Finding the right property for the right price and renting it out could be a good investment. Keeping the income on the property higher than the taxes, mortgage, and insurance and also keeping money in reserve for repairs is the best way to secure this investment. Property trends in the area have shown housing value to rise steadily from year to year. Of course there is no guarantee that values will not drop, the market goes up and down based on supply and demand, but if the previous years continued increases in property value keep on track, this would be a great investment.
The median monthly gross residential rent in Denver, CO (the Denver-Aurora-Broomfield metro area) was $1,078 in 2014 according to the Census ACS survey.1 Average gross rent in Denver was $1,116 in 2014. The median rent more accurately depicts rental rates in the middle of the distribution of rents and is thus preferred in the analysis below. 2015 Denver median and average rent data will be released in September of 2016.
Real Gross Rent in Denver Colorado (2014 dollars)2
20141 Year Change3 Year Change
US Median Gross Rent$934+3.43%+4.83%
Colorado Median Gross Rent$1,020+5.26%+10.75%
Denver, CO Median Gross Rent$1,078+8.34%+14.56%
Denver, CO Real Gross Rent Trends
At $1,078, real median gross rent in Denver was at its highest level in 2014 since the series began in 2005. At $1,116, real average gross rent in Denver was at its highest level in 2014 since the series began in 2005.
Renovating a property for a profit is also an investment opportunity. I am going to stress that THIS IS NOT FOR EVERYONE. Depending on the property condition and property values in the area, profit and loss could both happen. It it very important to be working with a real estate professional when considering a renovation property. Sometimes the cost to fix the property and the value of the finished product might not add up to a profit, and sometimes it will.