Investing in NE Colorado

[Joshua Tikal]

Hey BP investors!

Have any of you invested in the smaller towns of NE Colorado? Fort Morgan, Brush, Sterling, etc. Properties are lower cost with lower gross income but cashflow is still possible. The great concern is demand. Can you invest in small communities with success? 

If you have any experience or recommendations I would greatly appreciate it. 

Thank you for your input,

Joshua Tikal

[Kathy Brasby]

We are property managers in Fort Morgan. The rental market here is hot.  People are desperate to find a place to rent, meaning we have low turnover on our rentals and usually have excellent applications for any new rentals before a unit even comes open.

It's a seller's market right now, making it more challenging to find new rentals. And, because it's a seller's market, several landlords have sold their rentals in the last year which has made the rental market even tighter. 

An example: we looked at a (supposed) three bedroom/1 bath SFR last week, priced at $60K. It had no furnace, foundation was shaky (cinder blocks stacked on old bricks, car jacks and poles in buckets of sand), the 220V for dryer and stove were apparently pig-tailed together. It needed a new roof at a cost of at least $12k, new siding, lots more issues. The third bedroom was really the landing upstairs. There were so many problems that we wondered if it was better as a scrape. Anyway, it was on the market about a day and under contract. There are a lot of houses similar, in bad need of rehab, that are being thrown on the market right now. It's challenging.