Home Buying in Denver>Question Details

William, Home Seller in 15211

Should I buy a 100-120K property to eventually rent in Denver? If so, where is the best area to buy?

Asked by William, 15211 Mon Jul 25, 2011

Hi all! I am relocating to the Denver area. My home in PA is taking a while to sell. Since it is still on the market, and my equity is tied up, I want to wait to buy my dream home in CO. I don't want to rent my home in PA, but I have heard the rental market in Denver is good. Obviously Plan A is to sell the house in PA, but Plan B would be to buy an inexpensive property in Denver, possibly fix it up while living in it for a year or two, and then rent it until it looks like the market is right to sell. Does this sound like a good plan, or a big mistake (i.e. should I just rent)? If its a decent idea, where should I be looking? Thanks for your ideas!

Help the community by answering this question:


Hello William,
You have some sensible plans you are contemplating. The Plan B scenario is not too different from what some investors do. I have blogged about renovation - who should do it, the pitfalls, tips and strategies.

You seem to be on the right track. In the right neighborhood, you can do well. I recommend working with a local real estate agent who knows the market. I will also sound a word of caution about doing renovation work. Unless it can pass for professional work, you are taking your chances. Buyers can spot substandard work a mile away.

If you are contemplating the Broomfield and Erie areas, let me know.

PML of Longmont, CO
720 810 0683
0 votes Thank Flag Link Tue Jul 26, 2011
You are correct about the rental Market in Denver, very strong. If you but a home here in Denver for 100k your options are very diverse. I have investment properties and have done well. What is bringing you to Denver would help me answer your questions better. Location Etc One idea i have is a lease option.. Where are you from in Pa? I was born and raised in Pittsburgh. Contact me we can talk some more.

0 votes Thank Flag Link Mon Jul 25, 2011
Best of luck in selling your home in Pennsylvania. I know plan A is what you want. I just got back from a lunch meeting and I'm amazed at how many and how fast the responses came.

What is the status of the current rental market in Denver, CO. It is great if you are an owner, and very lousy if you are a renter. I respectfully disagree with an earlier comment that 5% is where the market gets tight. Historically that figure is 6% (I'm happy to provide graphs and documentation). Under 6 rents rise above 6 they fall. Anything under 5% and they'll really start to rise. I believe the vacancy for single family is around 1-2%. I'll know exactly soon.

Gordon Von Stroh, http://www.daniels.du.edu/facultyteachingresearch/directory/… is the man for the source of Denver rental information. The 4.8 percent vacancy others quoted was for apartments, not single family homes. He publishes two books of data each quarter one for multifamily and the other for single family residences. He should be releasing the data for single family for the most recent quarter within the next week or two. Very few real estate agents have access to this data, but I happily share it with all of my clients.

Your idea of buying cheap, living, and then fixing is an excellent idea. You might even decide you want to keep it after it is done. Being able to lock in at todays low interest rates makes incredible sense. It is what I would do in your situation, even if I had to step down into a condo.

As far as areas go. There are a lot of great areas to live in Denver. There are a lot of great areas for cash flow on rental properties. There are very few that overlap. If you are relocating for a job I would find the best area for cash flow/appreciation that is closest to where you are going to work. It is a pretty big city 2.2 million in the metro area.

Whoops almost forgot. I'd really check out http://www.homepath.com for your situation. I've acquired 28 doors since 2008 and have no more cash/credit to invest or I'd be focused on these right now.

If you would like to get a daily email of HUD homes, homepath homes, or the rental pricing and vacancy data please shoot me an email to trulia@propertiescolorado.com

Best of luck.
0 votes Thank Flag Link Mon Jul 25, 2011
Hello William,

I think your Plan B sounds viable for our market if Plan A doesn't come together.
I am a real estate agent and have purchased several properties as rentals. I have consistently had them rented in short order and keep them occupied. There are several areas in Denver that are good rental markets. It depends on where YOU would like to live and key features that are important to you.
There are some good to very good buys on bank owned properties. These would potentially be the best bet for you since you are willing to put some work into fixing it up.
Feel free to contact me with questions or comments.
All the best to you.

