Denver Real Estate Stats: What you should know!

Some information can be misleading. Take this post shared Thursday, June 4th by a very credible organization, the Denver Board of Real Estate Agents. They call this information the “June 2020 Market Overview” but it is important to understand that the data is based on homes closed in May 2020. You may or may not know that once you find a home you love and put in an offer, you are typically “under contract” on that property for at least 30 days giving you a due diligence period before you close. So the homes that closed in May 2020 were put under contract in April 2020. On March 23rd Coloradoan’s were ordered to “stay at home” and by April 8th, all in-person showings were shut down. Real Estate agents adopted virtual showing strategies, but showings did not resume until the beginning of May. So now you know that June 2020 stats should really be labeled April 2020 stats. Now that you understand that our stats are a lagging indicator, you can understand how the graphic actually shows what happened to the Denver real estate market during the “Stay at Home” order in Denver.

I have better sources for my data and I’m on the front lines and I can tell you our real estate market has come back really strong since “Stay at Home”. The graph below shows data from the beginning of the year. Covid19 really started to impact our market mid-March and the worst of it was mid-April. As you can see, by the first week in May we got back on track and closing just started bouncing back last week. That makes sense right? Homes close 30 days after the showing is completed and the contract is signed. Showings started at the beginning of May, so we would expect closing to follow 30 days later at the beginning of June. Understanding that our data is always lagging by 30 days will really help you navigate real estate stats or you are welcome to JUST ASK ME!

 

My Real Estate Investment Plan

My goal has been to buy a new primary residence every two years in order to own five properties that are all cash flowing $1000/month within ten years. That will allow me to have a passive income stream of $5,000/m and I could have the opportunity to retire in ten years. My strategy requires moving every two years. I do this in order to purchase the property as a “primary residence” so I can put less than 20% down. This makes it easier to save enough money in two years to afford the next down payment. You don’t have to be a real estate agent to execute a similar strategy for yourself.

I’m now on my second home and just concluded my first year of being a landlord. It was a learning experience and I hope my tips above help you create a real estate portfolio that gives them passive income so they can enjoy life, instead of working until they die.

I can help you build your real estate portfolio. Considering keeping your existing home as a rental instead of selling it? I can help you through the process of renting it at no additional cost if you use me to help purchase your new home. Typically I charge one month’s rent for this service.

What I learned my first year as a landlord:

1. Buy darker carpet and doesn’t show stains.2. Leave a print out of the trash pickup schedule for the tenants.

3. Make it clear that weeds exist and when they grow above one foot the tenant is responsible to pull them.

4. Don’t allow renters to put holes in the walls to hang up things. You will have to paint and patch every year. Also, paint all the rooms the same color.

5. I prefer managing myself than having a property management company. A brand new shower enclosure shattered on my renter. She was fine, it was tempered glass. I  was able to figure it out pretty quickly and the glass was still under warranty. I imagine if I had a property management company the phone tag required and it makes me dizzy. There is no doubt when issues arise that the property management company is going to call you, so why wouldn’t you just save the money and deal with the call directly from the tenant.

Running a Rental

Over the last two centuries, nearly 90 percent of the world’s millionaires have been created by investing in real estate. Getting started is easy: buy your first house! Growing a real estate portfolio that creates passive income is more difficult. It requires that you play the role of a landlord at least long enough until you understand the role and can hire a property manager.

Eight Easy Steps to Rent Out Your Home

1. PHOTOS – I would start by getting professional photos of your home. Ask your realtor for a recommendation or go with a company like www.virtuance.com that will give you wide-angle images with brightening filters and a floorplan that will make your home stand out online. It is important to plan an ideal time to get photos when the house looks best. Ideally, take photos when the home is furnished nicely, cleaned, and during the Spring months when everything is green. You might use the same photos for years, so it is worth the investment (about $150). You don’t want to try to take photos with messy tenants.2. ZILLOW – Zillow has made being a landlord EASY. In Denver, most rental are not listed by a real estate professional on the MLS and no commission is paid. It is common practice for private landlords list on Zillow which also puts the listing on Trulia and Hotpads. Enter the basic information and upload the photos. Zillow also allows you to upload a “walk through” tour of the home and 3D tours. Once online, you should start receiving inquiries right away. If there isn’t much interest, you need to lower the price. If it is too overwhelming, you priced too low and should consider increasing your rent.

3. SHOWINGS – Pick one time per week in which you will allow showings and stack multiple showings into a two-hour window. You can even set the availability on Zillow. I recommend telling all inquires the showing window is Saturday between 11-1 pm. Most people can accommodate and space them out so you will have a chance to meet all the potential renters to tell them about the home. You are interviewing the caretaker of your biggest investment, so make sure you are asking lots of questions to make sure they are qualified and would be good stewards of your home.

4. SCREENING TENANTS – Zillow has a very nice platform for renter applications and they will also provide and credit report and background check for free. It is important to call a few references if you’re having any doubts about a candidate.

5. WRITE YOUR LEASE – Get a lease from a friend (I’m willing to share mine, email me) or you can find a template online. I would then customize the lease in google docs to make sure it works well for your property. Zillow does have a lease available through “rental manager”, but I found it to be too generic. Make sure your lease covers property maintenance, especially if you own a home with a large yard. You also might consider giving the renters an option: The expectation at the advertised rent amount is that the tenant would handle all lawn mowing, weed pulling, watering, leaf raking, and snow shoveling. However, you would be willing to hire a landscaping service for an additional $100/m.

6. COLLECTING RENT – You should start a separate bank account and LLC for your rental property. Set your mortgage, rent payments, water bill, and any expenses to go through this account and you will have a better experience when filing your taxes. If you are collecting a security deposit, it should be held in a special “escrow” account separate from your operating account. The security deposit is typically required upon accepting an application. Make sure that you’ve established clear expectations if multiple renters are contributing to the rent, the collective rent payment should come from one person in the group in a consistent payment form (establish this in the lease). You can use Zillow to collect rent payments. I prefer ACH direct deposit.

7. ORIENTATION AND WALKTHROUGH –  Make sure your tenants know all the intricacies of your home and how things work. Even things like trash pickup. Take time to show them everything so you don’t have random questions coming your way in the middle of the night. You also want to use a walkthrough checklist to document the condition of the property to make sure if anything is damaged it has been accounted for. I like this list I found online.

8. SIT BACK, COLLECT RENT, AND FIND A GOOD HANDYMAN. Questions and issues will come up. It helps if you have good renters, a quality home, and live nearby. Given the monthly income, even if you spend time managing the place every month it is a good deal. The biggest time suck is finding new tenants, so work on keeping your renters happy and you will save yourself time and money.

Making a good investment:

My favorite way to analyze the performance of a rental property is to use the “Cash on Cash Return” equation (see the visual below). When you purchase a home, even as your primary with no intention of renting you should make sure that your mortgage is less than you’d be paying to rent a similar home in the area. If you are buying primarily with the intention of renting, I would aim for 5-10% annual return. The appreciation of home values is just the icing on the cake. You can count on monthly income, you can’t always bet on appreciation. Cash on Cash return over 10% is really good in the Denver market. Below is a simple example of a condo. Need help? We would love to help you find a good investment property.

ADU Guide / How to find a property zoned for an ADU in Denver

Part 1: How to find a property zoned for an ADU in DENVER
Navigating Denver zoning code and understanding how to identify ADU properties takes an expert. If you have a passion for this type of thing you can figure it out. The first step is to understand the general areas and neighborhoods where the zoning accommodates building an ADU.

 

Where to look:
Currently, only about 15% of Denver is zoned for ADUs. Neighborhoods, where ADU zoning is commonly found, including Berkeley, Sunnyside, West Colfax, Barnum, Whittier, Cole, Clayton, Platte Park, Overland, Baker, and Cap Hill.
A big zoning change is in the works and in the next iteration of our zoning code many more areas will have ADU zoning. It will take probably about 5 to 10 years for the zoning decisions to be finalized so don’t hold your breath waiting.

 

 

Understanding the zoning code:

We’re about to get really technical regarding the Denver zoning code. Any citizen can find the entire 1300 page zoning document online. Here is a link to the Denver Zoning Code. The people most well-versed in the zoning code are trained architects.

We recommend:  StudioBvio

 

The simplest way to start understanding the zoning code is by learning the basics.
When evaluating a property you will need to know the lot size and zoning code found on most listings or on the City’s Assessor’s website
There are 28 different zoning codes that allow this type of building structure.  Within each zoning code, there is a minimum lot size which is going to exclude some smaller lots in the neighborhood. The lot will accommodate an ADU if it has the zoning code and lots size in the list below.
Once you verify that the property is in fact zoned correctly and has a big enough lot there are a few properties that are more ideal for an ADU than others.

 

Ideal ADU lots:
1. Homes on corner lights are ideal for ADU use to access an avenue rather than an alley.
2. Lots without garage are preferred to avoid the expense of demolishing an old garage.
3. You’re lot size and zoning code will determine the size of ADU you can put on your property. Bigger lots accommodate bigger ADUs. So if I was looking for property to build ab ADU I would only purchase something with a large lot. Denver ADUs come in three sizes: 650 sq ft, 864 sq ft, and 1000 sq ft. Fixed costs are equal no matter the size, so a larger ADU is a much better value.

 

Project Guide for Detached Dwelling Units
The Project Guide for ADUs is intended to provide you an overview of the permitting process for detached accessory dwelling units (ADUs) such as a guest house that is detached from the primary residence and contains provisions for sleeping, cooking, and sanitation.

 

Help finding and ADU:
The reality is that even a real estate agent can’t filter properties that met the ADU criteria and send you these listing. Because you have to run the code and the lot size for thousands of different properties it is nearly impossible on the current MLS system that real estate agents use. On my website, I have an area specifically designed to solve this problem.
If you want to buy a property zone for an ADU I highly recommend utilizing a real estate professional who is knowledgeable in this area.

TOP 25 Denver Neighborhoods

5280 is out with the
TOP 25 Denver Neighborhoods.
There are 78 neighborhoods in Denver. When making the list, 5280 took into account home values, school quality, safety, and those distinctive aspects that set a place apart. You can go to their website 5280.com to read the article and see neighborhood boundaries and highlights.

A big change from last year, South Park Hill was ranked 19th in 2019 and takes the top spot – 1st place in 2020.

2 neighborhoods that move into the TOP 10 from last year.
Wellshire moved from 21st to 7th
Hilltop from 23rd to 9th

4 Neighborhoods that went from not being on the list in 2019 to being in the TOP 10.
West Highland up from 37th to 4th
Cherry Creek went from 29th last year to 5th
Speer went from 43rd in 2019 to 6th
Highland went from 41st to 8th

9 Neighborhoods in the TOP 25 this year that were not last year.
Union Station was 61st and is now 12th
Hale went from 49th last year to 16th
Platt Park was 27th last year and now is 17th
Regis was 54th and is now 19th
Barnum enters the list from 44th to 21st
Cory Merrill was 48th and is now 22nd
Skyland enters the list from 33rd to 24th
And Sloan Lake from 46th to 25th
Central Business District is new to the list because in the past there were not enough home sales to qualify.

How to build an integrated Smart Home System

It is important to strategize before you start building your smart home network. The beauty of having a smart home network is when all your devices are syncing up flawlessly and making your life simple. Every person’s level of techiness and budget is different, so we’ve outlined different bundled options below for different needs. We have created four groupings below that will integrate well. Google’s Nest system has been built out for a consumer to have a flawless experience. Amazon’s Alexa with Ring is the most universal system. If you decide to go with Alexa as the main hub for your system, you can feel confident building a system and filling in with a magnitude of products that are compatible.

Voice Assistants for your Smart Home System

Before we dive in, it’s important to note that there are three major voice assistants that dominate the market: Amazon Alexa, Google Assistant, and Apple Siri. If you want to control your smart home with voice commands, deciding which platform you prefer and buying the products that are supported by your preferred voice assistant before you buy. Many of the different products linked below will work with multiple voice assistants, this is really personal preference. Alexa, Google Assistant, Apple Siri cover the big names like Philips Hue lights and Nest thermostats. Frankly, unless you have some very esoteric home automation devices, you can probably control your smart home with either voice assistant.

Start with a Hub in Mind –
Google Nest or Amazon Alexa

Google Nest and Amazon Alexa have the most robust systems that have already been built out to be compatible as a starting point. Apple has HomeKit however, this system is not nearly as robust. You might also consider starting with SimpliSafe for your doorbell, lock, and security system. From there, you can build with either Alexa or Google for additional products to add to your Smart Home ecosystem.

Prices listed below will fluctuate depending on current sales and promotions.

Google Nest SmartHome

  • Google Voice Control starting at $29 – If you go with a Google system, there are six options for central control and Google Assistant is much better than Alexa at parsing natural language. Amazon’s voice assistant is picky with syntax, though it has gotten better with steady updates. Google Assistant doesn’t get confused by wording as easily as Alexa, so you can speak more naturally and not have to worry as much about phrasing your commands properly. Below are our picks if you are building a google Smart Home system.
  • Nest x Yale Lock $250
  • Nest Hello Doorbell $200
  • Nest Secure. $499, $19/m monitoring by Brinks w/ contract
  • Google Home Max $300 is a big bassy smart speaker that pairs well with Google Home Mini speakers

  • Nest Learning Thermostat $200 is one of the first and still the best thermostats.  Works well with Alexa as well as Google.

  • Nest Protect smoke and CO Detector $99 this self-test themselves and notify the owner on the app. They also have a night light that turns on when you walk under them in the dark

Amazon Alexa Ring Smart Home

  • Alexa Voice Control Hub – Amazon Echo Show 8 $129 is the best for Alexa, also consider the Echo Show 5 $70 for smaller spaces. Alexa has much more robust third-party support, with thousands of skills that can be enabled to perform specific tasks, like ordering a pizza or telling a story. You can also make your own simple Alexa skills easily with Alexa Blueprints. Alexa also supports many more smart home devices for voice control than Google Assistant.

  • Ring Video Doorbell 3 $200 is a reviewer’s favorite and works with both Google and Amazon (Ring is owned by Amazon)

  • Ring Alarm Security System $219 from Amazon, one of the best in the Ring ecosystem. Professional monitoring is just $10/month

  • Echo Dot has a drop-in feature that lets you use your Echos as an intercom.

  • Ecobee $250 thermostat has a good option with voice control built-in.

 

Apple HomeKit App w/ Siri on iPhone

 

Unfortunately, Apple does not have a robust compatible system as a starting place. You could use your iPhone, iPad, or apple laptop as the central control hub for your smart home system or buy an Apple HomePod. Go to the HomeKit app to see what is compatible and build from there – there aren’t as many products as I expected.

Affordable SimpliSafe Security

For a great doorbell, lock, and security system I would start with SimpliSafe. It is the most affordable system on the market and a great way to get the basics of your system started for less than the google nest or amazon ring system. It also integrates with Alexa, Google, or Apple Watch so you can use Alexa and Google voice assist to arm your system. This product also integrates with the August lock and the Nest thermostat.

  • SimpliSafe Smart Lock $99 lock and unlock your door using the PIN pad, the key fob, or your phone.
  • SimpliSafe Doorbell.   $169 – has all the same capabilities as ring but integrates with the security system on one app.
  • SimpliSafe Hearth Security System  $300 – includes a base station, keypad, key Fob, 3 Entry Sensors, 1 Motion Sensor, 1 105dB Siren, 1 Smoke Detector

 

Combine the Best in Smart Home Technology Into Your own System 

If you don’t mind having multiple apps to control devices on your phone just pick your favorites and start building your custom smart home.  We’ve curated a list of our favorites in several different categories, taking into consideration features, interoperability, and value. You can mix and match different products. Advanced techy homeowners who know programming chops can even build your own home hub with an open-source program called Raspberry Pi.

Product Categories

Locks

All the locks allow you to lock and unlock your door from your phone, give people you trust the passcode, and check the status of your door.
  • August Smart Lock Pro + Connect $279 attaches to your existing deadbolt and unlocks with bluetooth or over any of the three voice assistants. August integrates with Simplisafe home system.
  • SimpliSafe Smart Lock $99 lock and unlock your door using the PIN pad, the key fob or your phone. You can also sync your system with Amazon Alexa or Google Assistant.
  • Nest x Yale Lock $250 – Yale has been making locks for years and they partnered with Nest (Google) to make their product techy.

Security/Monitoring 

  • Ring Alarm $219 from Amazon, one of the best in the Ring ecosystem. Professional monitoring is just $10/month
  • Nest Secure  $499 is a similar suite from Google. $19/m monitoring by Brinks w/ contract.
  • SimpliSafe Hearth  Security System $300 and $15/m monitoring.
  • Arlo Ultra is one of the best cameras on the market, but Arlo does not have an alarm system product.
  • Alarm.com provides extensive support options.

Music

  • Alexa Echo Plus bigger smart speaker to complement the smaller smart speakers like the Echo Dot that can be placed elsewhere.  Bonus – I love the Drop-in feature that lets you use your Echos as an intercom.
  • Google Home Max   $300 is a big bassy smart speaker that pairs well with Google Home Mini speakers. 
  • Sonos One   $199 Amazing sound, high price. compatible with Google and Alexa. Control music from the sonos app. System connects to wifi so when calls come in your music is not interrupted. Sonos is supported by Alexa voice commands.   
  • Apple Home Pod $300
  • Bose Home Speaker  $200 – compatible with Google and Alexa  

Smart Outlets

Hub – control center 

Thermostat

  • Nest Learning Thermostat $200 is one of the first and still the best thermostats. Works well with Alexa as well as Google.
  • Ecobee has a good option with voice control built-in.

Lighting

Other Categories/Honorable Mentions

Routers

Special Thanks to Pat Kinne

39th Avenue Greenway to open in 2020

We are excited to highlight this project that has been in the works for years. Denver’s newest greenway will be operational in 2020. The 39th Avenue Greenway is a magnificent 12 acres greenway that will start at Franklin & 39th Ave in the Cole neighborhood near the new 38th & Blake train station. The beautiful trail will run east all the way to Steele street with 4 plazas, 86 lights, 2 new pedestrian bridges, 1.8 miles of bike trail, 2.4 miles of new sidewalks, and 13 shade structures. It will connect to the 40th and Colorado train station and almost reach Colorado Blvd.

39th Avenue Greenway Draft Design Concept

The 39th Avenue Greenway and Open Channel will effectively and safely convey floodwater to the outfall at Globeville Landing Park. Outside of storm events, the area will remain mostly dry.This channel is an integral part of Platte to Park Hill: Stormwater Systems. It will be designed using a community-focused approach to provide the following benefits in addition to flood protection:

  • Add 12 acres of new recreational open space in the Cole neighborhood
  • Enhance community connectivity, including a biking/walking trail between Franklin and Steele streets
  • Improve the quality of stormwater entering the South Platte River

More information about the project can be found here.

Here are some photos of the project in progress.

New Listing: 420 Raleigh Street, Denver

We are excited to share with you our new listing at 420 Raleigh Street in Denver’s West Barnum neighborhood. Fully renovated 3 Bed / 2 Bath home in West Barnum. NEW windows, roof, kitchen appliances, interior, and exterior paint, and flooring throughout. This home has an open kitchen concept with a beautiful master suite, which includes a large custom closet. The property sits on a nice lot with a new deck and landscaping. There is a large patio for entertaining and a new one-car detached garage. Easy access to Downtown and to the mountains off of 6th Avenue.

This property is Move-in ready and easy to show and sell. Offered at $460K

See the virtual tour/listing video
Listing information here

Listed by: Taylor Whitton – Living Room Real Estate

Featured Business Partner of the Month – Bri Miller

Bri Miller is the paperwork goddess behind the scenes of all my transactions. She ensures all the paperwork is delivered, signed, and saved. I’ve hired Bri to double-check, manage, and send important documents for the last three years. She also reminds me of important deadlines coming up to make sure nothing gets missed.


About Bri: A native of Minnesota, Bri moved to Denver in 2011 and felt at home the moment she arrived. The past nine years have given her the opportunity to live in and experience some of Denver’s best neighborhoods including Cap Hill, Berkeley, West Highland, and currently Wash Park. It was the rapid growth and development of these neighborhoods that really peaked Bri’s interest, and in 2016 she decided to make real estate her career. Kassidy and Bri met as fellow agents at Live Urban – the lifestyle of transaction management suited her and she hasn’t looked back. When she’s not behind a computer helping facilitate successful real estate transactions you’ll either find her on a bike at her favorite spin studio in West Highland or walking Wash Park with her pup Athena.

Our Latest Listing Video

Our Mission

We pair people with the right place for a prosperous life.

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3997 Haddon St. Denver
303-720-8491