Is it better to flip Denver investment property or rent it rightnow? This is a question I get from investors often and the answer, forthe first time in a long time, is actually to rent. According to a studyby Campbell/Inside Mortgage Finance HousingPulse Tracking Survery, 50% of allinvestors that purchased an investment property in July decided to rent itinstead of flipping or reselling it. That is in contract to July of 2010when only 28% of investors rented their recent purchases.
So why are so many more investors renting out their investmentproperties? It only makes sense. First, interest rates are soincredibly low, I have investors getting investment loans for under 5% which isunheard of, which of course makes it much easier to cash flow a rentalproperty. Second, the rental market is insane in Denver right now withless than 2% vacancy among privately held rentals. I recently rented oneof my rentals to the first person that contacted me for $350 more per month thanI was receiving before.
And finally, it just makes good financial sense. The age oldadage is buy low, sell high. Investors are scooping up income propertiesat the bottom, can rent them out and cash flow them until the market recoversand sell at a major premium. What about this doesn't make sense? Ifyou have ever considered getting into the investment property world, now is thetime. Give me a call and we can discuss, it is much easier than you couldever imagine.
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