Colorado Springs Good/Bad Areas to Invest in SFH Rental

[Christopher Carson]

Hey BP Ladies & Gents,

First post in the forums. My fiance & I are looking at 2-3 bedrooms to buy and hold as rental properties in Colorado Springs. We live in Denver, and I have a few years experience in SFH property management but ZERO experience on the acquisition side.

As I'm scouring the MLS for deals, I don't know the springs area well enough to know the good/bad neighborhoods, school districts, etc. I'm curious - can any locals weigh in here on what the dynamics are w/ school districts, what areas (if any) I should be avoiding, or any other advice/info on the area. I definitely will be going out to explore the city some more, but am in the process of relocating back to Denver from Nashville.

Any input would help & I would so appreciate if any local investors would be willing to chat!!

Thank you - Chris

[Norberto Villanueva]

@Christopher Carson - thanks for posting. As a real estate practitioner in the Colorado Springs market for a better part of the last 15 years, I can recite the obvious...School District 20 has an excellent reputation overall, the north and southeast quadrants are some of the fastest growing and the southwest is largely quite desirable. But then, there are many fine schools in School District 11 and others to consider. There's also that the downtown and airport (Powers) corridors are picking up steam, along with its real estate. Of course, we have the nation's first Olympic Museum going in and are projected to be its Cyber Security capital, with a central location going into a now blighted area of North Nevada really soon, all of which will affect real estate values in the near future. Oh, and I love the Palmer Park area, where $500k fabulous homes are surrounded by $250k bread and butter properties.

With too many pockets throughout the market to realistically say, my two cents are to determine what your investment criteria are, line up your proof of financing and/or funding capacity and/or to work with a local, investor focused real estate broker that can bring the resources and contacts (boots on the ground) you need to help you source, acquire and even manage your REI efforts.

I hope this helps and wish you all the best!  

[Colin Smith]

@Christopher Carson - I would agree a lot with what Norberto has to say about Colorado Springs. D20 and D12 are the most sought after school districts, then D11, and then D49. Having helped many teachers in town buy and sell homes, it seems to me D2 and D3 and are not always well talked about.

Colorado Springs definitely has many pockets, good and bad. You can drive into one neighborhood, cross a street, and feel like you crossed a major highway. I would recommend connecting with a professional Realtor in town who can work with you and your fiancé to help you find the home that meets your needs. I think there is also a lot more to think about than just school districts, for example hobbies. If you and your fiancé are mountain people and like all the hiking trails, or enjoy farmers market, and local events, I would encourage you to consider living more west. Adding a 30 minute drive to go do anything fun isn't worth $50 less per month in a mortgage for most people. If you like the idea of living in a newer more modern home, like to be close to shopping and major restaurants, something more east may be best. If you're somewhere in the middle, as is your budget, that is where working closely with an agent who knows this town can really make or break the experience for you as they can help find just the right pocket neighborhood for you.

[Gilian Gegawin]

@Christopher Carson  Hey Chris and welcome to Bigger Pockets! Bigger Pockets is the one stop shop for real estate investing. Get deals done the right way and connect with seasoned investors only on Bigger Pockets. Congratulations and I wish you luck on your journey to success. 

[Christopher Carson]

Originally posted by @Norberto Villanueva:

@Christopher Carson - thanks for posting. As a real estate practitioner in the Colorado Springs market for a better part of the last 15 years, I can recite the obvious...School District 20 has an excellent reputation overall, the north and southeast quadrants are some of the fastest growing and the southwest is largely quite desirable. But then, there are many fine schools in School District 11 and others to consider. There's also that the downtown and airport (Powers) corridors are picking up steam, along with its real estate. Of course, we have the nation's first Olympic Museum going in and are projected to be its Cyber Security capital, with a central location going into a now blighted area of North Nevada really soon, all of which will affect real estate values in the near future. Oh, and I love the Palmer Park area, where $500k fabulous homes are surrounded by $250k bread and butter properties.

With too many pockets throughout the market to realistically say, my two cents are to determine what your investment criteria are, line up your proof of financing and/or funding capacity and/or to work with a local, investor focused real estate broker that can bring the resources and contacts (boots on the ground) you need to help you source, acquire and even manage your REI efforts.

I hope this helps and wish you all the best!  

Norberto - thanks for the response. Will definitely look into the 2 districts that you mentioned. Sounds like there are quite a few economic tailwinds making CO Springs an awesome place to be investing in. Are there any areas where you can still find SFR's for <$200k around there??

Thanks again - Chris

[Christopher Carson]

Originally posted by @Colin Smith:

@Christopher Carson - I would agree a lot with what Norberto has to say about Colorado Springs. D20 and D12 are the most sought after school districts, then D11, and then D49. Having helped many teachers in town buy and sell homes, it seems to me D2 and D3 and are not always well talked about.

Colorado Springs definitely has many pockets, good and bad. You can drive into one neighborhood, cross a street, and feel like you crossed a major highway. I would recommend connecting with a professional Realtor in town who can work with you and your fiancé to help you find the home that meets your needs. I think there is also a lot more to think about than just school districts, for example hobbies. If you and your fiancé are mountain people and like all the hiking trails, or enjoy farmers market, and local events, I would encourage you to consider living more west. Adding a 30 minute drive to go do anything fun isn't worth $50 less per month in a mortgage for most people. If you like the idea of living in a newer more modern home, like to be close to shopping and major restaurants, something more east may be best. If you're somewhere in the middle, as is your budget, that is where working closely with an agent who knows this town can really make or break the experience for you as they can help find just the right pocket neighborhood for you.

Colin - Thank you for the insight man. So we're going to be living around the Denver area as my employer is covering rent & I'll be working there. I'm really looking to put some $ to work, and  cashflow a rental property or two. I plan on spending alot of time around the Springs in the next few weeks to get a feel for the area and the respective pockets. Mostly focused on the cashflow #s, so want to try and find somewhere reasonably priced with some upgrades needed, in a strong rental pocket...please let me know if you have any ideas - would love to work with you!

Best - Chris

[Norberto Villanueva]

@Christopher Carson - thanks again. Yes, CO Springs has quite a few things going that make it an awesome place for your investment capital. I'm not sure what the tail end of your "still find SFR's for..." question is, so I'll attempt to finish it a few ways.

...below market value - yes, but with a severely limited inventory (supply), we are in a strong seller's market which drives up prices (demand) and, there you have it. However, with acceptable projections for income and expenses, it's almost OK to exceed market value when focused on building long term wealth.

...good returns - yes, great? Sometimes. Just have to separate the wheat from the chaff, the cream from the crop well, you know. But there's a fine line to draw here. As folks wait for better days (another crash), areas like Country Club Acres show a 27% Y-o-Y increase over 2016, today. Do the math, and that $400k property this year is theoretically worth $508k the next. So the question becomes, can you afford to wait?!

...building long term wealth - ABSOLUTELY! One of the top markets in the country, our twenty to thirty year projections are strong.

All the best!

[James Wise]

Welcome to the site @Christopher Carson

[Christopher Carson]

Ha you hit the nail on the head with the first response in regards to below mkt value.