord friendliness, new construction, etc.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
6y
Price will drive everything. It's best to speak with a lender first. Once you have a price, then you can narrow down the areas. I personally like anything West of I-25, but I have rentals East of it too that do really well. I'm selling a triplex in North Aurora for a client right now. That area works well for rentals. I had one there a few years ago. I've got a duplex near Sloans Lake about to come to market and a 6-Plex just West of there that would all be good rentals. Again, price will determine what you can do. Boulder is insanely expensive, and is usually more of an appreciation play.
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Joe Wang - Multi-family is tough to make work here in Denver. I am not sure about you, but I don't get out of bed for any cap rate below 7%.
I have found the most success by taking single families, adding mother-in-law suites to them and renting out the main house & the mother-in-law. As an out of state investor, you'll likely make more than $1,500 over the mortgage and cash on cash returns of well over 10%.
This way you benefit with significant cash flow in a high-appreciating market. Win-win.
Real Estate Agent · Denver, CO · Member since 2017 · 145 posts · 99 votes
6y
@Joe Wang
I have been in your shoes. I house hack in NW Denver and love it! I live in a great neighborhood with good access to to downtown and the mountains, and shaving $$$ off my mortgage while also investing in RE!
Most clients I work with find house hunting in Denver proper to be too expensive for their goals (it cuts % off your ROI), and instead look toward the outer lying neighborhoods. The more developed neighborhoods (Cherry Creek, Washington Park, Highlands, RINO/5 Points) are cool but also more expensive. There are still lots of areas a little further out (Edgewater, Arvada, Lakewood; all on the Mountain/West side of Denver), where the numbers run a little better.
A lot of good advice so far on this thread. I also recommend working with an agent and lender who have experience with investors!
Investor · Denver CO · Member since 2020 · 17 posts · 4 votes
6y
@craig
@Craig Curelop Great idea about adding a mother in law suite to an existing SFH. Do you mind elaborating a bit on how this works? I guess permits are required?
Also - are you renting the main house and the mother in law suite separately? different tenants?
House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
6y
@Joe Wang, I would have to second @Amanda Young recommendation and reach out to Chris Lopez and his team. He helped my wife and I purchase our first house hack with a mother-in-law suite above the attached garage. We absolutely love it. Through the principles he taught us, in 2021 we will purchase a second house hack and turn our current property into a renal.
Additionally, his website has great free education content focused specifically on the Denver Market. I would recommend watching his deal analysis videos that dive deep into the numbers of his clients he has helped find investment properties for.
Rental Property Investor · Denver, CO · Member since 2017 · 24 posts · 14 votes
6y
@Ben Einspahr ahh, this is how I recognized your name. I just listened to Chris's househacking mastermind podcast and I kept thinking, why do I know that name!? :)
Where did you and your wife purchase that house with the suite over the garage? My husband and I have a 2 year old and I keep entertaining the idea of a househack, but we want to have some privacy. I'd love to find a house with a separate "carriage house" or ADU to be away from people, but I feel like that is a unicorn in Denver. Did it take you a while to find yours? What areas were you considering? Thanks for your feedback!!
House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
6y
@Amanda Young, I am glad you enjoyed the first episode of our new house hacking masterminds series! I am really excited to help build the house hacking community in Denver.
We purchased our house hack in Arvada, about a mile northwest of Old Town. House Hacking is definitely achievable with little ones running around. Having a separate entrance or ADU was a necessity in order to get my wife on board. Others may disagree, but I do not feel like they are a unicorn in Denver. Once you narrow down the location you want to invest, develop an understanding of the inventory so when something new pops up on the market you can jump on it quickly.
When we were searching, we narrowed down our location to Arvada'ish area because its close to my wifes work and great area to raise a family. We were searching for a little over a month looking at properties about ever weekend before finding the one we currently have.