There are many different types of investment properties in Denver; from duplexes to condos to single-family houses, there is a wide variety of options in neighborhoods across the city. Before you buy, it’s important to narrow down the type of property you are looking for before you start your search. This will mean doing a lot of research about the type of project you are ready to undertake as well.
1: The “fix and flip.” This is when the property is gutted, remodeled, and modernized with new interior design elements. You’ll most likely need to add furnishings, fixtures, appliances and take time to improve or add exterior landscaping. In most cases, this is going to take a substantial amount of money and time before you sell the property. Remember, if you didn’t pay for the house in cash, you’re going to have to cover the mortgage while renovations are happening. This is almost always a risky idea unless you are experienced with these types of projects. Watching HGTV makes it seem like it’s as simple as buying a fixer-upper, knocking down a few walls, and voila you sell a gorgeous home at a profit. Those people are professionals and they’re on television.
2: Buying, deep cleaning and selling a property “as-is.” This is less-risk and less-reward. There are no home improvements being made, just cleaning. The benefits include limiting your financial exposure because hopefully, the property will be able to sell quickly. You should speak with a real estate professional who has experience finding listings that are perfect for this type of investment. There are still great areas in Denver that can be perfect for this type of investment.
3: Buying a rental property. This is essentially “buying, renting and holding,” a property. For example, buying a duplex, four-plex, or multiplex property and renting it out. They can be a great investment. There are plenty of these types of properties in Denver with varied locations serving the rental market. You can also buy a house or an apartment with the plan to hold onto it as a rental property. Becoming a landlord can be one of the best financial decisions you can do because of the chance of a good return on your investment. Just remember that you’re either going to have to manage the property yourself, or pay a company to manage it for a fee.
Regardless of which option is best for you, there are a ton of reasons to utilize real estate as an investment vehicle. Find a qualified agent who can help you find the perfect investment property.