Real estate investing in Colorado may be one of the best in the country. Rankings for Colorado are as follows:
- Lowest property taxes in the third most populous state
- Traditional rental income is highest in the 8th best state
- Rents from Airbnb are highest in the 8th best state
What are the most profitable rental properties in Colorado for real estate investors? When it comes to investing in rental properties, which cities are the best?
Are investment properties a good investment right now?
As more people are able to work from home during COVID, Colorado has been a great place to invest in investment properties for years now. This has created a huge demand for properties in Colorado, which means our rental market here is flourishing because they’re moving to places they’ve always wanted to live, like Colorado.
In terms of real estate markets, which cities have the best?
It is very desirable to live in Colorado due to its strong housing market. Nevertheless, Aurora, Fort Collins, Denver, and Colorado Springs are some of the most populated areas with lots of diverse properties.
Here are the top five Colorado investment opportunities.
Below is a list of the 5 most popular Colorado cities for investing in real estate, both traditional and Airbnb. Although each city may have its own rules regarding Airbnb, some may not recognize this method of investing in real estate as a legal one.
Unlike other cities, Denver does not permit Airbnb rentals from non-owners. Renting out a rental property on Airbnb requires the host to live in it as their primary residence. As part of Colorado Springs’ real estate market regulations, non-owner-occupied rentals are not permitted in residential areas.
Aurora is the number one market for housing
- Property prices average $375,503
- A price of $221 per square foot was quoted
- Ratio between price and rent: 16
- Income derived from traditional rental properties: $1,899
- It is typical to receive a 1.5% return on cash on hand
- It costs an average of $116 a day to stay at Airbnb
Since the first quarter of 2000, Aurora’s real estate market has appreciated by 99%, or 3.45% annually. The demand for traditional rental properties has increased from 40% to 41% of sales in the city.
The second market for homes is Denver
- $534,888 is the median property price
- There is a $343 price per square foot
- An average price-to-rent ratio of 23
- Rental Income: $1,959 on a traditional basis
- It is typical to receive a 1.5% return on cash on hand
- It costs an average of $152 per day to stay at Airbnb
Since Q1 2000, Colorado’s Denver housing market has increased in value by 133%. According to this list, Denver is one of the top cities for real estate appreciation with an average annual appreciation rate of 4.26%. Denver’s market has a high percentage of renters – fifty percent.
Number 3 are buying and selling in Colorado Springs
- Price per square foot: $446,256
- There is an average price of $185 per square foot
- A price-to-rent ratio of 24 is acceptable
- Income from traditional rentals: $1,557
- An average return of 1.4% on cash on cash is considered traditional.
- It costs $137 on average to stay on Airbnb each day
Right now, Colorado Springs has a lot of competition for investors looking for Colorado investment properties. The real estate value of Colorado Springs has increased 92% since the beginning of 2000. Rent is the primary source of income for 41% of the population.
The fourth point is Longmont homes
- An average property price of $636,448 can be found here
- An average price of $257 per square foot
- There is a 26 percent price-to-rent ratio
- Typical Rental Income: $2,041
- There is a 1.3% cash-on-cash return in the traditional model
- It costs an average of $97 per night to stay at Airbnb
A buyer’s market makes it a fair price, despite the fact that it is the most expensive on the list. The real estate appreciation rate in Longmont is 3.23% annually, and home values have grown by 90% since Q1 2000. There are 39% of people who rent their homes.
Number five is the market for Fort Collins homes
- A median property price of $504,339 was recorded
- $237 per square foot
- An average price-to-rent ratio of 23 is achieved
- Income from traditional rentals: $1,865
- Return on Cash: 1.2% in the traditional model
- Airbnb daily rates average $152
Over Fort Collins’ own history, housing values have increased by 115%, on average, over the last decade at a rate of 3.86%. Renters make up a large percentage of the population in Fort Collins.
Colorado Investment Property Buying Guide
Where is the best real estate market in the world?
¿Qué ciudades tienen el mejor mercado inmobiliario?
El mercado de Colorado es uno de los mercados inmobiliarios más populares y competitivos en toda la nación. Algunas de las mejores ciudades para invertir en un inmueble en Colorado son Aurora, Fort Collins, Denver y Colorado Springs.
You should of course make sure your financing is in order before purchasing an investment property in Colorado. To get an accurate rental estimate and to develop an action plan for renting and managing the property, get in touch with the property manager once you begin shopping.
Would it be a good investment to purchase a rental property in Colorado?
Absolutely! It is one of the most desirable places to live in Colorado, and the Colorado housing market is extremely strong. Rental properties here are in high demand since so many people move here frequently.
Colorado real estate investing: how do you get started?
Our Real Estate Professional, Jason Cassidy, will help you find high-return investment properties once you find the best neighborhood to invest in real estate. We will then manage your investment for you professionally by Colorado Realty and Property Management