Does Denver still pique rental real estate investors’ interest? The answer is yes, but there are some caveats. On the positive side, people are moving to the area making the City a good place to invest in rental real estate. According to Axios, Denver grew 2.8 percent between 2020 and 2024. The national average is 2.6 percent among the 50 most populous metro areas in the U.S. On the negative side are high home prices and rental regulations recently passed and signed into law. DenCO Property Management (DenCO) blogs extensively on rental property issues in Colorado, so go to our blog page to get informed.
Population growth helps rental real estate investors in two ways. First, Denver does not build enough homes to satisfy the demand, causing prices to rise. Most people early in their careers do not have $100,000 for a downpayment on a house, forcing them to rent instead. Rental properties that generate income flows turn them into good long-term investments. However, investors in a pricey market like Denver must be savvy.
Where to Rental Real Estate Invest?
Over the last decade, cheap money has forced home prices up, making Denver one of the most expensive places in the nation to live. However, high interest rates have cooled the City’s sizzling-hot residential real estate market. Some investors shop for rentals in prime locations, while others look for value. DenCO, because of its knowledge of the Denver real estate market, helps buyers find lower-priced homes in up-and-coming neighborhoods. These neighborhoods may not be as picturesque, but they show tell-tale signs that they are on their way to becoming the next great place. Some of these signs include:
- Opening of new restaurants, chain stores, and groceries
- Families with young children moving in
- New employment opportunities
- Addition of public transportation in the area
- Spike in rent prices
Great finds are underpriced houses in moderately good shape close to parks, shopping, and entertainment. Fixer-uppers work if bought at a discount, allowing buyers to cover all repair and upgrade costs. These neighborhoods are a great place for first time home buyers as well.
Wealth Generation
Rental investors’ best friend is the 30-year fixed mortgage because it sets financing costs over the life of the investment. Over time, rents increase, allowing owners to cover their insurance, tax, and maintenance costs. Properties netting $100 to $200 monthly can become valuable long-term assets and create wealth.
Professional Property Management
Effective property management protects real estate assets and helps ensure steady rental income flows. Experienced or new rental real estate investors considering putting their rentals under professional management, please consider DenCO. We have been in business since 1999 and manage 175 rentals in the DU, Washington Park, and other Denver neighborhoods. Please call 303-722-9688 or fill out this form on the contact page.
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