Real Estate investors looking for cash flow and appreciation are flocking to Colorado to build rental portfolios. The Centennial State is a current favorite of real estate investors due to many factors including a strong and stable economy, a growing and highly educated population and beautiful scenic markets perfect for vacation rentals. Easy Street Capital is proud to be a leading provider of rental property loans for real estate investors looking to build rental portfolios in Colorado!
Types of Loans for Colorado Real Estate Investors
When it comes to real estate investing in Colorado there are many markets and types of rental property loans to choose from. With the frequent snowfall and rugged elements, there are good properties in need of renovations. For investors adept at rehabbing properties, hard money renovation loans are a perfect choice! These rental loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Method by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no rehab work. Move-in ready single family homes and fully furnished vacation rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for a long time. If historical patterns continue, rents and appreciation increase steadily each year. But debt costs stay the same for fixed-rate 30-year loans. This means cash flow should increase every year of ownership for properties financed by a DSCR rental loan.
Colorado: Landlord-Friendly State
With is business-friendly laws and regulations, Colorado is a landlord-friendly state. Owners of rental properties, such as typical DSCR Loan borrower, are secure investing in the state. Colorado does not have any form of rent control laws that apply state-wide. This means rental property owners are free to set rents at whatever level the market will bear. This can be an advantage for landlords who are looking to maximize their profits. Colorado has relatively efficient and straightforward eviction procedures in place, allowing landlords to regain possession of their rental properties in a timely manner. The state provides clear guidelines for serving eviction notices and handling eviction lawsuits. Additionally, Colorado allows landlords to include various provisions in their lease agreements, such as pet policies, late fees, and rules regarding the use of common areas. This flexibility allows landlords to establish clear expectations and rules for their rental properties.
Where To Invest In Real Estate In Colorado
Colorado is also a favorite market for real estate investors because of its diverse market options. There are lots of varying markets that offer great potential for each type of real estate investor. Denver is the capital and largest city in the state. Colorado Springs is the state’s second largest city with a growing population and thriving economy. Boulder is known for its natural beauty and home to the state’s flagship university, University of Colorado. Fort Collins, located north of Denver, has a diverse economy and Colorado State University. Breckenridge is a vacation mountain town known for its ski resorts and mountain landscapes, perfect for vacation rental investors.
Denver
Denver is the largest city in the state, with a population of over 700,000 people. The Denver metropolitan area, known as the Mile High City, is home to approximately 3 million residents. With a diverse and thriving economy, Denver has a strong presence in industries such as finance, technology, and healthcare. The city boasts several Fortune 500 companies, including DaVita, Arrow Electronics, and Newmont Mining. These companies contribute to a stable employment base for renters. Denver is also home to multiple universities including University of Denver. These attract a large number of students and young professionals in need of rental properties.
Denver’s robust economy and diverse population make it an attractive market for real estate investors. The city’s steady job growth and population increase contribute to a consistent demand for rental properties, spanning long-term leases, medium-term rentals, and short-term rentals. Furthermore, Denver’s thriving tourism industry is a major draw, with iconic attractions like the Denver Art Museum, Red Rocks Park and Amphitheatre, and the Denver Zoo. The city’s vibrant cultural scene, and professional sports teams such as the Denver Broncos and the Colorado Rockies create a robust market for short-term rentals.
In summary, Denver’s strong economy, diverse attractions, and growing population make it an excellent market for real estate investors interested in single-family and multifamily properties. The city’s dynamic environment offers numerous opportunities for rental property investments and the potential for steady returns.
Colorado Springs
Colorado Springs is a vibrant city located in the central part of the state, with a population of over 465,000 people. It is known for its picturesque landscapes and outdoor recreation opportunities, Colorado Springs is a popular destination for nature enthusiasts and adventure seekers. The city is surrounded by stunning natural landmarks, including the iconic Pikes Peak and Garden of the Gods. Beyond its natural beauty, Colorado Springs has a diverse economy. Industries such as defense, technology, and tourism driving its growth.
Real estate investors can find a wide range of investment opportunities in Colorado Springs. The city offers a mix of affordable housing options, with the median sales price for a single-family home reported at $425,000 in December 2023, according to Redfin. Additionally, the rental market in Colorado Springs is strong, with a growing demand for both long-term and short-term rentals. The city’s booming tourism industry, combined with its large military presence and renowned educational institutions like the United States Air Force Academy, create a consistent need for rental properties.
Colorado Springs is not only a popular tourist destination but also a hub for cultural attractions and events. The city is home to the Colorado Springs Fine Arts Center, the U.S. Olympic & Paralympic Training Center, and the Colorado Springs Philharmonic, providing residents and visitors with diverse cultural experiences. Annual events such as the Colorado Springs Balloon Classic and the Pikes Peak International Hill Climb draw in crowds and offer opportunities for short-term rental income.
With its strategic location near the Rocky Mountains and easy access to outdoor activities such as hiking, biking, and skiing, Colorado Springs attracts individuals and families looking for an active lifestyle. The city’s strong job market, fueled by the presence of major employers like Lockheed Martin and the technology industry, contributes to a steady influx of new residents and a stable real estate market.
