Colorado Springs vs Fountain

[Jenny Bayless]

I wanted to see what everyone's thoughts were on Colorado Springs vs Fountain CO regarding medium to long-term buy and holds for single-family homes.  Would these locations be classified as the same market, or are they distinct?  Is the Fountain market showing similar returns as CO Springs? Does it rank the same in terms of competition on the acquisition-side as the Springs? Thank you in advance!

[Colin Smith]

There are pros and cons to both areas but overall both these town have begun to grow into one another  and you may drive from one to other without realizing it.

Overall most people like to move to bigger cities where there are more amenities, restaurants, and things to do. With that said, those things drive the prices of homes in Colorado Springs up compared to Fountain. Looking at prices, you can definitely expect to get more house for your money in Fountain. People can expect the same for rent. Rent is going to be on average higher in the Colorado Springs area. Can you get a better ROI in Fountain compared to CS? Most likely, simply because the cost of property is less, and even though rent is less too, the ROI percentage number work out a little better, but it's not going to be an astronomical difference. You may also expect to see higher vacancy rates in Fountain simply because there is more of a draw to the CS area for people.

Keep in mind that everything I just said is very generalized. There are good and bad parts of CS like there are good and bad parts of Fountain where ROI's, tenant quality, rents, etc. are going to vary quite a bit, even within the more localized market of both cities.

Feel free to reach out if you have additional questions.