INVESTMENT OPPORTUNITIES IN DURANGO COLORADO

As I have discussed in several posts, the lower-end market in the Durango and Bayfield area is not real strong. In particular over in Bayfield where there are two new subdivisions, some of the builders are getting a little nervous. Unlike big cities where US Homes and Pulte Homes often times come in and build 300 to 500 homes per year, we don't have that here. Here's how it works here. Carpenter Fred builds two or three homes per year; carpenter Mark may build two or three homes per year, etc. We don't have mass building. And for Carpenter Fred and carpenter Mark, their ability to hold and sit on these homes after they're built is not the same as Pulte’s ability. Some of these builders are a little bit nervous. With Labor Day just around the corner and plenty of $200-$300,000 homes still on the market and those buyers being few and far between right now, this could be a great opportunity for an investor to pick up a brand-new home and use it as a rental. Conservative person that I am, I recommend a 30% down payment for rental properties and with that type of down payment you should be able to find something that would cash flow or maybe have a very small feed. Remember that that low-end buyer no longer qualifies for a loan and as such has been put back into the rental market so rents have been firm and vacancy rates are lower.

If the residential rental market is something new to you, please give me a call and I would be happy to mail you a copy of my 25 page white paper on Single-Family Residential Investing. This paper walks you through what is the best time to have your leases end, special clauses to be sure to include your lease how many bedrooms is the best amount and much more.