Good question! Here you go! Link to the Colorado Springs Housing Authority
Category Archives: Rentals
From the inbox: you mention “cash flow” investing in rentals a lot, what does that mean?
Good question! In our city, we have somewhere around a 96% occupancy rate for rentals (I have heard it quoted as -1% but haven’t been able to validate that yet). This represents a great opportunity to invest in ‘income’ property here (I hope to buy at least one quadplex personally soon).
When I mention “cash flow,” I am specifically talking about the difference between the mortgage on a home and the rent it brings in. For example, a 3 bedroom, 2 bath home in Colorado Springs rents for – on average – $1100. What if you could buy that home with a mortgage of around $800 taxes and insurance included, then rent it out? The spread would be $300. Assuming a $20,000 downpayment, the ROI (Return on Investment) would be 5.5% a year gross. That’s MUCH better than a checking or savings account generates.
What if I don’t have $20K, you may be saying? That’s okay; there are other options from owner occupied quadplexes to partnerships and more.
Questions? Email me at robthompsonrealtor@gmail.com or call 719-440-6626.
Also, check out Bigger Pockets “Buying Rental Property.”
From the inbox: what should I look for in a tenant?
That’s a really good question and one I’ll defer to Bigger Pockets on!
This is their “Ultimate Guide to Tenant Screening.”
For tenants, this can give some insight into what landlords may look for.
For everyone, Bigger Pockets is a fantastic forum – and their podcasts are highly informative.
If you’re looking to buy or sell in the Colorado Springs or Denver area, please call Rob at 719-440-6626!
Rental prices due to rise 10-26%?
I had a lunch meeting with a “numbers guy” today…was told that he expects rental prices to raise on average 10-26% in the next year. I have not yet verified this information independently, so take it as an unconfirmed data point. Anecdotally, this doesn’t actually surprise me, though, having watched the rental market here climb for the last 14 months.
Looking to buy? Low interest rates…HIGH demand (especially for a 3 bedroom, 2 bath home that rents for ~1100ish)…this is the market to do so!
Rob – 719-440-6626
Renters feel pinch as rents increase…
Housing crunch coming to Colorado Springs…
…if you’re reading this from my Facebook group (Colorado Springs Rentals) you likely know the crunch highlighted in this article is here.
We are committed to providing you the most up to date data and options we can. There just isn’t a lot out there, especially on the rental side!
Perhaps the most startling fact in this article is the statement that by 2019, there will be a huge gap in affordability.
What to do? Plan for an increased crunch and rising prices. If interest rates rise, this may moderate that growth…but it’s difficult to say for sure.