Investors who are looking for new markets should consider a region that might not be too high on the radar: Colorado Springs. Whether you’re buying your first investment property or you’re adding to an already growing portfolio, Colorado Springs offers a lot of potential.
Today, we’re talking about why we love managing properties in Colorado Springs market, and why it makes sense for investors at every level to buy an investment home.
Colorado Springs Investment Properties are Affordable
Denver housing prices have skyrocketed in recent years, and in Colorado Springs, you can get a better property for less money. Property values are on the rise and your investment will continue to appreciate. In fact, in neighborhoods close to the downtown area, average appreciation has been at or over 50 percent for the last five years. It’s easier to enter the market in this part of Colorado than in other metropolitan markets such as Denver. The two cities are only about an hour apart, so commuting from Colorado Springs to Denver is not terrible. You might find that you can attract well-qualified, highly paid tenants who work in Denver but want to live in Colorado Springs. The economy here is growing, and you’ll find stability and diversity.
Rental Values are Increasing
Another good reason to invest here is that you can count on increasing rents. Last year, they went up seven percent, and there’s no reason to believe they won’t continue to increase. The rental market is strong, and good tenants are looking for well-maintained homes. They’re willing to pay for what they want, and if you can provide an attractive place to live and a responsive approach to customer service, you’re going to be able to maximize the amount of rental income you receive. This trend in higher rents will contribute to your ROI and increase the chances that you’re able to earn positive cash flow.
Economic Growth and High Quality of Life
You won’t run out of tenants. People are moving to Colorado Springs for a variety of reasons, including the strong economy and the three universities that are in the area. Millennial populations are growing, and there’s also a large pool of professionals, entrepreneurs, and athletes. A new sports stadium is under construction, which will add jobs and increase economic productivity. The U.S. Olympic Training Center is also in the area, and the altitude and facilities make this city a perfect place to train.
In Colorado Springs, investors can enjoy profit and growth when they rent out properties to long term tenants and even short term tenants. Many landlords put their homes on sites like Airbnb, and they’re profitable because of the tourism industry and the transient renters who visit for several weeks or months. Long term tenants can also impact your ROI, especially when you screen well and rent to people who pay on time, follow your lease, and help you take care of your home.
We’d love to discuss specific neighborhoods and types of properties that make excellent investments in Colorado Springs. If you’re interested in learning more, please contact us at Muldoon Associates.