The Denver Market..... My 2 cents worth of a opinion -
I would not do the deal. Stick to the evaluation numbers you should be using..
The market is tough in Denver which means finding a good deal is like finding a needle in a haystack.... Your are better off taken the conservative route than taken a gamble about the future.
I don't think the Denver rental market is going to see the same 8% to 9% rate increase it has for the last few years. Why ? Because the rent prices would double from what they are today in approximately 8 years.
Today's average rental price in Denver with a 9 % increase for the next 8 years.
One Bedroom One Bath: Today $1275.00 8 years from now: $2550.00
Two Bedroom One Bath Today $1678.00 8 years from now: $3356.00
Lower end rentals averages:
one/one Today: $865.00 8 years from now: $1730.00
two/one Today: $1250.00 8 years from now: $2500.00
To afford the median-priced rental market here in Denver earners need to make approximately $35.00 per hour to abide by the rule of thumb that annual housing cost should not exceed 30 percent of a person's net income.....
Income is not and will not keep up with that type of pace.
Good luck deal hunting......
