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 Under $100,000 $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 Over $1,000,000
48 Properties Found. Page 1 of 4

Beautiful Home With Southern Main Entry Located...

NEW Photo of Listing #896728

$319,000 Active

  • 0.18 Acres
  • 1,770 ft²

Income Property

1853 6th St Sw, Loveland, CO

MLS® #896728

Advantage Property Management

Beautiful Home With Southern Main Entry Located On Corner Lot! Great Outdoor Space With Generous Backyard, Covered Patio, Two Level Deck, And Mature Landscaping. Located Just Blocks From Loch Lon Park, And Elementary, Middle And H.s. Wonderful Investment...

Downtown Multifamily, A Block Away From South M...

NEW Photo of Listing #898249

$1,175,000 Active

  • 0.12 Acres
  • 3,360 ft²

Income Property

327 3rd Ave, Longmont, CO

MLS® #898249

RE/MAX Traditions Commercial

Downtown Multifamily, A Block Away From South Main Station. Great Amenities Within A Few Hundred Feet, Including Downtown Longmont Shopping And Restaurants. Remodeled And Updated, Boasting Low Vacancy Rates, It Supports Competitive Rents. (actual Rents Sh...

*investor Purchase Only Tenants Lease Is Throug...

NEW Photo of Listing #898272

$259,500 Active

  • 0.13 Acres
  • 1,090 ft²

Income Property

3104 Rock Point Ct, Evans, CO

MLS® #898272

Henderson Management & Real Es

*investor Purchase Only Tenants Lease Is Through 8/31/2020, Must Have 12 Hours Notice For All Showings* Just Minutes From Highway 34 This Large 3 Bedroom, 2 Bathroom Unit Of A Duplex Features A Fenced Backyard With Sprinkler System, Attached 2 Car Garage, O...

Three Separate Houses On One Lot. Lots Of Upda...

NEW Photo of Listing #898821

$400,000 Active

  • 0.05 Acres
  • 2,664 ft²

Income Property

1516 7th Ave, Greeley, CO

MLS® #898821

One Way Property Management

Three Separate Houses On One Lot. Lots Of Updates And Good Rental History. Close To Downtown And Unc. Located In Opportunity Zone Which Has Major Tax Advantages!! See Link Https://choosecolorado.com/programs-initiatives/opportunity-zones/ Seller Is A Lice...

Fully Leased 4 Plex With Reputable Tenants Only...

NEW Photo of Listing #898828

$842,500 Active

  • 0.25 Acres
  • 3,432 ft²

Income Property

801 Aztec Dr, Fort Collins, CO

MLS® #898828

Group Centerra

Fully Leased 4 Plex With Reputable Tenants Only A Few Minutes From Old Town Fort Collins & Csu. Make It An 8 Plex-807 Aztec Drive 4 Plex Is Also Available For Sale. Zero Vacancy, No Hoa, Currently Self Managed. Each 2 Bd Unit Backs To Farmland W/foothills V...

Fully Leased 4 Plex W/reputable Tenants Only A ...

NEW Photo of Listing #898829

$842,500 Active

  • 0.25 Acres
  • 3,432 ft²

Income Property

807 Aztec Dr, Fort Collins, CO

MLS® #898829

Group Centerra

Fully Leased 4 Plex W/reputable Tenants Only A Few Minutes From Old Town Fort Collins & Csu. Make It An 8 Plex-807 Aztec Drive 4 Plex Is Also Available For Sale. Zero Vacancy, No Hoa, Currently Self Managed. Each 2 Bd Unit Backs To Farmland W/ Foothills Vi...

You'll Instantly See The Care This Home Has Rec...

NEW Photo of Listing #898942

$90,000 Active

  • 0.04 Acres
  • 1,680 ft²

Income Property

4412 E Mulberry St 329, Fort Collins, CO

MLS® #898942

TopCO Realty

You'll Instantly See The Care This Home Has Received! Only A Few Years Old, With Great Personal Touches. New Paint And Ceiling Fans Installed. Easy Access To The I-25. Buyer Must Go Through Cloverleaf For Lot Lease.

Unique 4-plex Opportunity Near Unc-this Propert...

NEW Photo of Listing #898972

$850,000 Active

  • 0.22 Acres
  • 4,920 ft²

Income Property

2033-2035 9th Ave, Greeley, CO

MLS® #898972

Group Harmony

Unique 4-plex Opportunity Near Unc-this Property Consists Of 2 Bldgs: A Single Family Detached House With 4 Bdrms, 2 Baths And A 3 Story Apt. Bldg W/ 3 Units, Each W/ 4 Bdrms And 2 Baths. This Property Has Had/is Having Major Cosmetic Renovations Done To Up...

Don't Miss This Fantastic Opportunity! All Bric...

NEW Photo of Listing #898694

$395,000 Active

  • 0.21 Acres
  • 1,700 ft²

Income Property

19 N Idaho Ave, Johnstown, CO

MLS® #898694

Clary Real Estate

Don't Miss This Fantastic Opportunity! All Brick Ranch Style Duplex - Each Unit Is 2 Bedroom, 1 Bath, 1-car Attached Garage. Units Are Connected By Garage. Newer Vinyl Windows, One Unit Has Been Updated And Is Handicap Accessible. Each Unit Has Private Fenc...

Rare Investment Opportunity In Berthoud! Duplex...

NEW Photo of Listing #896154

$369,900 Active

  • 0.18 Acres
  • 1,824 ft²

Income Property

1025 3rd St, Berthoud, CO

MLS® #896154

Bliss Realty Group

Rare Investment Opportunity In Berthoud! Duplex With 100% Rental Occupancy Over 12 Years. Plenty Of Tenant Parking Available. Each Unit Has A Nice Living Area, Eat In Kitchen And Free- Standing Fire Place, No Hoa! Great Income Potential!

Located In A Qualified Opportunity Zone, This F...

NEW Photo of Listing #897265

$235,000 Active

  • 0.16 Acres
  • 2,394 ft²

Income Property

314 E Beaver Ave, Fort Morgan, CO

MLS® #897265

One Way Property Management

Located In A Qualified Opportunity Zone, This Fort Morgan Duplex Is Not Only A Good Performing Asset, But Also Has The Potential To Reduce Or Eliminate Some Tax Burden. Side By Side Duplex, Close To Downtown. This Unit Features 2, 2 Bedroom 1 Bathroom Units...

 

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Information deemed reliable but not guaranteed by the MLS.

Listing information last updated on November 19th, 2019 at 12:04am MST.