Is now a good time to invest in Denver Real Estate? I get the question a lot and the answer is YES! The rental market is even crazier than the Real Estate market if you can believe that with right around a 1% vacancy rate for rentals. Rental rates are the highest they have ever been and with these crazy low interest rates, you can cash flow a property in a manner that has never before been possible.
I've been investing in Real Estate for about 6 years now and since I bought my first duplex I've seen the monthly rents go up six hundred dollars a month. I've seen the largest increase in the past 3 years and expect when I rent it again next year I will be able to ask even more and it will rent the first day on the market once again.
To invest in Real Estate, you do need to have a sizable down payment, typcially 20%. If you can make this down payment work, then the cash flow options are pretty strong with a mid 4% interest rate available. When I bought my duplex I was at 6.5% for an investor rate so imagine how excited I am to refinance this month down to 4%. If you don't have that for a down payment, but own your home already, you could always rent out your current home and buy a new one to live in so that option exists too.
Below is a great duplex I just put on the market this week priced at $350,000. It is near Belmar, close to 6th Ave and the light rail station on Wadsworth and 13th so makes for an easy rental. One side is rented at $1,500 a month and the vacant side should rent for close to $1,700 a month. That's $3,200 a month in rent and with 20% down and a 4.5% interest rate, you would be looking at a monthly mortgage payment of $1,700. Factor in miscellaneous expenses and vacancy and you are looking at close to $1,000 a month in income!
And with rents likely to increase in the area, you can see why this makes a great investment and why so many people are wanting to get into the Denver market. If you are interested in investing in Real Estate and taking advantage of a market that is definitly on the upswing, let me know and we can talk further about it. For more information on this property, click here.
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