Help with advice in the Colorado Springs area

[Christopher Scott]

I live in California, but the market out here is getting so expense we're considering other places and Colorado Springs keeps popping up. Anyone live there and willing to provide some advice on what neighborhoods are worth investing in, which ones should be avoided (if any), and any unique things about Colorado Springs (or Colorado for that matter) I should consider? I understand snow may be an issue at times of the year. No so much for us here in San Diego.

Thanks

[Colin Smith]

@Christopher Scott

This is just my opinion here, I personally would invest in all parts of Colorado Springs. I personally would take a "C" neighborhood over an "A" neighborhood any day as the ROI is much better. The management of the property itself is far more important than the neighborhood.

Something to note about Colorado Springs, our single family home prices have risen so quickly over the last few years the rents have not been able to keep up. If you're looking to put the minimum down on a single family (20%) and account for all short term and long term expenses, you're going to be a cash flow negative for a while till the rents rise high enough to keep up. 

I would suggest looking at the small multi-family (requires 25% down). These can be equally challenging as there are very few worth considering on the market at any given in time - sometimes none at all and it can be a waiting game. The cash on cash is not going to be exceptional but we've seen significant appreciation even in these properties in the last several years. If the trend continues then you can have tremendous ROI in the long run meanwhile the minimal cashflow keep the property improving with forced appreciation through renovation and raising rents that may be under market value.