For many years, Denver has been one of the metro areas in the United States with the quickest growth. It stands out since it’s noted as being among the ten best living places in the country. There is sufficient justification for many prospective real estate investors to consider purchasing Denver investment properties.
Certain places are superior to others and a potential investor can only identify such a place with the help of a local property professional. To help you make the right investment, the team from Keyrenter Property Management Denver has put together the following real estate investing tips.
What is the Denver Real Estate Market Like?
Investmenting in real estate in Denver is a wise choice for various reasons. There are opportunities for decent returns on rental investments or Airbnb because of the area’s sizeable population, booming tourism industry, and vibrant economy. All this coupled with the area’s tremendous growth will likely increase demand for rental properties.
Almost half of the population rents, according to market analysts. What’s more, the Denver Post claims that the city is still a buyer’s market. Previously unmet demand and historically low mortgage rates have led to a buying spree.
In general, the city’s housing market is dominated by single-family residences. However, condos, multi-family homes, and townhouses are available and ready to provide income for savvy investors. Considering its comparatively lower taxes and landlord-friendly legislation, this appears to be a perfect moment to buy an investment property in Denver.
Tips for Purchasing Property in Denver
Here are steps that real estate investors should follow before sinking their funds into a property purchase:
1. Investigate the Local Market in Denver
Buying a rental property in the right neighborhood will help you attract potential tenants and retain them long-term, thus ensuring steady income. Therefore, you should look into the best neighborhoods in the area to identify where you’d like to purchase an investment property.
When doing this research, consult with neighbors and find out what they think of the area and look at the neighborhood newspaper and blog. Additionally, learn about potential rental revenue. It’s important to perform a comparative market analysis, to better understand your potential profits on your Denver investment property.
2. Plan Ahead and Prepare Financially
Having stable finances is essential for successful housing purchases. When looking to purchase a property you have to consider all the costs and procedures involved with buying a primary. From there you need to think about expenses associated with making the property rent-ready. This could include costs for renovations and property marketing.
Be sure to fully assesses your financial capabilities and conduct estimates on potential earnings before investing in a property. Doing so will protect you from over-investing.
3. Select a Home that Meets Your Needs
Establish your goals clearly before making an investment property purchase. Certain forms of real estate are better for positive cash flow if you want something that will supplement your income more quickly. Others may be slightly more expensive to operate but will appreciate in value more over time.
Whatever your plan, there will always be some properties that are better investments than others. To make sure you choose something that will draw a steady supply of tenants, take into account factors like rental demand, continuing maintenance, property values over time, and location.
4. Consider the Location Where You’re Buying
Location is crucial if you want to attract tenants. The ideal location will vary depending on the kind of property and renter you’re looking for.
For instance, a chic newly-built apartment for young professionals will be more appealing if it’s close to the city and has excellent dining or entertainment options nearby. On the other hand, if you’re buying a four-bedroom house in the suburbs, consider locating it near public transportation, parks, and schools to draw in families.
If you want to reach a wide tenant demographic then you should also consider general amenities connected to the property that they’ll be looking for, like storage space, parking, or outdoor areas.
5. Work with a Real Estate Expert
You require a person who is well-versed in the Denver real estate market. This is particularly valid if you are a novice investor. Finding the correct individual for the job is the key in this situation because not all agents are created equal.
Look for someone who understands your investment objectives. You can even consider working with a property management company as they may be equipped to help you with not only the purchase of the property but then with its management.
A property manager will be able to tell you what types of properties tenants are looking for, where the best locations are, and what kind of rental demand to anticipate because they are local experts. From there they’ll be able to market your units, screen tenants, and handle the day-to-day operation.
6. Look for Low-maintenance Properties
Your tenant doesn’t want you to spend every weekend making property repairs, and neither do you. A house that requires a lot of upkeep can drain your finances, and time, and disturb your peace of mind.
A fixer-upper may be cheaper at first but the cost of repairs can add up quickly. Investors should therefore consider purchasing a brand-new property as they’ll likely spend less time and money on required maintenance.
When choosing to buy an investment property, you should do a lot of research, assess your finances, identify the right locations, and consider other aspects discussed above. Rental property investments can be very fruitful but require a lot of work and planning.
Partnering with a qualified property management company like Keyrenter Property Management Denver will allow you to enjoy your earnings without any hiccups. Our property managers will gladly assist you in achieving your investment goals. Contact us today to learn more about our property management services!