Need advice, Colorado springs Colorado

[David Carrasco]

Hi everyone, I am moving to Colorado springs in a few months and am looking to purchase a home to live in for a couple of years then rent it out. This would be my first investment in real estate. I have been learning a lot here with BP but am still very nervous. My goal is to create passive income, if anyone has any tips on which areas I should be looking at or any advice I would greatly appreciate it.

[Anthony Dooley]

Buying a house to live in, for retail  price, in hopes of renting it, at retail price, in order to produce passive income will not work. This is especially true in expensive markets like Colorado Springs. The market rent, minus expenses will not cash flow enough in that market to justify the risk of buying. 

#1 you are new to that market, therefore the only information you have is internet and asking your new co-workers. It would be stupid to buy in an area that you don't know.

#2 you stated that you will only be there for 2 years. I assume you are military. This ensures that you will move away from your rental and will depend on property managers to look after your largest asset. What could possibly go wrong?

#3 The amount of cash flow, if you do the math, will not be worth the headaches.

#4 Appreciation has been great in that market for the past 10 years. Are you willing to gamble on that in the future?