Investing in real estate in Denver has become increasingly popular in recent years. With rising housing prices, many people are turning to rental properties as an alternative way to enter the real estate market. Reddit is home to many online communities discussing real estate investing, including in the Denver area. By analyzing the discussions on Reddit, we can gain valuable insights into successful rental property investing strategies in Denver.
Join the Denver real estate investing Reddit community
The Reddit community /r/DenverRealEstate is specifically focused on discussing real estate investing in Denver. With over 5,000 members, it is an active community sharing tips, experiences, and questions about becoming a landlord in Denver. Reading through the forum threads provides a wealth of knowledge from other investors’ successes and mistakes when buying rental properties in the area. It’s a great idea to join the community when starting your research.
Look for more affordable neighborhoods with cash flow potential
Denver has experienced one of the hottest housing markets in recent years, with home prices rising rapidly. This can make it challenging for rental investments to cash flow, as property prices and rents do not always align. Through Reddit discussions, popular affordable neighborhoods for investment properties with cash flow potential often include Southwest, Westwood, Montbello and Green Valley Ranch. Investors recommend looking for more dated homes in these areas that can be purchased under market value.
Vet potential tenants thoroughly
With Colorado’s tenant-friendly laws, screening tenants is crucial for successful rental property investing in Denver. Reddit investors strongly suggest thoroughly vetting applicants, including credit checks, background checks, income verification and rental history. Taking the time upfront to find quality, reliable tenants will pay off in the long run through consistent on-time rent payments and less turnover.
Consider hiring a property manager
Out-of-state investors or those without time to self-manage often enlist the help of a property management company in Denver. While it eats into profits through fees, property managers handle all aspects of overseeing the investment from finding tenants, collecting rent and maintenance. Many Denver real estate investors on Reddit recommend property managers for their expertise navigating Denver’s rental market and regulations.
Plan for maintenance costs and repairs
Maintenance and unexpected repairs are part of owning an investment property. Denver real estate investors on Reddit recommend planning ahead for these costs by setting aside 15-20% of rental income each month. Hot topics include budgeting for roof replacements, furnace/AC repairs, cracked foundations and sewer scope repairs in older homes.
The Reddit community provides an invaluable crowdsourced knowledge base for investing in Denver real estate. By joining forums like /r/DenverRealEstate, reading discussions and asking questions, investors can learn insider tips to navigate the local rental market successfully.