I've been watching my local rental and housing market closely over the last 6 months (btwn Den and CS) and can't help but get the impression that there may just be a temporary investor/rental glut at this time. I'm seeing difficulty in finding qualified renters for some landlords (who I've spoken to) and have seen an uptick in the number of units where prices are being cut, sometimes even 10-15% at a time.
As somebody who wants to step into the rental market myself (though likely not in CO), I plan to ease in with just one unit at first, cash, and add more at a rate no faster than 1 additional unit every six months, knowing full well we're likely to be in the later innings of what's been a lengthy economic expansion.
In a dubious market, I know it pays to have the nicest unit on the street. Having plenty of headroom in your numbers is paramount, hence my going in cash on the first unit. But what other techniques are you utilizing to ensure that you can weather a vacancy storm in your market, especially if you don't have a large portfolio to carry a few vacancies? The quickest way out of this industry is to have a bad start, so I'm looking for any tips that can hedge me if the market were to turn as I step in.
Thanks all!
