Downtown Denver condos

[Carrie Brauninger]

Are condos in Downtown Denver a good purchase?  I've been reading mixed things.  Regarding buying in Denver.  Think things will dip or just continue to go up since so many people are moving here?  Considering moving to downtown/cheeseman/cap hill and then using my house in the north suburbs as a rental.  Then possibly moving again in 2 years.  Nomad strategy.

[Peter Jakel]

Denver is a great market but the answer to your question is always in the details. Cap rates are low in Denver, but if you can find something below market that needs some work, a value add strategy might work. I’d search for the right opportunity in which you can put some capital in to upgrade an older condo in the right areas. Just my two cents.

[Kevin Smith]

Cash flow can be difficult to find in those neighborhoods especially when you consider most HOAs are $300-400/month.  Having said that, if you're going to live there for 2 years, by the time you move out, market rent may very well have risen another 8-10%, and you could go the furnished, monthly rental route, which will demand even higher rent.  Also, I see Denver being under supplied for a long time to come leading to further appreciation.  To echo @Peter Jakel 's point, you could do some renovations while living there and get even more appreciation.  

[Stuart Grazier]

I don't think you could ever go wrong with buying in downtown Denver, especially if you plan on living in it. Cashflow may not be the best, once you move out, but I'd bet you'll have strong appreciation! 

[Jimmy Vasquez]

Nomad strategy works great.  My wife and I have done it for 20 years and help other people do the same in the Denver/Colo Spgs area.  There a peaks and valleys but over time cash flow and equity increase.  It's a great way to get an owner-occupied interest rate and, especially now, take advantage of low rates.  

Looking for the beat up property on the nicest street is a great way to get sweat equity, which can help maximize cash flow.  Be sure to see if your condo includes parking space(s) and understand association fees and how they impact cash flow.

[James Carlson]

@Carrie Brauninger

Depends on what you think is a "good investment." My wife and I own two condos in the Capitol Hill neighborhood in Denver. We have both furnished and rent them to traveling nurses and remote workers. They're great rentals for us. Now, we bought one of them in 2015 and the other in 2018, so prices are going to be different now. Still, with a furnished rental model, you may be able to cash flow, and long-term I think Denver's only going the way of Seattle and San Francisco. So much money flowing in here that if you have the time to buy and sit on something you're going to be in a good position in 10 years. 

I wish you luck!