Updated Sept 2026
Can you become wealthy by owning investment properties?
Some of the wealthiest individuals in the world have made their fortune from real estate. Think of Arnold Schwarzenegger, Ray Kroc (McDonald’s founder), and even Vanilla Ice. One of the positives about real estate is that it’s a tangible object you can touch, wrap your arms around, and even live in. Shelter is one of the three basic needs every human being requires, and a home will never go out of style.
Why Invest in a Single Family Home?
Investing in single family homes is the simplest way to get started in the rental property business. It’s easy to grasp the concept, and your financial risk is lower compared to other forms of investing. Today’s market conditions make timing worth a second look too: Denver’s housing market has shifted toward more balance in recent years, with inventory up and homes spending more time listed than during the fast-moving years of the past. That gives buyers more room to negotiate than they’ve had in a while, particularly if you intend to rent the property out.
Disclaimer: We are not attorneys and we are not giving legal advice. For legal advice and questions, please contact an attorney.
6 common questions to keep in mind about owning an investment property:
1. How many rental properties do I need to receive a good income?
Honestly, it depends on your goals. If you’re using the rental income as active or passive income, some investors have one property, some have five, some have fifty. It just depends on what your goals are. As long as you’re either breaking even or cash positive, that’s a great place to be as an investor.
2. If I buy a new build property, will I have maintenance issues?
When you buy a new build property as a rental, it’s important to remember that maintenance issues can still arise. Often there are items on the outside of the property that still need attention, like adding a fence, and sometimes items on the inside don’t work properly right off the bat. That can put you in a position of coordinating between the home warranty company and the tenants living in the property.
3. How long until I make my money back on my investment property?
Owning an investment property is a long-term game. You might not always see a monthly profit right away, but over time, rental prices tend to increase, which leads to increased value and equity. The goal is to be cash positive each month, but it’s important to be realistic when you’re first starting out. You might just be breaking even in the beginning.
4. Can you really earn passive income with a Denver investment property?
In short, yes. It can sometimes take time for the value of the property as a rental to outweigh the monthly costs of owning it. But over time, a rental can absolutely become a source of passive income.
5. Is owning an investment property stressful?
It depends. It certainly can be if you’re not familiar with property management law, you have difficult tenants, or you’re facing a lot of maintenance expenses. Hiring a professional property management company takes over that stress and provides peace of mind so you don’t have to worry about it.
6.¿Es estresante mantener una propiedad de inversión?
Puede ser estresante para usted si no está familiarizado con la ley de administración de propiedades, si tiene inquilinos difíciles o tal vez muchos gastos de mantenimiento. Al contratar una empresa de administración de propiedades profesional, ellos se hacen cargo de todo el estrés y pueden brindarle tranquilidad para que usted no tenga que preocuparse por eso.
Learn More About Owning Investment Property
If you’re a landlord looking for additional clarity on laws, we recommend our Colorado Landlord Tenant Laws page. Contact us today for a free rental estimate.
