Denver Rental Market

[Lee Oday]

Looking for feedback from the community in regards to buy and hold cap rates and/or cash on cash returns. I've seen recent transactions across the metro area where investors have purchased properties with cap rates around 5%-6% and COC around 6%-7%. I can't imagine these numbers being too impressive. I assume some are looking for an appreciation play. Question is, are these numbers satisfactory for this market? Or, are some buying thin deals because of the lack of good opportunities? Feedback appreciated, thanks.

[Katie Fiola Jones]

I work at a property management company as a leasing agent. What I'm seeing currently is that the rental rates downtown Denver are starting to level off. In fact, in certain areas, we are having trouble getting properties rented because of all of the new high rises. The older places are second choice and therefore are taking a hit in rental prices. I have had to decrease the prices significantly for the older properties in order for people to consider them against the new builds. 

Just something to think about when it comes to rentals. Not sure if you're looking more downtown or more suburbs. I've been having more luck renting out properties outside of the city.