Skyler MooreThe Denver real estate market has several attractive areas for investment property depending on an investor’s preferences. The Denver metro area has several trendy neighborhoods going through drastic transformations. The highlands area for example has 100 year old properties undergoing major renovations. In some cases properties are torn down to accommodate new modern buildings and town home developments. This is also happening in areas like Sloan’s lake that use to be considered a rougher area of town.
The transformation of these properties allow new home owner’s to live in historic or mature areas of town, while also having quick access to downtown Denver and all of the amenities it has to offer.
These neighborhood transformations are very gradual, but offer a unique opportunity to long term real estate investors. The number of available lots in these neighborhoods for new building is very limited. On the other hand, the number is abundant of older homes that require attention and maintenance that can be picked up at distressed prices, well below replacement cost. Long-term investors are purchasing the older homes, holding them as cash flow rentals with the expectation of appreciation in the future due to a limited supply and growing demand.
Other real estate investors do not foresee this as a solid strategy and prefer to own newer built homes at historically low prices. Suburban areas such as Green Valley Ranch, Parkfield and Aurora offer investment property that is 2000 or newer built at prices below re-placement cost. Some real estate investors prefer this type of property because it is low in maintenance, appealing to the primary buyer for an exit strategy and is able to offer positive cash flow with a future for appreciation due to population growth and incoming businesses.
The best areas for Denver investment property depend on the strategy of the real estate investor and their future views of growth. For investors who feel there is a growing population that would like to live in downtown settings and mitigate transportation costs, they may want to consider investing in older areas in the path of re-development. For other investors who may not have the desire to own older real estate, but rather new low maintenance property, they should strong consider Suburban areas, or carefully chosen condos in the urban setting.