Ethan, Both Buyer and Seller in Foster City, CA

Denver market

Asked by Ethan, Foster City, CA Sun May 18, 2008

Does anyone have advice on the Denver market. Is it possible to get a place with positive cash flow with with only 20% down?

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6
Absolutely! There are lots of pockets in the Denver metro area that are ripe for this kind of investment. Specifically in Aurora, you can pick up 2bed 2bath brick duplexes from $100K ready to rent. If you have money to put into fix-up the prices get even better. Each half will rent for $700 per month. That will leave you with room for improvements, property management, and cash in the bank to spare. You'll need to secure that 20% financing first, but there's lot's of inventory coming down the pipe in the next couple of months. I believe that the prices will only get better and the rental rates will go up with the REO inventory expanding in April.
0 votes Thank Flag Link Tue Mar 17, 2009
Hi Ethan! Greetings from a California Ex-pat (Mountain View).

Denver is a great market for rental property investing. I specialize in helping investors find solid rental hold properties in Northglenn, Westminster, Thornton and Arvada. All are Northern Denver suburbs.

Renters like these areas for the following reasons: quick commute to Denver (approx. 20-30 mins), larger homes (1800+sq. feet), nice neighborhoods. Also, there is strong rental demand in these areas, due in no small part to the sub-prime fallout. Many folks are former owners, now impacting the rental market.

Let me give you an example: we've help clients buy homes for $110k, invest $10k-15k in rehab, then have the properties re-appraised at $170k. These properties will rent for between $1250-1400/month. 20% down in these cases will equal a nice positive cash flow property that has a lot of rental appeal.

Regards,
rob
0 votes Thank Flag Link Mon Nov 10, 2008
I have had better luck with cash flowing a property in Grand Junction Colorado. Strong economy and HUGE pool of renters.
0 votes Thank Flag Link Mon May 19, 2008
Yes, it is certainly possible. There are some areas of town where the purchase price is fairly low, rehab costs will be minimal and the rental demand is high. I found 6 houses for an investor, closed in March, started rehab in April and are now renting. Cash flow will not be high, but it will be positive.
0 votes Thank Flag Link Mon May 19, 2008
I absolutely believe that it is very possible to do so. With the Denver rental market being where it is, and several very positive economic indicators, there are some very good potentials in the Denver market. I'm not sure exactly what you have in mind, but do have thoughts on several areas and price points. Feel free to give me a call, or visit my website, if you want any additional information.
Chuck Strauss
http://www.denverhomeguru.com
720-318-7598
CStrauss@kw.com
0 votes Thank Flag Link Mon May 19, 2008
Hi Ethan,

Absolutely. I've financed two condos over the last 2 months as rental properties and the investor rented out the properties quickly and is cash-flow positive. Purchases prices were $60,000 and $87,000. If you're looking for a good Realtor to help you with the purchases, call David Barr -- 720.394.2096. He has been the Realtor on both and is expert at finding great investment property options in Denver.

If you need assistance with financing, give me a call or e-mail me at ben@bythebrookemortgage.com or 720.280.0441.

Take care,

Ben Edgson
Mortgage Broker
By the Brooke Mortgage
720.280.0441
0 votes Thank Flag Link Sun May 18, 2008
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