How to Be A Successful Property Investor in The Denver Area
by Evolve
When done right, property investing in Denver has the potential to earn you high returns. If you are looking to invest in property in Denver, you’re in the right place. Please get in touch with us immediately.
Today, we’ll share with you some few tips and tricks on how to be a successful property investor in the Denver area.
1. Do your research.
As with any other investment, extensive research in Denver’s real estate market is key. The research will allow you to get all the necessary information in the palm of your hands.
Your research should cover area demographics, capital growth, rental yields, and prices. What’s great about it is that you can get all this information on the web.
2. Set up an investment team.
Every successful real estate investor requires a team of experts besides them. Real estate experts will help you learn about the mechanics of real estate investing whether it is for long-term hold properties or for a fix and flip opportunities.
Newbies in real estate investing often turn to investment clubs for expertise. While such clubs may be helpful, they oftentimes tend to sell you far more than you need.
The proper way to invest in real estate is to have a limited number of specialists such as:
• An attorney – A real estate attorney will help you when it comes to writing up a lease or rental agreement.
• CPA/Accountant – This numbers person will help you when it comes to matters regarding taxation.
• Lender – You need one who is experienced, responsive and well-reviewed. One that is good at making investor loans, both for hard money lending and long-term is good.
• Handyman/Contractor – You will need someone experienced in rental properties, and fix and flip repairs.
• Realtor – You need one who is knowledgeable in the investment arena and the market you are interested in.
• Property Manager – If you own this property, an experienced property manager can help you manage your property as well as tenant relations and regulations.
3. Keep your property occupied.
High vacancy levels can kill your Denver property’s cash flow. Ideally, look for a property that is already occupied. Or, try to line up your closing date appropriately. The prime time for renting is between March and July.
By doing this, you are likely to get the best tenant pool and consequently charge top rent.
4. Buy a rent-ready property.
Buying a rent-ready property can help you recoup your costs as soon as possible. On the contrary, a fixer-upper needs to be fixed up. By the time you need to repair it may cost you several months.
You need to wait almost a similar period to find a tenant. During all these time, your property is not generating any income for you.
Figure out if it’s worth it, or if you will be better off opting for a rent-ready home.
5. Choose the right location.
When investing in real estate, location is key. Newbies investing in real estate often base their decisions on the property itself instead of the location. That’s a mistake!
Location produces desirability, desirability produces demand, and demand increases the prices of properties.
To determine if you’ve found a great location, here are some things to consider:
• Access to public transit and/or freeways
• Water access and views
• Convenient access to popular places, shops, and restaurants
• Good schools
• A safe neighborhood
The following are good Denver neighborhoods to consider:
• Indian Creek– Indian Creek is the place to be when you want to get away from it all. It’s balanced between warehouses and residential structures.
• Hampden South– A quiet suburban area, it’s appreciated for easy parking and a slower pace of life. Hampden South has seen a massive 33% increase in home prices, yet people are still flocking to it.
• Mar Lee– This area has seen an influx of new residents perhaps because of its central location, a slew of dining options, and great parks. Over the past year, home prices have increased by 20%.
• Hilltop– This neighborhood is known for peace, quiet, and remarkably low crime rates. Hilltop is also established and affluent and known for its gorgeous green spaces.
• Congress Park-Congress Park is an excellent place for families and rising professionals.
A great location will attract the best tenants and make up for other shortfalls.
With these tips, you will be able to maximize your chances of becoming a successful property investor in Denver.
