Has Denver real estate piqued your interest, but you aren’t sure if it is actually a good way to supplement your income? One of your key signs that it will benefit you and future tenants is the rise of people moving to the area. Denver remains one of the country’s fastest-growing cities. This growth will help you in two ways. First, due to an influx of people, there are fewer houses on the market, causing prices to rise. For those unable to afford to buy a home, rentals are the perfect solution. Second, some people are new to the area and would like to test out before making a commitment to establishing roots. This is where you come in and help both groups of people find a place they can call home. However, it is important to be smart about it.
Choose an Up and Coming Neighborhood
Since Denver’s housing market is very much of a seller’s market, it is important that you make smart decisions as an investor. Instead of making top dollar purchases in high-demand areas, do your research on up-and-coming neighborhoods. These neighborhoods may not be picturesque, yet, but there are some tell-tale signs they are on their way to becoming the next great place. Some of these signs include:
- Opening of restaurants and activities
- Increase in millennials
- Moving in of local and chain stores and groceries
- New employment opportunities
- Addition of public transportation in the area
- Spike in rent prices
Appreciation of Assets
When you invest in a home that will be a part of the booming housing market, the value of them will increase over time. Similar to your 401K, you shouldn’t constantly be monitoring. If you plan on having a rental as a long-term investment, its value will grow and grow. A good sign for you as an investor is the stabling of the Denver market. While the area is still hot, the influx of homebuyers is slowly leveling. This will help with prices so you as a buyer can find better investments.
Investment real estate is a great way to generate income when you approach it in a smart way. The first way to ensure you are on the path to success is investing in a popular or up and coming location. You need the demand, so your rental never has a vacancy. For some homebuyers, a fixer-upper is an attractive and lucrative project. It is important to remember you have the capabilities, knowledge, and budget for the job. If not, you are looking at a money pit that you’ll need an expert to fix. Be sure you avoid the five mistakes that make house flipping a flop. You may also invest in a home that is fine as-is. Research upgrades to make to your investment property in Denver.
Help from Property Management
As you purchase your first residential investment property, DenCO Property Management and Sales can help you get the most for your money. There are a variety of tasks that come with being a property owner. Any areas you are not skilled in or have little time for we can assist with. This includes everything from leasing paperwork and rent pricing, to maintenance and working with tenants. Call us today at 303-722-9688 to see how we can help you be a successful property owner.