Most real estate investors are constantly on the lookout for successful locations for buying a rental property. Today, we will discuss one of the possible locations with the potential for making money in real estate. This is the Colorado Springs real estate market. In this blog, we will explore the Colorado Springs real estate market. Additionally, we will look at the best places for investing in Colorado Springs real estate. Last but not least, we will tell you how to find the best Colorado Springs investment properties. Does this sound intriguing? Keep on reading to find all the information you need.
#1 Colorado Springs Real Estate Market: An Overview
Colorado Springs is a city in Colorado. The city is famous for its nature and hiking parks. There are many natural sights which attract an enormous amount of tourists yearly. Besides tourism, the high-tech industry and the military contribute towards the growing economy in the city. Needless to say, Colorado Springs investment properties are suitable for each type of rental strategy. However, the optimal rental strategy and property type depend on the location of the investment, but more on this note later. What about the Colorado Springs real estate market?
The Colorado Springs real estate market shows an increase in home sales over the last year. However, along with that, property prices have increased as well. In fact, they have risen so high that they are the highest property prices the city has seen over the last decade. It is however interesting to note that the homes are selling faster than before. This probably means that real estate investors are not bothered by the price increase and still see the market as a great opportunity to be making money in real estate.
Nonetheless, it is expected that the market will slow down a little. This will supposedly balance the property prices. Thus, to buy investment property will not be as expensive. But where to invest in the Colorado Spring real estate market? To learn more about the subject, make sure to check out “The Market Is Hot for a Colorado Springs Investment Property.”
#2 Colorado Springs Real Estate Market: Where to Buy Investment Property
Investing in Colorado Springs real estate is no different than buying a rental property anywhere else in the world. This means that there are the same steps to follow and the same rules that apply if you want to be making money in real estate. As you probably already know, the location is of key importance in establishing the optimal rental strategy and the property type that would lead to higher chances of success. The same is valid for the Colorado Springs real estate market. For this particular reason, we will review the best places to buy investment property in the Colorado Springs real estate market in two categories. These are, namely, short term rentals and long term rentals.
Short Term Rentals
As previously described, Colorado Springs is a great tourist destination. The latter explains the growth of the Airbnb strategy over the years. Here are the places suitable for Airbnb Colorado Springs investment properties:
Central Colorado Springs
Median Property Price: $ 305,000
Airbnb Rental Income: $ 1,822
Airbnb Cash on Cash Return: 3.88%
Airbnb Cap Rate: 3.88%
Airbnb Occupancy Rate: 48.79%
Median Property Price: $ 425,000
Airbnb Rental Income: $ 2,094
Airbnb Cash on Cash Return: 2.68%
Airbnb Cap Rate: 2.68%
Airbnb Occupancy Rate: 28.90%
West Colorado Springs
Median Property Price: $ 342,000
Airbnb Rental Income: $ 1,637
Airbnb Cash on Cash Return: 2.44%
Airbnb Cap Rate: 2.44%
Airbnb Occupancy Rate: 36.63%
Long Term Rentals
Long term rentals are also likely to succeed in the Colorado Springs real estate market. Many real estate investors search for places where this is the optimal rental strategy. This is due to the fact that buying a rental property and listing it as a traditional rental brings a relatively steady income. However, the location and the property type should be chosen carefully in order for this to happen. Most importantly, there should be a demand for long term rentals in the local housing market. This condition has been met in the Colorado Springs real estate market. So, here are the best places for investing in Colorado Springs real estate for traditional rentals:
Median Property Price: $ 331,700
Traditional Rental Income: $ 1,452
Traditional Cash on Cash Return: 2.58%
Traditional Cap Rate: 2.58%
East Colorado Springs
Median Property Price: $ 255,000
Traditional Rental Income: $ 1,158
Traditional Cash on Cash Return: 2.46%
Traditional Cap Rate: 2.46%
Median Property Price: $ 277,900
Traditional Rental Income: $ 1,205
Traditional Cash on Cash Return: 2.33%
Traditional Cap Rate: 2.33%
#3 Investing in Colorado Springs Real Estate: What to Do?
There are two important steps you need to take before investing in any market. These are namely: real estate market analysis and investment property analysis. Real estate market analysis deals with exploring the market. This includes the current state of the market, the supply and demand relationship, etc. Additionally, real estate market analysis helps you find the market value of the property you are interested in and avoid overpaying.
Investment property analysis, on the other hand, deals more with the property. Investment property analysis uses various real estate metrics to indicate if a property is a good investment opportunity. As you can imagine, however, conducting such an analysis manually is quite a challenge. That is why you can use Mashvisor’s investment property calculator to guide you and help you in the process. To learn about other great tools to use, please visit “What Are the Best Market Analysis Tools in Real Estate Investing?”
Mashvisor’s investment property calculator is a real estate investment tool which will provide you with quick and accurate results regarding any property you are interested in. Additionally, the tool will provide you with detailed property and neighborhood analysis. To study this tool further, please check out “Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier.”
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.