Rents could be higher
Denver metro rents may be high, but they would be higher if not for $12 billion of new apartments constructed since 2000. That’s the 2nd largest apartment building boom in the country. Rent prices increased by 62.5% from 2000 to 2016 because builders still can’t keep up with demand, so expect to see more apartment complexes going up all over town for a the next several years. This is the market’s approach to affordable housing: new apartments get top dollar and older buildings’ rents go down in proportion to their age and distance from popular areas.
Out of state investing tip
How do you know what you are getting into with an out of state deal? This article offers a great tip: study the retail space in the neighborhood before you buy. The type of retail space, or the lack thereof, will tell you a lot about what kind of buyer or tenant you will be working with. You can even go so far as to investigate building permits issued in the area. That is research you can do before you step onto an airplane. (If you want to learn more, consider joining our Out of State Investing Class taught in Cleveland, OH this June.)
QUOTE OF THE WEEK
See you soon,
Read the full newsletter here:2018.04.20 – Friday Flyer