Looking to rent a home in Colorado Springs? Interestingly, there are 124 MLS listed Single Family Homes (SFH) w/3+ bedrooms on the market at $1500 and below. There are 87 on the market at $1501 and above.
This differs from July by a total of 4 homes, which makes for an interesting market.
If buying is an option, I’d be honored to earn your business!
DATA SOURCE: PPAR MLS derived statistics
Here in Colorado Springs, this seems to be the trend. Especially around the $200K price point…we’re seeing lots of activity. Looking for a home? Questions about the process, I’ a home! Call Rob at 719-440-6626!me! Call Rob at 719-440-6626!
Good question! The first answer is that we have an intense rental market here with an app. 96% occupancy rate. That’s been sustained, too, for a couple of years. If anything, it’s getting harder to find affordable housing in the rental market in Colorado Springs.
Second, the MLS is the local database of agent and property manager listed homes. It is not the sole source of rental properties in town but is the best product we as Realtors have access to.
If you’re looking for housing in Colorado Springs, we’d be honored to earn your business. Call Rob or Drew at 719-440-6626 or email robthompsonrealtor@gmail.com!
This is one that I’ve been asked a bunch of times! It’s a good question and one that bears repeated asking.
Short answer: property and mortgage values and cash flow.
Longer answer: it’s a function of the dymanics of the city. As a landlord myself, here’s the analysis/format I use in looking at this. If you want to buy a $150,000 home, as an investment, you need at least 20% down. Let’s assume $1000 a year in insurance and another in taxes.
For investment purposes then, this home is going to cost a $30,000 down payment and at a 4.5% APR, cost a landlord $777 a month to pay principal, interest, taxes and insurance.
A landlord is going to need cash flow, too, to be prepared for emergencies and have a return on their investment. In this case, that $150,000 3 Bed, 2 bath home may rent for $1000-1150. The landlord is “cash flowing” about $223-373 in this case. However, that does not account for their costs any time anything breaks. This isn’t profit for the landlord, necessarily, as there are taxes and maintenance of the home involved, too.
It scales from there…a $175K home requires a 35K down payment (as an investment property) and costs $878 a month to carry in this scenario.
LARGE CAVEAT: This is for a 20% conventional loan, investment property. An owner occupied home will require much less down but have a higher overall mortgage as a result.
Looking to buy or sell a home in Colorado Springs? Please call Rob at 719-440-6626 or email me at robthompsonrealtor@gmail.com.
*This is not legal or financial advise just sharing information and experience. Always consult a CPA, lender or attorney as needed.
While not all inclusive, this checklist is a starting point for renters. To me, the most important tip is this: get the existing damages and needed repairs documented via photo and in writing.
This is an extremely difficult rental market. Don’t lose your security deposit because you didn’t document the move in.
Questions or have additional resources? Comment/post here!
Rob @ 719-440-6626
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.”
…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.
…some interesting data on the state of the rental market here in Colorado Springs.
We are happy to help you find a home, rental or purchase. Please give Rob the chance to earn your business; call 719-440-6626 or email rob.thompson@theagencycolorado.com or rob@rtrcolorado.com.
