Investment Real Estate

Investment Real Estate is the most lucrative place you can put your money. After placing your down payment the property should maintain itself. Therefor you need to do research into what all the costs will be. Main source of income is going to be rent. What is the market rent for the property you are looking at? General rule is 10%, meaning you can collect 10% in rent of what your loan is. You can achieve this by putting more down on a property or finding real good deals. In a high appreciating market 10% is very rare and most will settle for less.

Gross Rent Multiplier (GRM)

Gross Rent Multiplier is the first level of qualifier to tell if a property is worth taking a deeper look into. This is a very simple formula taking the List Price or Fair Market Value of a property divided by the Annual Income. ex. $1,000,000 ÷ $100,000 = 10. You are buying an income stream in an investment property. The lower the GRM the less you are paying for that income stream. This can help you eliminate properties fairly quickly. Let's say you are looking at 20 properties and they range from a GRM of 7 - 12. Maybe you know you can only make the numbers work with a GRM of 9 or lower. Now you can eliminate several candidates and move forward with a deeper look.

Capitalization Rate (Cap Rate)

Capitalization Rate is going to be your next level of information. To calculate this we need to know the Gross Scheduled Income (the theoretical maximum rent). Less Vacancy and Bad Debt (typically 5%), which gives you the Gross Operating Income (GOI), less all Operating Expenses (management, insurance, maintenance, utilities, property taxes, legal and accounting fees, etc...) Which gives you your Net Operating Income (NOI). Cap Rate is the NOI ÷ Purchase Price. ex. $65,000 ÷ $1,000,000 = 6.5% Cap Rate.

The lower the Cap Rate the lower the returns on investment. So we want to find as high a Cap Rate as possible. Your own investment strategies will tell you at what rates you are willing to invest. Lower Cap Rates tend to be A Class properties. More amenities in nicer areas, with generally less issues. Higher Cap Rates tend to be found in C Class properties. So these may come with more issues than you want to take on.

Before Tax Cash Flow (BTCF)

If you are taking out a loan you need to find what your Debt Service is per month. Take your Net Operating Income (NOI) less the Debt Service and this gives you Net Spendable Income (NSI). NSI ÷ Down Payment = Cash-on-Cash Return, or $24,324 ÷ $453,250 = 5.4% of the Buyer's Investment.

After Tax Cash Flow (ATCF)

Now we are really diving deep and you will need help from your lender and tax professionals most likely. We are now taking depreciation on the property. Lets assume an 80% depreciation rate on a $1,295,000 property. Residential properties are depreciated over 27.5 years and commercial over 39 years. ($1,295,000 x 0.8) ÷ 27.5 yrs. = $37,673/yr. = $3,139/mo. At a 37% combined Fed/State tax bracket, this is $1,162/mo. So the ATCF is approximately your NSI of $2,027 in this example + $1,162 = $3,189/mo. = $38,268/yr. Effectively taking the Buyers cash on cash return from 5.4% before tax to 8.4% after tax!

You gain value in multiple ways, which is why investment real estate is so sought after. The market will continue to appreciate. On average Northern Colorado experiences 4-5% growth each year. Your renter is paying your mortgage and you can take tax deductions. (I am not a tax professional, please seek one for any tax advice) This can add up to over 30% in gains year after year! The stock market cant even come close to that with averages around 10-12%.

Click here for Tax Advantages in Real Estate.

Click here for information on Self Directed IRA's.

The search below are not necessarily great deals, these are purely properties the listing agents have market as investment properties. They are not vetted by me. You need to research each individual deal to see if it is a good fit for what your needs are. Buy and hold is a great way to go. An occasional fix and flip deal may present itself. If you have any questions regarding any property please don't hesitate to Contact Me.

Investment Properties

All Listings $100,000 - $200,000 $200,000 - $300,000
$300,000 - $400,000 $400,000 - $500,000 $500,000 - $600,000
$600,000 - $700,000 $700,000 - $800,000 $800,000 - $900,000
$900,000 - $1,000,000 Over $1,000,000
55 Properties Found. Page 1 of 5

Outstanding West Facing Income Property With At...

NEW Photo of Listing #891416

$517,900 Active

  • 0.19 Acres
  • 3,720 ft²

Income Property

1330 Terry St, Longmont, CO

MLS® #891416

Phoenix Realty & Property Mngt

Outstanding West Facing Income Property With Attached Leases With Tenants Who've Been Renewing For Several Years. Each Duplex Is A 2 Bed, 1 3/4 Bath Unit With An Attached 1 Car Garage + 2 Car Parking On Driveway, Front Patio And Large East Facing Backyard, ...

You Will Not Find Anything This Nice , For This...

NEW Photo of Listing #893727

$185,500 Active

  • 0.21 Acres
  • 930 ft²

Income Property

936 Kimbark 2, Longmont, CO

MLS® #893727

All Pro Real Estate

You Will Not Find Anything This Nice , For This Price ! Great Opportunity For Investment, Builder Must Sell. Commercial Only, Explore The Great Tax Benefits Of Owning Your Own Space. Formerly Used For Chiropractor, Hair Salon, And Offices. Hoa Covers Water,...

Attention Investors! Tri-level Home On A Large ...

NEW Photo of Listing #894134

$220,000 Active

  • 0.29 Acres
  • 1,384 ft²

Income Property

4216 Central St, Evans, CO

MLS® #894134

Kittle Real Estate

Attention Investors! Tri-level Home On A Large Corner Lot With Attached Two Car Garage And Enclosed Carport. Tenants Already In Place And Leases Must Be Honored. Leased For $1,000mo Through 4/30/2020. Seller Has 9 Other Single Family Homes, A Condo And A Tr...