Overall, Colorado Springs’ natural beauty, diverse economy, and strong rental market make it an attractive destination for real estate investors. The city’s combination of affordable housing options, cultural attractions, and outdoor recreation opportunities position it as a promising market for those looking to invest in the Colorado real estate market.
Boulder
Boulder is home to the University of Colorado, the state’s flagship college. But it’s more than just a college town. With a population of over 107,000, Boulder is a vibrant city known for its natural beauty and cultural offerings. The city boasts several cultural attractions. These include the Boulder Museum of Contemporary Art and the Colorado Chautauqua, which hosts a variety of events and performances throughout the year.
Boulder presents excellent opportunities for real estate investors specializing in niche strategies like short-term rentals or student housing. The University of Colorado, home of the “Buffaloes,” attracts a large student population, creating a steady demand for rental properties. With proper selection and location near campus, investment properties aimed at students can yield attractive returns, surpassing those of traditional long-term rentals.
The city of Boulder also appeals to short-term rental investors looking to benefit from specific events that draw visitors. The University of Colorado Buffaloes’ athletic events, particularly basketball games, attract numerous visitors. Additionally, Boulder hosts various events like the Boulder International Film Festival, the Boulder Creek Festival, and the Colorado Shakespeare Festival. These events contribute to year-round demand for short-term rentals, extending beyond the realm of sports.
Overall, Boulder’s diverse attractions, stunning natural surroundings, and growing population make it an enticing market for real estate investors. Whether targeting student housing or short-term rentals, the city’s cultural vibrancy and strong demand create favorable conditions for successful investments.
Fort Collins
Fort Collins, Colorado is located in the northern part of the state and has a population of over 170,000 people, making it the fourth-largest city in Colorado. The city boasts a diversified economy. Leading industries include manufacturing, technology, and education.
Real estate investors can find promising investment opportunities in Fort Collins. The city offers a range of affordable options, with the median sales price for a single-family home in December 2023 reported at $524,828 by Redfin. Furthermore, Fort Collins has a strong rental market, with the average market rent in February 2024 reaching $1,985 per month according to Zillow. Fort Collins remains an enticing prospect for real estate investors, offering affordable rental opportunities in a market known for its resilience and potential for solid returns.
Fort Collins also offers various cultural attractions and amenities. The city is home to the Fort Collins Museum of Discovery and the Lincoln Center for the Performing Arts. This provides residents and visitors with opportunities for cultural enrichment. Fort Collins is known for its craft brewery scene, with numerous breweries and taprooms that draw in tourists and locals.
With its scenic location near the foothills of the Rocky Mountains and its close proximity to outdoor recreational areas such as Horsetooth Reservoir and Poudre Canyon, Fort Collins is also a desirable destination for nature enthusiasts. This creates additional opportunities for short-term rentals, particularly during peak tourism seasons when visitors come to explore the region’s natural beauty.
Overall, Fort Collins’ diverse economy, cultural attractions, and proximity to outdoor recreational opportunities make it an appealing market for real estate investors. The city’s combination of affordable housing options, strong rental demand, and attractive amenities make it an ideal location to consider for real estate investment.
Breckenridge
Nestled in the heart of the Rocky Mountains, Breckenridge, is a charming town renowned for its beauty and world-class skiing. The town’s historic downtown area exudes a vibrant atmosphere with its array of shops, art galleries, and theaters. Breckenridge is a popular destination for outdoor enthusiasts, offering a plethora of activities such as skiing, hiking, and mountain biking.
The unique blend of natural beauty, outdoor recreation, and cultural charm makes Breckenridge an ideal location for short-term rental investors. Visitors flock from all over the country to experience the town’s renowned ski resorts and charming mountain ambiance. Rental rates in Breckenridge remain robust throughout the year. Peak seasons are during the winter months when skiers and snowboarders descend upon the slopes. The town also hosts various events and festival. These include the Breckenridge Music Festival and the Ullr Fest, attracting more visitors and generating additional rental income.
According to data from AirDNA, Breckenridge continues to shine as a lucrative market for short-term rental investors, with an average revenue of $102,000 per year as of January 2024. This figure showcases the robust demand and earning potential within the market. Moreover, the average occupancy rate stands at a promising 73%. While Breckenridge is often associated with its bustling ski season, projections indicate a steady stream of rental income even during the summer months. Properties in Breckenridge are in high demand year-round, providing investors with a reliable source of cash flow. Innovative financing solutions such as DSCR loans from forward-thinking lenders like Easy Street Capital offer tailored options that consider AirDNA projections for income qualification.
Overall, Breckenridge’s natural beauty, thriving outdoor recreation scene, and year-round appeal make it an attractive market for real estate investors specializing in short-term rentals. The town’s popularity as a premier ski destination ensures a demand for rental properties. This provides a lucrative opportunity for investors seeking to capitalize on Breckenridge’s charm and allure.
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Ready to invest in real estate in Colorado? Easy Street Capital is top lender for rental loans in Colorado, both hard money rehabs and long-term rental properties.
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