Does buying an investment property make sense?
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It’s a question worth asking if you live in Denver, one of the strongest real estate markets in the country.
Investing in real estate remains one of the most compelling strategies for building a nest egg. The trick is to buy smart and not let go.
We put our heads together to pick five investment strategies that ring true in any market.
1. Detach from the property—you’re not living there
This isn’t a home you’re going to live in, at least not right away. Evaluate the home based on its income-generating potential.
2. Buy, then hang on to it
We’ve seen potential buyers sit on the sidelines, waiting for the opportunity to buy low, thinking they’ll sell high, and never get in.
Buy when you’re ready to buy, and hang on to it for years.
3. Decide who will manage the property
Do you plan to screen the tenants and handle repairs, or are you going to hire a property manager? Managing the property takes time—and property managers cost money.
4. Buy a property with positive cash flow
Avoid properties that cause you to lose money every month. As long as you’re running in the black, you’re less likely to be hurt by market dips or stalling home prices.
5. Think location, location, location
Invest in a neighborhood where people want to live. If you’re unsure about a location in metro Denver, we can help you assess its desirability.