Best place to start in Denver Metro area

[Kevin Noonan]

Good morning BP, I’m a complete beginner but have spent plenty of hours on the BP forums and listening to podcasts. I’m in my early 40s married with 2 busy kids. I’m a project manager for a local electrical contractor and have some money available to begin investing. Moving from our current home is not a viable option, so the live in method would be quite difficult for us.

I’m wondering whats the best place/ market is to get started? The Denver Metro area home prices are a bit out of reach for me right now, so we are thinking of the northern or southern areas outside of Denver. 

I would appreciate any advice from locals on referrals or meet ups to start networking.

Thanks for reading, and have a great weekend!

-Kevin

[Bridget Brazelton]

@Kevin Noonan

Hey Kevin, this market isn’t easy but it’s far from impossible. My partner and I have investments in Denver, Aurora and Colorado Springs and have managed to engineer cash flow out of each of them. I was stuck in ‘analysis paralysis’ for a long time, and here’s what helped me:

1) Think creatively: It’s easy to run cash flow calculators on properties around Denver and get discouraged at the results. I started researching different cities and learning where I could rent by the room to increase cash flow, or zoning districts where I could have or add a second kitchen to operate one property as if it were two, for example.

2) Follow Development: My first purchase in Denver was 5 blocks from the Purina factory in a, shall we say, ‘up and coming’ neighborhood. But you know what? I’m an unapologetic nerd and had been plotting where projects were taking place in Denver (Literally. In my office. With color coded pins. On a map.) I knew there’d be a walking path directly into RiNo soon, the highway would be placed underground with a park on top and that a nearby complex was undergoing a billion dollar renovation. Three years later it has provided me with almost free housing (thank you house hacking), and massive equity. I used a similar strategy to determine where to buy my first rental in Aurora. If it doesn’t cash flow, I won’t buy it, but buying in the path of progress gives you your best shot at increasing future rents and equity.

3) Reach Beyond the Keyboard: I overanalyzed everything before my first deal, and I largely did so alone and lurking on forums like these. It’s not until I reached out and started building a team and networking with other investors over coffee that things really began to move for me. We all have a passion for this or we wouldn’t be here, and it’s energizing to know you’re not alone!