Fantastic Home In Greeley! Enjoy The Expansive ...

NEW Photo of Listing #894175

$185,000 Active

  • 0.18 Acres
  • 672 ft²

Income Property

234 16th Ave, Greeley, CO

MLS® #894175

Kittle Real Estate

Fantastic Home In Greeley! Enjoy The Expansive Backyard From The Covered Back Patio. The Home Features An Eat-in Kitchen, Two Bedrooms And A Full Bath. The Master Bedroom Also Boasts Two Closets! This Home Presents A Great Opportunity For Customization And ...

Attention Investors! Brick Ranch Home With Part...

NEW Photo of Listing #894221

$270,000 Active

  • 0.16 Acres
  • 2,160 ft²

Income Property

3011 W 12th St, Greeley, CO

MLS® #894221

Kittle Real Estate

Attention Investors! Brick Ranch Home With Partially Finished Basement. 3 Bdrms, 2 Baths. Attached 1 Car Garage & Additional Parking Spaces In Driveway. Covered Front Porch. Mature Landscaping. Tenants Already In Place And Lease Must Be Honored. Leased For ...

Attention Investors! Great Opportunity To Add A...

NEW Photo of Listing #894256

$280,000 Active

  • 0.17 Acres
  • 2,542 ft²

Income Property

2612 16th Ave, Greeley, CO

MLS® #894256

Kittle Real Estate

Attention Investors! Great Opportunity To Add A Home To Your Rental Portfolio With Tenants Already In Place! Just Minutes From Unc! Ranch Style, 4 Bed, 3 Bath Plus Attached 1 Car Garage. Rented At $1,200. Lease Must Be Honored & Goes Through 4/30/2020. Tena...

Attention Investors! 2 Bed, 1 Bath Ranch Home W...

NEW Photo of Listing #894261

$185,000 Active

  • 0.13 Acres
  • 672 ft²

Income Property

412 16th Ave Ct, Greeley, CO

MLS® #894261

Kittle Real Estate

Attention Investors! 2 Bed, 1 Bath Ranch Home With 3 Off Street Parking Spaces In Driveway. Tenant Already In Place And Lease Must Be Honored. Leased For $780 Per Mo Through 9/30/2020. Seller Has 9 Other Single Family Homes, A Condo And A Triplex Listed. Ca...

Attention Investors! 3 Bed, 1 Bath Ranch Home W...

NEW Photo of Listing #894265

$235,000 Active

  • 0.14 Acres
  • 2,400 ft²

Income Property

205 16th Ave Ct, Greeley, CO

MLS® #894265

Kittle Real Estate

Attention Investors! 3 Bed, 1 Bath Ranch Home With 2 Off Street Parking Spaces In Driveway. Only 2 Miles From Unc. Tenant Already In Place And Lease Must Be Honored. Leased For $875 Per Mo Through 9/30/2020. Seller Has 9 Other Single Family Homes, A Condo A...

Attention Investors! 3 Bed, 1 Bath Ranch Home W...

NEW Photo of Listing #894266

$210,000 Active

  • 0.14 Acres
  • 1,260 ft²

Income Property

312 16th Ave Ct, Greeley, CO

MLS® #894266

Kittle Real Estate

Attention Investors! 3 Bed, 1 Bath Ranch Home With 2 Off Street Parking Spaces In Driveway. Only 2 Miles From Unc. Tenant Already In Place And Lease Must Be Honored. Leased For $975 Per Mo Through 9/30/2020. Seller Has 9 Other Single Family Homes, A Condo A...

Old Town Four Plex! Live In One Unit And Rent T...

NEW Photo of Listing #891758

$879,000 Active

  • 0.19 Acres
  • 2,365 ft²

Income Property

205 N Sherwood St, Fort Collins, CO

MLS® #891758

David Lund

Old Town Four Plex! Live In One Unit And Rent The Others! Solid Rental History. 3 Units Leased Until July 31, 2020. $4470/ Mo Gross Rents. Blocks To Old Town And Csu. All Utilities Are Billed Back On Top Of Rents-turn Key Rental With Professional Mgmt! 3 - ...

100% Occupied 4-plex In Bustling Longmont. Corn...

NEW Photo of Listing #893858

$700,000 Active

  • 0.27 Acres
  • 3,212 ft²

Income Property

1203 S Coffman St, Longmont, CO

MLS® #893858

Illuminate Real Estate

100% Occupied 4-plex In Bustling Longmont. Corner Location On Quiet Neighborhood Street With Immediate Access To Main St. (hwy 287). Walking Distance To City Of Longmont Recreation Center And Retail Shopping. One Block From Elementary School And City Park W...

Attention Investors! Great Opportunity To Add A...

NEW Photo of Listing #894104

$340,000 Active

  • 0.28 Acres
  • 2,880 ft²

Income Property

2461 E 18th St, Greeley, CO

MLS® #894104

Kittle Real Estate

Attention Investors! Great Opportunity To Add A Triplex To Your Rental Portfolio With Tenants Already In Place! Unit 1: 3 Bed, 2 Bath, Plus A Detached 2-car Garage W/shop Space. Rented At $1,100/mo. Units 2 & 3: 2 Bed, 1 Bath. Rented At $650 & $750/mo. All ...

 

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Listing information last updated on September 16th, 2019 at 10:34pm MDT.