Types of Investment Properties in Denver, CO - A Guide for Real Estate Investors
Denver, Colorado is a popular destination for real estate investment due to its strong economy, growing population, and attractive quality of life. If you're considering investing in Denver real estate, it's important to know the different types of investment properties that are available. In this blog post, we will explore the popular types of investment properties found in Denver, Colorado.
Single Family Homes for Long Term or Mid Term Renting
Single-family homes are a popular type of investment property in Denver. These homes can be rented out on a long-term or mid-term basis. Long-term rentals are typically leased for a year or more, while mid-term rentals are typically leased for 3 to 6 months. Mid term typically are more profitable if you are willing to deal with more turnover and maintaining furniture.
When investing in a single-family home, it's important to consider the location, size, and condition of the property. Denver has a diverse range of neighborhoods, each with its own character and rental market. Make sure to research the rental market in your target neighborhood to ensure you're making a smart investment.
Multi-Family Units for Long Term or Mid Term Renting
Multi-family units, such as duplexes, triplexes, and apartment buildings, are another popular type of investment property in Denver. These properties are typically rented out on a long-term or mid-term basis, and can offer higher rental income than single-family homes.
Investing in a multi-family property requires careful research and due diligence. It's important to evaluate the condition of the property, the rental market in the area, and the potential for future growth and appreciation.
Airbnb Part of Your Home (Primary Residence)
If you own a home in Denver and are looking for a way to generate extra income, you may want to consider renting out your home on Airbnb. This is a popular option for homeowners who have a spare room or guest suite that they're not using.
Keep in mind that in Denver, you can only rent out your primary residence on Airbnb. You can't rent out a second home that you own. Before renting out a room on Airbnb, make sure to research the local regulations and obtain any necessary permits. Each County has special rules in regard to Airbnb.There is a-lot to unpack with Airbnb so I will be doing so in a separate blog post.
Fix and Flips
Fix and flips are a popular investment strategy for those who are looking to buy, renovate, and sell a property for a profit. In Denver, there are many opportunities for fix and flip investors, as the city has a strong real estate market and a growing demand for renovated homes.
When investing in a fix and flip property, it's important to have a solid understanding of the local real estate market, as well as the costs and time involved in renovating the property. Make sure to work with a team of professionals, including contractors and real estate agents, to help you make a smart investment.
ADUs
Accessory Dwelling Units (ADUs) are small, self-contained living spaces that are built on the same lot as a single-family home. ADUs are a popular investment strategy in Denver, as they can be rented out on a long-term or short-term basis, providing an additional source of income for the homeowner.
Investing in an ADU requires careful research and planning, as there are zoning regulations and building codes that must be followed. Denver is trying to streamline the process so expect to see more ADU’s in the future. With any ADU project Make sure to work with an experienced architect and contractor to help you design and build a high-quality ADU that meets all local regulations.
Rent by the room
Another type of investment strategy that is gaining popularity in Denver is the rent by the room strategy. This involves renting out individual rooms in a house or apartment on a per-room basis, rather than renting out the entire property to a single tenant.
Renting by the room can be a smart investment strategy for landlords who want to maximize their rental income, as they can charge a higher total rent than they would for a single tenant. Additionally, renting by the room can be appealing to tenants who are looking for a more affordable housing option, as they only have to pay for the space they're actually using.
However, there are some important considerations to keep in mind when renting by the room. For example, you will need to be prepared to manage multiple tenants and handle any conflicts that arise. Additionally, you will need to ensure that your property meets all local zoning and building codes for renting out individual rooms.
Denver, Colorado offers a wide range of investment properties for those looking to build their portfolio in real estate. Whether you're interested in long-term rentals, fix and flips, or ADUs, there are opportunities to generate income and build wealth for anyone in this vibrant and growing city. As with any investment, it's important to do your due diligence and work with a team of professionals to ensure you're making a smart investment decision.