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 $900,000 - $1,000,000
Over $1,000,000
62 Properties Found. Page 1 of 6

Property Is Leased Through July 31, 2020! Great...

NEW Photo of Listing #881960

$349,500 Active

  • 0.05 Acres
  • 1,997 ft²

Income Property

1637 Westbridge Dr O-1, Fort Collins, CO

MLS® #881960

C3 Real Estate Solutions, LLC

Property Is Leased Through July 31, 2020! Great Rental Property And Very Close In Proximity To Csu! This Spacious And Functional End-unit Townhome Is Conveniently Located Near Campus And On The Bus Route. Plenty Of Room To Spread Out With Living Areas On Th...

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...

Remodeled College Rental. Don't Miss This Oppor...

NEW Photo of Listing #881464

$279,900 Active

  • 0.17 Acres
  • 1,680 ft²

Income Property

2014 7th Ave, Greeley, CO

MLS® #881464

Sears Real Estate

Remodeled College Rental. Don't Miss This Opportunity To Purchase This Up/down Duplex That Looks Like A Show Home. There Are Two 2 Bed 1 Bath Units With Separate Entrances, Kitchens, & Separate Laundry. The Upstairs Unit Features Wood Floors, New Kitchen ...

*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...

8 Unit Townhome Portfolio. All Units Feature A ...

Photo of Listing #881654

$1,800,000 Active

  • 0.17 Acres
  • 1,885 ft²

Income Property

1117 11th Ave 1-8, Greeley, CO

MLS® #881654

Schuman Companies

8 Unit Townhome Portfolio. All Units Feature A 4 Bed 4 Bath Floorplan, Private Bathrooms (suite Style), Individual Storage Lockers And Attached Two Car Garages. Units Are Each On Their Own Lot, Which Would Allow For Individual Sales In The Future. Units Ar...

Two Sided Duplex Has 4 Bedroom And 2 Baths With...

Photo of Listing #880959

$635,000 Active

  • 0.37 Acres
  • 5,412 ft²

Income Property

3713-3715 Boulder St, Evans, CO

MLS® #880959

True Abundance Prop Management

Two Sided Duplex Has 4 Bedroom And 2 Baths With Washer/dryer Hookups. Newly Paved Off Street Parking. All 4 Units Are Fully Occupied. Most Give A Days Notice For Showings.

Nice 4-plex On 2 Lots. There Is 1 Two Bedroom, ...

Photo of Listing #880766

$320,000 Active

  • 0.06 Acres
  • 2,750 ft²

Income Property

1744 7th Ave, Greeley, CO

MLS® #880766

One Way Property Management

Nice 4-plex On 2 Lots. There Is 1 Two Bedroom, 1 Bathroom Unit, And 3 One Bedroom, 1 Bath Units. New Roof, And Paint On The Exterior. Buyer To Verify Schools And Sq Ft. Call For More Details.

Lovely Single Family Investment Property In Mil...

Photo of Listing #880571

$345,000 Active

  • 0.19 Acres
  • 1,427 ft²

Income Property

1904 Springfield Dr, Fort Collins, CO

MLS® #880571

Group Horsetooth

Lovely Single Family Investment Property In Miller Brothers! Tenant Occupied Until 7/31/2019. Great Condition With Nice Hard Wood Floors, Slate Flooring In Kitchen And Dining Area. Garage Has Been Finished As Bonus Room! Brick Exterior For Low Maintenance P...

Wellington Village Apartments Includes 24 Units...

Photo of Listing #880361

$5,350,000 Active

  • 1.9 Acres
  • 54,016 ft²

Income Property

4101 Crittenton Ln, Wellington, CO

MLS® #880361

Schuman Companies

Wellington Village Apartments Includes 24 Units With Single Car Attached Garages And An Additional 20 Detached Garage Units. Units Are Comprised Of Buildings 4 And 5 (each 12 Units) Buildings Are Part Of The Master Wellington Village Hoa Which Provides Resi...

Investors - Great Rental Income Property! A Ren...

Photo of Listing #880465

$435,000 Active

  • 0.29 Acres
  • 3,120 ft²

Income Property

309-313 N 1st St, Johnstown, CO

MLS® #880465

Coldwell Banker Res-Longmont

Investors - Great Rental Income Property! A Renovated Tri-plex In Johnstown! Great Location By City Park. All 3 Units Have 2 Beds, 1 Bath & Basement. Units 313 & 311 Remodeled W/new Electrical, Plumbing, Windows, New Back Doors & Carpet. All Units Have Wash...

3 Bedrooms 2 Bathrooms At Each Unit. Unit 339 -...

Photo of Listing #880308

$439,900 Active

  • 0.15 Acres
  • 3,216 ft²

Income Property

337 Colony Pl #339, Longmont, CO

MLS® #880308

Casa Grande Realty LLC

3 Bedrooms 2 Bathrooms At Each Unit. Unit 339 - New Paint, New Carpet, New Flooring, New Kitchen Appliances, New Countertop. Unit 337 Stove And Refrigerator Belong To Tenants, Hardwood Floor In Living Room, New Vinyl In Kitchen And Bathroom/hallway.

One Owner Duplex With Consistent Rental Cash Fl...

REDUCED 4% Photo of Listing #880204

$575,000 Active

  • 0.16 Acres
  • 2,226 ft²

Income Property

1813-1815 Antero Dr, Longmont, CO

MLS® #880204

A Better Way Realty

One Owner Duplex With Consistent Rental Cash Flow Now Fully Remolded And Ready For New Owner. New Paint, Carpet, New Kitchen Cabinets Counter Tops And Flooring, New Siding And Exterior Paint. Ready For Easy Turn Key Rentals. Double 2 Car Garage And A Full U...

 

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Information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Information deemed reliable but not guaranteed by the MLS.

Listing information last updated on May 27th, 2019 at 3:42am MDT.