AZ / TX / CO / CA - which is best?

[Jennifer Thomé]

Hi all! We’re looking at investing $1.2M

In Phoenix, AZ, Colorado, Austin, TX, or Apple Valley, CA.

4 family members have chosen these areas for various reasons, and we need to make a decision.

Would love your input! And we’ll be looking for agents, too, so please share if you are one. Need to reinvest soon as it’s a 1031.

Thanks!

[James Carlson]

@Jennifer Thomé

I wonder where an agent from Denver, Colorado is going to land on this question? Hmm ... 

Seriously, You've chosen some great markets, but here's why I think Denver is a solid long-term buy:

1. Appreciation potential over the next 10 years is strong. Now, cash flow isn't great unless you get creative (see point #2 below), but cash-flow is a small game, IMO. If you're looking to park money in a great asset, there's no cash flow that's going to make up for your property being worth double in 10 years. There's tons of tech money and coastal migrants coming in, and there's just a great energy about this town.
2. Get a second-home for family visits to ski and hike and enjoy our awesome city. If you buy in one of the Denver-area cities that actually allow Airbnb and short-term rentals in investment properties, then you get a trifecta of benefits:
   • You can actually cash-flow quite nicely; and
   • You still get that same appreciation play; and
   • You have a home to visit in the best city on your list (see point #3 below)
3. Denver and Colorado are just great places to live and visit. 300 days of sunshine, proximity to the mountains, numerous "charming" areas with bars and restaurants scattered in neighborhoods, great beer, legal weed (if that's your thing), awesome arts and parks and no humidity (sorry Austin, your air is just too heavy!).

Whatever you choose, I hope you return to this thread and let us know. Good luck!