All Forum Posts by: Eric W.

@Eric W.

I agree with Alexa above. It seems like if you want to invest in Colorado, and you also like to visit Colorado a lot, then a short-term rental or Airbnb property makes a lot of sense. You can get all the trappings of a real estate investment -- appreciation (hopefully), cash flow, mortgage paydown, tax benefits, etc. -- while also getting a place for you to stay when you visit.

When it comes to the money, you may not have a choice. First question I have is where would you be looking? There are still some second-home loans that only require 10% down, so maybe you'd qualify for that, but they're getting strict about those loans. If you buy it as a pure investment, then you'll have to put down 20% and almost anywhere in the Denver metro area, and most of the mountains and down in Colorado Springs, you're going to likely need to spend at least $500k to get anything decent for an STR, and 20% of that is the money you're talking about. So you likey don't have an option of going much above that anyway.

I wish you the best in your search. Colorado is such an awesome place to live. I've been here for 11 years and still feel grateful for the weather and the mountains. Cheers!

Hey Eric! To get the best return on your money, I would recommend purchasing a short-term rental - these generate significantly more cash flow than long-term rentals. This could also be a great option for you since you spend a good amount of time in Colorado, so you can use it whenever you'd like rather than having a tenant occupying it constantly. As far as when to buy, it's tough to time the market perfectly since no one really knows what will happen in the future, as much as we try to predict it. Right now competition has dropped off significantly making it much easier to purchase a property, so if you are wanting to get started investing now is a good time. The rest of your questions depend on what part of Colorado you are interested in - are you thinking the Denver area, or somewhere in the mountains?

Hi @Katrina Morato

Investing in Colorado-like anywhere-depends on what you're looking for.

Short term renting is a great option here especially if you can find a property in a mountain town for skiing. Those can certainly be hard to come by nowadays. You can even find great deals in the metro area close to I-70 (the main highway route to ski resorts). These properties are great for those looking for skiing, hiking, and mountain biking, while also being close to Denver to see the city. Best of both worlds!

In the greater Denver Metro area, prices have risen significantly. It can be pretty difficult to find seriously cash-flowing properties if you plan on using financing. Not saying it's impossible. If you find the right deal, it can certainly work in your favor. The great thing about the Denver Metro area is that it combats drops in the market. When the rest of the country sees home prices fall, Denver doesn't get hit as hard or even remains stagnant. It's certainly a great market for appreciation gains.

There are some interesting plays developing the further out from Denver you get. Look North-East, or even South and you can find some growth opportunities. This is something that a good real estate agent can help you with for sure.

Feel free to reach out if you want a few connections with folks here in Colorado to help you start your journey. I'm sure there are many in this forum that will jump in conversation to help!

I was born here in Colorado so you'll have to excuse my bias, but Colorado is the BEST!