Updated almost 10 years ago on . Most recent reply
Newbie from Parker, CO
Hey everyone,
My name is Canneton and I’m from Parker CO. I’ve been thinking about getting into real estate for some time now (single family and multifamily rentals) and have been doing quite a bit of reading on the subject. I recently ran across Bigger Pockets and it has really made me more excited about jumping into this. I’ve listened to a dozen or so podcasts and started listening to the Wednesday evening webinars as well with Brandon and Josh. These guys are great! This last weekend I joined as a Pro member to get all the resources and benefits and am really excited to use them.
I work full time as an engineer so my plan is to work real estate part time to generate extra cash flow and build up some assets. I’m currently researching options for financing such projects and plan on buying my first rental within the next 4 months. However, with the market being so hot in the Denver area, I’m a little hesitant about this being the right place and time to invest as a newbie. But if Denver is not the right place for me right now I'll be expanding my search out of state.
Anyway, looking forward to learning from many of you and hopefully working with some of you as well.
Most Popular Reply
Hey Canneton, welcome to bp man! Yes Denver process are high, however the price is driven by demand, and that's not showing signs of slowing anytime soon. The popularity of the city is overflowing into the surrounding areas and causing rents all over to skyrocket. With mortgage rates as low as they are, you can enjoy nice cash flows, low mortgage payment and high rents. An example: I have a property closing in Parker on Wednesday for a young client who was out priced from buying closer to Denver. He doesn't mind living in the subarbs because he gets more bang for his buck, he can rent out one of his rooms to cover his mortgage payment - high rents, and he can jump on the light rail for an easy commute to work in the city. I'm seeing so many millennials do this because of these reasons. The light rail has made the suburbs an easy commute into the City and more desirable to the millennial crowd.
And in your case, since you're in it to enjoy the cash flow, so long term, even if there does come a market dip in the future, you can ride it out. Historically, real estate has increased about 4% annually. Denver area has been nice recently with over 10% annual increases. Don't shy away from Denver area investments, just need to find the right deal for you.