Steady growth is the key to success when you’re investing in Denver real estate. It can be disastrous trying to make too many deals at once, but by the same token, doing too few won’t get you very far. Once you have your first investment property locked in, then it’s time to start looking at another one. Subsequent deals often come a little easier, because you have experience—and the lenders will take that into account. The lenders will also take into account, of course, whatever equity or ongoing cash flow you have from your first property. The advantage of having multiple investment properties is similar to the advantage of running an apartment building—if one unit is vacant or isn’t selling, then you still have revenue from the remaining units, along with the appreciation value and the fact that any rental income is going towards paying off your mortgage. At the same time, use of a good property management service will free you from the day-to-day tasks of managing multiple properties.
Regardless of the type of Denver real estate you own, you really have two different centers of profit:
• Your rental income
• And your long-term appreciation
Denver real estate has consistently shown very good growth in value over the years, and your initial investment will grow in value over time, silently contributing to your overall wealth even as your tenants come and go and pay your mortgage for you while you receive the appreciation and the tax benefits.
Let us show you how to build leverage and slowly build your own Denver real estate empire. You may want to use our calculator tools, or continue reading to find out more about buying foreclosure properties.