Romaine Tacznosky
Brokers Guild Classic
0 votes Thank Flag Link Mon Jul 25, 2011
Yes, it's a good, viable plan. At that price you'll be linited to a condo or townhome though. Best rental market is Aurora which is also the least expensive. Second choice would be Northglenn or Thornton.
Best of luck to you!

Tim Klein
Metro Brokers - The Realty Werks
0 votes Thank Flag Link Mon Jul 25, 2011
Hi William,
Are you any relation to the Sylvania of Penn?? My husband is from Philly and we go there often.
The market to buy in Denver is is great right now!The promotions offered by banks and mortgage companies are varied and always expanding. Would you be using cash or financing? There is a great 203k Loan availabe to qualified buyers...You pick a home 20-50k less and use 35k only twice in a year to make the home improvements,appliances,carpet,paint...as if it was going to be yours to live in as new. The interest is only 1/8-1/4% higher than standared loan and it is all rolled into the loan. Being in PA is the hard part. It's always suggested you live within driving distance of the home...in case of emergency. PA is not in driving distance. if I understood you correctly, you are looking to move to CO at some point?Sounds like you might be coming to live here first? Anyway, Yes! it is a great time to buy right now but properties are still being held by banks from the foreclosure moratorium put in place by Obama and are a little low in inventory for what can be bought. they are under the guise of Short Sale...The banks are in charge of the sale, even though the sales person is an "individual". These can take longer but are generally well worth the wait! Let me know how much to spend while looking and if you are interested in home,townhome,condo. Would love to help.
Good luck, call with questions or email
cstarrrealtor@hotmail.com (303)618-8089
Web Reference: http://cstarrrealtor.com
0 votes Thank Flag Link Mon Jul 25, 2011
Hi William,

I just purchased a bank-owned home in the east Colfax Corridor, just south of Stapleton, which is a highly desirable neighborhood. I'm in the process of fixing it up and plan to put it on the rental market in less than six weeks. This is a great area for you to look in - it's close to the city, but still in transition, so hopefully will appreciate as the market turns.

There are some great financing options out there for home rehabs. Let me know if I can help point you in the right direction.

Warmest Regards,
Sara Wilhelm
Live Urban Real Estate
Web Reference: http://www.sarajwilhelm.com
0 votes Thank Flag Link Mon Jul 25, 2011
Hi William:
Yes, as restated by those who answered and your own research, the rental market in the Denver area is very good with low vacancy rates, high demand, and low interest rates. However, as to where to purchase, that is a very subjective topic. At Your Castle Real Estate, we compile comprehensive market trends and data for the metro Denver area. But that should be only a small part of your decision. You need to look at: what you can afford and qualify for, your risk comfort level from a financial stand point, your comfort level from a location standpoint, your short-term and long term goals, whether or not you want to self-manage or hire a property manager, etc. There is no one-stop/cookie cutter answer that works for everyone. I'm happy to help you put together a plan that works for you. Serena, 303-956-7940, Serena@YourCastle.org. Check out our website at http://www.YourCastle.org.
0 votes Thank Flag Link Mon Jul 25, 2011
Hi William,

As noted by the other broker responses you have received, the rental market in Denver is good. If your decision is to purchase a property for $100k-$120K...live in it while you do some renovation...and then sell the property sometime in the future...you might want to look into whether you could qualify for an FHA loan in order to purchase a HUD or Freddie Mac home as an owner occupant. I have been working with an investor looking in the sub-$150k price range and it seems like most of the decent homes in that price range are either HUD or Freddie Mac foreclosures that end up being purchased by owner occupants.

I would recommend talking with a local (Denver) lender to confirm what you can do and then base your decision on that information. I can highly recommend Alan Wyngarden with Megastar Financial... 303-905-1420..alan@megastarfinancial.com They have the ability to fund their loans in-house and will provide excellent service. If you decide to purchase, please keep me in mind. I would appreciate the opportunity to assist you i finding the right property as your new home here in Denver.

