Low Vacancies and High Rents:Time To Buy Denver Investment Properties?

In years past, most investors concentrated on the profits to be made on Denver Investment Properties by focusing on Denver Fix and Flip homes. The margins were there and the high number of available foreclosures combined with the rapidly appreciating real estate market made the fix and flip model work.

However, savvy investors have switched their focus over the past few years, and now successful investors are focusing on “Buy and Hold” Properties. While there are still a good number of Denver foreclosures available, many investors are taking advantage of the high rental rates caused by the declining vacancy rate.

The Colorado Division of Housing blog had a great post on this on Friday outlining some of the most important numbers. The current vacancy rates are at 2% and average rates have steadily climbed. The entire post is worth a read (linked above), but the most important graph is here:

Denver investment Properties

For the high number of home buyers whose homes have been added to the list of Denver foreclosures, they still need a place to live. With a foreclosure on their credit, they can’t buy a home so they are forced to rent. You can see this reflected in the chart with rental rates inversely proportionate to the foreclosure crisis numbers.

Keep in mind, most of these buyers will not be able to purchase a home for years after a foreclosure, so the renatal demand should remain strong.

If you would like to talk to our team about Denver Investment properties, Denver foreclosures or have any other questions about Denver Distressed Properties, you can reach us at 303-726-1874.

Also, while much more difficult to find, we are still helping clients with Denver fix and flip homes. We’re closing on a great successful fix and flip this month and have others in the process.




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