Newbie in Denver, CO

[Amanda Young]

Hi BP! I've been a BP member for awhile, read books and listened to the podcasts, and now ready to dig in. I'm looking to do buy-and-hold investing in the Denver metro area, ideally multi-family, but at this point, I'm just ready to make that first purchase (and make the mistakes that go along with it) to get started.  

What areas and strategies have you found work best in this area?  I had thought originally long term rental, but the more I read the forums on Denver market, it seems like short/medium term are the way to go?  What areas are people finding the most success in this strategy?  Just when I think I've narrowed down my strategy, I get caught up in more questions (doubts?), so any input would be greatly appreciated! Curious to hear what has worked well with other in Denver metro! Thanks!

[Steve K.]

Just like any market, location is everything. Denver has a lot of areas in the path of progress both on the edges of already hot areas and also within previously over-looked pockets in certain areas that are kind of run down but are about to be revitalized. I've been buying multi families that have some good value-add potential by light rehabbing and raising rents, and I shoot for locations that are likely to have great appreciation. It's been working well. I'd recommend learning the city as well as possible and pay close attention to new developments, light rail lines, opportunity zones etc. Some areas that were previously the butt of many jokes are becoming desirable. The barrier to entry is high for multifamily buildings and most are traded off market. There isn't much available for under $600-700k. But if you have the downpayment funds for 25% down on a $1M+ MF property and are connected with the handful of brokers doing those deals, a lot more opportunities open up.