You're engaging in alot of speculation if you think that prices there are going to continue to run up like they have in past 10 years.

Hoping for future appreciation is speculation, not investing.

However, the optimistic (speculative) side of me thinks this $400K home was $650K 2 years ago and is highly depressed because of the hardest RE crash in modern history and the tightest lending in who knows how long.

Wheatie makes a great point: A Rose by any other Name is Still a Rose.You are speculating that the property will be desirable, causing value to go up, ie. appreciate.

Further thoughts: This part is completely speculative... however, I have to say their names bother me.

Both are contracts of speculation on an underlying asset for a finite amount of time with the possibility for profit or loss. 

if you're not - then you're strictly speculating about appreciation values - and this i don't think you're doing, so if you're buying at market value - then you're not investing.the BOTTOM LINE is for you, as a new investor, - you must buy below market.

I am more into cashflow for now than speculating on appreciation anyway.

Speculation is what drove the bubble and many of the tools of that have been removed from consumers hands.If you are over extended there is no time like the present to pull back and invest within your means.Denver Metro population is growing, we are adding jobs, and companies and people are moving here.

That is pure speculation.