For out of state investors, Colorado can be a great opportunity for real estate investors due to its strong economy, low property taxes, growing population of renters, and wealthy neighborhoods. Reports show that home values in the state have steadily increased year after year, making Colorado a mecca for not only tourism but also for growing portfolios.
If you’re considering investing in Colorado, it’s important to conduct thorough research on neighborhoods, collaborate with a reliable agent, visit the property, and carefully review all local/state legislation. Follow these tips to make an informed decision and confidently add to your portfolio:
Identify The Right Neighborhood
Opting for a location that provides a good return on your investment is key to ensuring that you get the best value for your rental property. Take the time to conduct thorough research and find the ideal location that perfectly suits your needs. Be meticulous in your approach and don’t compromise on your investment goals.
In the city of Denver, there are multiple up and coming neighborhoods, but not all are equally good for investment. Cherry Creek, Washington Park and Highlands are some of the most expensive neighborhoods but which also attract a very desirable pool of tenants with high incomes. If you are looking for something in a lower price bracket, you can consider neighborhoods like Capitol Hill, Ruby Hill, Glendale and Hale.
Explore The Colorado Real Estate Market
After choosing which neighborhood to invest in, it’s important to research the local real estate market. This means understanding the area’s trends, prices, and demand. Get information from reliable sources like local agents and highly-rated property managers like CRPM. This ensures your investment will have long-term growth potential. Location, building amenities, and rental income are also important factors to consider.
Conduct thorough research on the ROI metrics of the city, such as average rental income, average cash on cash return, and average median home prices.
Understand which type of property is performing well in the market. Investors can find promising opportunities in both condominiums and single-family rentals in Colorado Springs’ flourishing real estate market.
Study Local Laws and Regulations
Housing laws vary by city and state in the US. Be sure to research and understand the regulations that apply to your area before buying, selling, or renting a home. State and local laws have the greatest impact on your housing situation. Lawsforlandlords.com is a great resource to start, but if you need help understanding the local laws, Colorado Realty and Property Management has over 17 years of experience to guide you through the best course of action.
Hire A Property Manager
Managing your property and tenants as an out-of-state investor can be quite daunting; however, you can ease this worry by hiring a competent and reliable property manager. CRPM will conduct regular inspections, provide proactive maintenance, manage your tenants, collect monthly rent, and send you an annual performance report. With your experienced property manager in place, it becomes easy to track all property-related activities successfully without being in the city yourself.
Colorado Realty and Property Management, Inc. is a full-service residential property management company with over 17 years of experience managing real estate throughout the Denver/Metro areas. Over the last two decades, we’ve helped 1000’s of homeowners become successful landlords and we are confident that we can help you achieve the same success!