Property investment has proven to be quite a lucrative option. Provided that you choose the right neighborhood, you can enjoy a consistent rental income, appreciation in property value, and also several tax advantages.
Below are some tips from our reputable and experienced team to guide you and allow you to choose the ideal property that matches your investment goals, finances, and lifestyle.
The Allure of Colorado Springs, CO
As a property investor, you must be cautious of where you’re putting your money. You’d want to invest in a thriving area with a robust market such as Colorado Springs. The city is the regional and national headquarters of several companies, such as Amazon, Progressive Insurance, and many more.
With its beautiful weather, it’s almost criminal to stay indoors. In addition, there are several recreational options for you to choose from. From mountain trails to state parks, you’ll find yourself drawn to what nature has in store for you. A local favorite is Pikes Peak.
While it’s growing at a considerable pace, Colorado Springs still maintains its small-town feel. The residents of the area are quite friendly and go out of their way to make visitors feel at home.
Residents of the area can attest to the affordable living costs. Potential tenants are also looking into such factors.
Tips When Buying Investment Property in Colorado Springs
The following are our top tips when buying an investment property in Colorado Springs:
1. Location
Location is undeniably one of the most important factors when buying an investment property. Real estate is immovable and therefore derives its value and demand from its location.
You want your rental property to be close to amenities. A potential tenant wants a space that’s close to supermarkets, bars, shops, and transportation hubs.
The location of the property will also determine the price that you’ll pay to acquire the property. Try and balance what you want as your ideal property (in terms of amenities) and how far your budget can stretch.
2. Condition of the Property
When it comes to the condition of the property, you want one that is in a renter-ready condition. This one is free of any major renovations and repairs. This will make it easier for you to lease out the property to a potential renter.
Hire the services of a property/home inspector. This is a professional with the training and expertise to determine structural defects within a building.
They’ll issue you a report that will detail the repairs you’ll have to do to make the property safe and habitable. You can use the home inspection report to bargain for a cheaper price.
Some investors may target homes that are in bad condition. They would renovate the houses and sell them at a marked-up price. This is known as house flipping. While it’s a viable investment option, you’ll need more experience as it’s a tricky venture.
3. Property Management
Investors focus their time and energy on getting the right property, but may forget about its management. For you to attract and retain tenants, you must offer them a quality experience on the property. This all comes down to management.
Comprehensive and quality management requires that you put in the time, energy, and resources. Not many property owners have the experience required to screen tenants, collect rent, and market the property.
For all your Colorado Springs property needs, rely on the quality team from Alliance Property Management. We’re a full-service property management team with the experience and established systems to manage your property.
With us as your property manager, you can be assured that all your tenants’ needs will be met.
4. Compliance With Rules and Regulations
Different investment assets have different regulations that bind how they’re transacted between investors. These laws are placed by the government to allow for a verifiable and true transaction.
Compared to stocks, bonds, and other investment options, property can be regarded as the one with the most applicable laws. You need to be aware of applicable regulations before you invest in a property.
Read up on your state’s landlord-tenant laws that explain the obligations and responsibilities of both parties in a sale agreement or lease contract. You should also be aware that these regulations differ from state to state.
5. Match Your Investment Goals
There are various reasons why you might choose to invest in real estate. Some investors are looking for a long-term investment with a stable source of income. Others are looking to diversify their portfolio.
While you might have identified a property in a good location, it might not match your investment goals. Rely on the services of a professional and experienced property expert who can guide you every step of the way.
6. Financing
How are you going to purchase your property? An option is equity, your savings. While it’s ideal, you may also have other financial obligations. You can then opt to balance with a mortgage from a trusted lender.
Make sure you choose the best loan terms before you sign off on any mortgage.
Several loans are available if you meet certain criteria. If you have served in the military, for example, you may have access to several loans.
Conclusion
Before you choose the property, look into the location, hire a home inspector, and research the local applicable laws and regulations. These tips should give you a good feel of whether the property you choose will fit your investment goals.
As you can tell, there's many reasons why investing in Colorado Springs is a great idea.
Are you interested in investing in Colorado Springs property? You need a reliable and expert property partner by your side who will guide you every step of the way. Known throughout the region, Alliance Property Management is the team to rely on!
From our years of experience in the local property market, we have expert knowledge of the different neighborhoods. Our team is ready to give you sound advice on which neighborhood matches your unique investment needs. Get in touch with us today!