Bob Durack - Broker Associate
Red Chair Realty Advisors
(O) 720-897-8879
(M) 303-520-3857
0 votes Thank Flag Link Mon Jul 25, 2011
I’m sure you’ve heard with real estate it is location, location, location. See my website with videos that highlights some of the trendy neighborhoods in Denver. If you’re wondering what rents run in various areas, check out rentometer.com (which I like). I’ve got 3 rentals and it pegged the rents for me nicely. Certainly, it’d be a pleasure to assist you in a home search. Cordially -
Esther Harnsberger, Broker Associate, Keller Williams Realty Success, LLC
0 votes Thank Flag Link Mon Jul 25, 2011
You will find the Denver real estate market to be one of the strongest markets in the nation. This also goes for the rental market...the vacany rate is at 4.8%, anything under 5% is considered a tight market. This going to be the situation as more people get into the renatl market and much like yourself, Denver continues to welcome more residents.

You definitely should look in the Denver city limits...inner city will always provide you with the higest appreciation and the higher rents. I can be more specific if you would like to discuss this further.

Douglas D. Kerbs
Fuller Sotheby's International Realty
0 votes Thank Flag Link Mon Jul 25, 2011
The rental market in Denver is really strong. I would recommend area's in Central Denver, near Highlands, Sloans Lake. But 100-120k will most likely only afford a condo. Or check out the area just south of there where the new light rail is going in, which is more affordable If you want to keep in that price range Aurora might also be another good location for a rental. Let me know if I can help. Laurie King http://www.DenverRealEstateKing.com
0 votes Thank Flag Link Mon Jul 25, 2011
Its definitely a great time to buy a home in the price range you are looking in. Listings are still fairly plentiful. Yes, the rental market is crazy here in Denver .. at the moment. None of us have a crystal ball as to what will happen, but due to volume of people losing theirs homes, people relocating here, and people who just don't want to buy, the rental market should stay popular ??

Areas are very subjective and none of us agents can guide you into a certain area. However, driving around a neighborhood will give you a good idea of what they are like.

The decision is down to you, but we are all hoping that the market will have picked up in the next couple of years. And especially as you are looking to fix up ... there are still plenty of investors looking for fix and flips so the market is there.

Here are properties requiring fix up


and check the link below for Bank Owned properties under $100,000

Contact me anytime if I can be of assistance

Julie Reddington
720 226 4168
0 votes Thank Flag Link Mon Jul 25, 2011
William, I have rented every home I've ever bought & lived in. I never sell real estate. I now have 2 rental properties in Denver and they are doing very well. I have several clients who have done the same. And you are correct, the rental market in Denver is crazy tight. BTW, that will make finding a place to rent difficult. Rents are rising with the vacancy rate at historical lows. There are many stories about rental properties getting 30+ calls Day 1 from prospective tenants. As for where to look, there are many answers to that question. Would be glad to help as I work with mostly rental property investors.
Web Reference: http://www.jonrroberts.com
0 votes Thank Flag Link Mon Jul 25, 2011
I and others believe the rental market in Denver is strong. I just turned over three rentals this month in hours not days. Please check out my trulia blog http://www.trulia.com/blog/jaryd_takushi/ and others which have stats of the rental market here. I wish you well on your listing in PA.

0 votes Thank Flag Link Mon Jul 25, 2011
I would recommend the southeast Denver corridor. In your price range I think the best bang for your buck is Indian Hills subdivision. Pretty safe and sound.
Call me at 303-332-6666 and I could give you further advise.
Thank you,
Ozzie Preiss
Brokers Guild Classic Realestate
0 votes Thank Flag Link Mon Jul 25, 2011
Dear William,

Your idea to buy, fix and live in it until the market recovers and sell it at that point is a great idea. It is an idea that many investors are using during this time.

Call me at303-856-8980
as I specialize in investment properties and can help you find a great deal.

My services to you are free of charge!


Ethan Besser

Ethan Besser, CDPE
Certified Distressed Property Expert
Broker Associate
Keller Williams - DTC
Cell: 303.856.8980
Fax: 303.539.4809
0 votes Thank Flag Link Mon Jul 25, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer