I love sharing with my clients the different ways to make their real estate purchases smart investments. I want to share with you my six favorite ways to invest in the market.
The Classic Move Up
Start small and every few years sell your current home and upgrade into something bigger. Great for every phase of your life – condo, townhouse, single family to a mansion. As your life grows, your home grows with you!
Live with roommates who pay the mortgage. This is great for people who like communal living. Room size, privacy, and two living rooms are important. This is a great way to get started as a young person before you have permanent roommates aka a husband/wife and children!
Find a place that has a separate area which can be rented short-term. Great for people who travel a lot and live in highly desirable areas. It is smart to avoid HOAs and in Denver, it must be the primary residence to legally rent short term.
Find a place that needs improvement. This is great for people who are handy and have excess time and cash. Best if you can find these deals off the market! If you do it yourself, you must have cash for the materials. A renovation loan can also be an option if you plan to hire a general contractor. If you are doing a quick flip, remember that if you live in the home less than two years, plan to pay taxes equal about 30%.
Denver & Mountain Balance
Purchase a second home in the mountains and AirBnB your Denver place on the weekends or vice versa. Great for people who love to ski and hike but also have obligations in the city. Live the ideal Colorado life and make a great income while doing it!
Real Estate Retirement
Purchase a new primary residence every two years, converting your old primary into a rental, and never sell. Great for people who want to retire and not work anymore. If you focus on cash on cash return when you make the initial purchase, you should be able to cash flow each investment for monthly residual rental income. Within 10 years you could be making about $5,000 per month. After thirty years it is pure profit and ideally, the values of the homes have tripled.