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
57 Properties Found. Page 1 of 5

Outstanding West Facing Income Property With At...

NEW Photo of Listing #884722

$525,000 Active

  • 0.19 Acres
  • 3,720 ft²

Income Property

1330 Terry St, Longmont, CO

MLS® #884722

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, ...

Located Near Lincoln Park, Greeley Recreational...

NEW Photo of Listing #888109

$260,000 Active

  • 0.22 Acres
  • 2,207 ft²

Income Property

1324 12th Street, Greeley, CO

MLS® #888109

Kristine K Woody

Located Near Lincoln Park, Greeley Recreational Center, And Greeley's Downtown Amenities. The Property Has Newer Plumbing And Electrical, New Roof, And Plenty Of Off Street Parking. There Is A Detached Garage For Rent Or Owner Use, Metered Separately For G...

Perfect All Brick Well Maintained Duplex W/ Att...

NEW Photo of Listing #888486

$489,900 Active

  • 0.28 Acres
  • 1,906 ft²

Income Property

709-713 Dawn Ave, Fort Collins, CO

MLS® #888486

Home Savings Realty

Perfect All Brick Well Maintained Duplex W/ Attached 1-car Garages For Each Unit. Separate Fenced Back Yards. Each Unit Includes 2 Bdrms. 1 Bath, Bright Open Floor Plans, Large Eat-in Kitchens, Living Room And Laundry. Great Consistent Rental Income. Opport...

Over/under Duplex In Fort Collins Just Minutes ...

NEW Photo of Listing #887563

$460,000 Active

  • 0.22 Acres
  • 1,929 ft²

Income Property

1730 Whedbee St, Fort Collins, CO

MLS® #887563

Windermere Fort Collins

Over/under Duplex In Fort Collins Just Minutes To Old Town, I-25, And Spring Creek Park! Off Street Parking, Good Sized Backyard, And Amazing Location Have Kept This Property Rented For The Owners. This Property Has A Certificate Of Occupancy From The City ...

Beautiful 2-bed 2-bath Condo In Sought After Fo...

NEW Photo of Listing #888200

$280,000 Active

  • 1,134 ft²

Income Property

5620 Fossil Creek Pkwy 5204, Fort Collins, CO

MLS® #888200

Kittle Real Estate

Beautiful 2-bed 2-bath Condo In Sought After Fossil Creek Condos! Great Investment Opportunity! Fantastic Tenant Already In Place Thru July 2021! Complex Located Next To Fossil Creek Park & Features A Clubhouse, Pool, Hot Tub, Exercise Room, Green Spaces & ...

Great Multi-unit Opportunity! 2 Rent-able Apart...

NEW Photo of Listing #888213

$425,000 Active

  • 0.13 Acres
  • 4,100 ft²

Income Property

818 23rd Ave 815-818, Greeley, CO

MLS® #888213

Northern Colorado Real Estate

Great Multi-unit Opportunity! 2 Rent-able Apartments With The Possibility Of Another Added, Plus An Industrial Work Space With 3 Phase Power And Over Head Door. Great For Live/work Or Cash Flow Investment. Rare Opportunity To Own A Property That Has Both In...

Investment Opportunity To Own A 14 Unit Apartme...

NEW Photo of Listing #885894

$3,000,000 Active

  • 0.62 Acres
  • 6,881 ft²

Income Property

610-612 Stover St, Fort Collins, CO

MLS® #885894

Doberstein Lemburg Commercial

Investment Opportunity To Own A 14 Unit Apartment Property In The Old Town Fort Collins Area. With Rental Vacancies At Historic Lows And Both Colorado State University And Fort Collins Growing In Record Numbers, Apartment Rates Are Projected To Continue To...

Located In Southeast Fort Collins In The Stetso...

NEW Photo of Listing #888140

$330,000 Active

  • 0.07 Acres
  • 2,579 ft²

Income Property

2127 Copper Creek Dr A, Fort Collins, CO

MLS® #888140

Henderson Management & Real Es

Located In Southeast Fort Collins In The Stetson Creek Subdivision This Beautiful 2 Bed, 2.5 Bath Townhome Features Over 1600 Sq. Ft. Of Finished Living Space With An Unfinished Basement For Storage! Built In 2001 This Home Features A Bright And Open Living...

Investment Alert!. Tri Plex Unit Located Close ...

NEW Photo of Listing #881316

$379,000 Active

  • 0.22 Acres
  • 4,436 ft²

Income Property

1719 6th Ave, Greeley, CO

MLS® #881316

RE/MAX Infinity

Investment Alert!. Tri Plex Unit Located Close To Unc. 2 Units Up And 1 Unit Down, Unfinished Basement Area To Add A 4th Unit Or Rent Out For Storage. Flex Room In Middle Of The 2 Upstairs Units Can Be Used To Expand The Units For More Rent Or Have A Pool R...

Hard To Find Duplex! Don't Miss Out! Charming F...

NEW Photo of Listing #884422

$510,000 Active

  • 0.17 Acres
  • 1,792 ft²

Income Property

221 5th Ave, Lyons, CO

MLS® #884422

River Cliff Realty, LLC

Hard To Find Duplex! Don't Miss Out! Charming Front-to-back Style 2-unit Property. Each Side Is A Bright 2 Bedroom With 1 Bathroom And Large Patio. Lovingly Surrounded By Beautiful Elm,spruce,crab-apple,and Box-elder Trees Which Offer Added Privacy. Perfect...

*investment Purchase Only*tenant Occupied Must ...

Photo of Listing #881495

$290,000 Active

  • 0.22 Acres
  • 1,792 ft²

Income Property

1131 Tupelo Dr, Loveland, CO

MLS® #881495

Henderson Management & Real Es

*investment Purchase Only*tenant Occupied Must Have 12 Hours Notice For All Showings* Home Needs A Little Cosmetic Tlc But Is In A Great Location On A Large Lot. This 3 Bed, 3 Bath Ranch Style Home Has A Large Fenced Backyard With A Sprinkler System, A Huge...

 

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Listing information last updated on July 19th, 2019 at 3:04pm MDT.