Today the Dow fell 634 points, the 6th worst point decline for the Dow in the last 112 years. Many investors are thinking their money needs to be in something they consider to be “safe” investment options.
Currently, Denver Investment Properties are seeing CAP rates between 6-10%, dependent upon the location, condition, and current rents the investment property is bringing in. Many times there is the ability to purchase an investment property and increase the CAP rate by improving the property, better management, laundry facilities, etc. As discussed in my last post, current property vacancy rates are at a 10 year low. I’ve heard the popular areas in and around Denver, even up to Boulder, are below 2% currently. This means owners can raise rents due to the extremely low vacancy levels, ultimately increasing their CAP rate.
There are several investment properties in the area currently available, under 12 units, that are producing between a 6-8% return. These are great properties for the first-time investor to take on and get their feet wet. Experienced investors could also capitalize on these buildings, and if they own other buildings, just turn it over to a property management firm and still see significant returns.
Now, the last reason one should consider Denver Investment Properties is you’ll own a tangible product, not a piece of paper. Many outside reporting agencies have put the overall Denver market in the top 10 in the country, so the chances of seeing appreciation on the building itself is pretty good. You’ll be generating returns from rent, laundry, garage space, etc, but also hopefully seeing future appreciation on the actual real estate.
Here is a video from today discussing various people’s opinions about today’s stock market loss:
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