Single-family homes are the stronger investment in Denver’s current market. The condo segment is in a correction — prices are down 5-7% year-over-year, inventory is up over 200% since 2021, and two structural headwinds aren’t going away soon: rising HOA fees (averaging $401/month statewide) and surging insurance premiums driven by hail and wildfire exposure. These…
Rental property in Colorado offers several significant tax advantages: (1) Depreciation — the IRS lets you deduct the cost of the building (not land) over 27.5 years. On a $600,000 property where the building is worth $480,000, that’s $17,454/year in paper losses that offset rental income. (2) Operating expense deductions — mortgage interest, property taxes,…
Denver property management fees typically run 8%-12% of monthly gross rents for full-service management, plus additional fees. On a $2,000/month rental, that’s $160-$240/month. What full-service management typically covers: tenant screening and placement, rent collection, maintenance coordination, annual inspections, and lease renewals. Additional fees to budget for: leasing fee when placing a new tenant (typically 50-100%…
The best neighborhood for a Denver rental depends on your investment thesis — cash flow vs. appreciation, short hold vs. long hold, and tenant profile. Best for appreciation + stability: Washington Park, Highland, RiNo, Cherry Creek. These appreciate faster than the metro average and maintain high occupancy, but cap rates are thin (3.5-4.5%). Best for…
A 1031 exchange (named for IRS Section 1031) lets real estate investors defer capital gains taxes when selling an investment property by reinvesting the proceeds into a “like-kind” replacement property. In Colorado, where a Denver investor might have $200,000-$400,000 in appreciation on a property held since 2015, the tax deferral can be worth $50,000-$100,000 or…