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Finding the Best Community for a Single-Family Home Investment Real Estate

November 28, 2018

Location is everything for your investment real estate. When considering a place to invest in for a single-family home, you need to factor in the desires of your potential tenant that will be most profitable for you. Single-family homes are a great investment for a rental, allowing you to have a hands-off approach, giving your renters freedom and flexibility. From best factors to consider and HOAs, to Denver’s top neighborhoods, learn about the many things to help you invest in your first or next rental. 

Factors to Consider in an Area

  • Income levels: Choosing an area affordable for middle-income families will help you create a steady stream of income. Rentals are just as much about your potential customers to get a return on investment. 
  • School districts: Those looking to rent a single-family home are often parents, making school districts important. You do not need to invest in the best school district but opt to at least invest in a medium to highly reviewed. 
  • Crime rates: The crime of an area can play an interesting role in rentals. On one hand, many up-and-coming neighborhoods are in areas with higher crime rates. At the same time, you have to make a smart decision for tenants. Research an area and the types of crimes that occur there when making your decision. Research any future development for an area to get an idea if there will be changes in the future that would reduce rates.  

To HOA or Not HOA?

Neighborhoods with homeowners’ associations (HOA) have their pros and cons. A premier benefit is the maintenance that occurs, being one less thing for you to manage. At the same time, there are rules. Some neighborhoods do not even allow you to have a rental in a neighborhood with an HOA, so it is best to do your research early. Do renters pay HOA dues? As a landlord, this is something you can work into your leasing agreement. 

Denver’s Top Neighborhoods

The Denver area is booming, making it the perfect place for a rental property. Some of the hottest neighborhoods to invest in include: 
  • Mar Lee: The Mar Lee neighborhood provides the urban feel with affordability. This diverse neighborhood falls right into the median income level and a variety of amenities. The centralized location is great, aiding in commute times. 
  • Cheesman Park: A popular neighborhood for rentals, the Cheesman neighborhood is home to a popular park. Just a short distance from the popular Capitol Hill area, the area is booming. 
  • Congress Park: The Congress Park neighborhood is full of great restaurants and local shopping, with quality school districts and amenities. 

For more options, explore the top five neighborhoods to search for investment real estate in Denver. 

As you work to finalize your decision on an investment property, DenCo Property Management and Sales will assist. As your local go-to full-service property manager, take advantage of our services to help you be a profitable investor. Call us at 303-722-9688 to see how we can help you in the next phase of your investment career.