Let's Talk Colorado - When and Where to Get in the Market

[Alex Vere Nicoll]

I currently live in Denver, CO and have considered investing in a condo or small house as close to the city center as I can afford. The market seems to have cooled off VERY slightly in the last couple months, but in general Colorado is a very hot market.

My question is do people think now is a good time to get involved in the market? Also, is Denver the best place to invest at the moment? What about mountain real estate close to ski resorts? As the population climbs, property values will increase, so what's everyone's view on where to invest?

[Bill S.]

@Alex Vere Nicoll where to invest is the age old question. My preference is to do so where I can add value to the situation by contributing something to the deal beside cash. I would say figure out what kind of tenant you want to deal with and then buy the property that they will rent. That goes for a condo or a mtn property. From what I have been able to learn, Mtn property only works if you have a) lots of cash you don't mind getting low return on or b) experienced local low cost hands on vacation rental management system.

While @Dan Wallace has some good points so does @Sean Gilliam and @Eric Young. Now you have to decide what to do.

Personally, I am looking to buy below market so I have equity at closing. If things start to head south I can get out with my skin intact. The key to riding out downturns is to have margin. Operating cash margin, reserves margins, and equity margins. Those will carry the day during a down turn. I think that Dan's perspective has about 33% chance of happening. Mostly I operate in Eric's space. Over the years, I have seen people much smarter than me miss the market timing. If a deal works for you, has cashflow and you have some reserves, in 30 years it won't matter that it went up or down 25 years ago. Rent on!