While the population of Colorado has been on a slight decline, there are still almost 700,000 people in the city, and many of them are renters. If you've been considering becoming a landlord, Denver may be a good place to do it.
But how do you find a good investment property in Denver? What should you be looking for? We're here to talk about it.
Read on to learn all about our top tips for finding a good investment property.
1. Research Potential Locations
When people are planning on property investing in a "hot city," they often don't consider that not all neighborhoods or districts within that city are the same. This is especially true if they're not local.
When you're looking at real estate in Denver, make sure you're learning about various neighborhoods. Look at things like crime scores, neighborhood amenities, and anything else that could impact your ability to rent out the property.
This will also let you know who your ideal renters will be. For example, if you were to buy a property near a university, you'd likely be renting it out to students or other younger adults. If you buy one near a park and elementary school, you're likely targeting young families.
2. Check Local Prices
While you're doing that research, take a look at local housing prices. Consider how much you'd need to charge for rent in order to cover the mortgage and make a decent profit. In some cases, it won't be worthwhile unless you have the funds to hold onto the property for a long time despite vacancies.
Too many new landlords will buy investment properties and set the rent as high as possible for the city, but that ends up being far too high for the neighborhood. They end up having to lower rent prices after long-term vacancies, and they may even have to sell the properties altogether.
Many things influence potential rental costs. A good property management company can help you determine a fair rent for your property.
3. Assess Renovation and Repair Needs
As a new landlord, you want to get a good deal on your investment property, right? You may even be considering investing in a "fixer-upper." We caution you against that.
Unless you're already a handy person who has plenty of experience with home repairs, you don't want to buy a home that needs significant work. That property will be more expensive to maintain in the future even if you're able to cover the current repair costs.
It doesn't have to be perfect, but you shouldn't save money on a property just to go over budget on repairs.
Find Your Ideal Denver Investment Property
Finding the right investment property in Denver isn't as easy as it might seem. These three tips will help you get started on the right track so you can start your property investing journey.
Are you in need of professional property management services to make your life even easier? Let us help! Contact us for a free rental analysis today.
