Are you thinking of investing in the Fort Collins, CO real estate market? If so, we can help you succeed!
Rental property investment is a good vehicle for financial freedom. It can be a great source of passive income without you having to participate in any kind of daily work. What’s more, it can enable you to expand your investment portfolio, therefore, minimize risks.
Now, there are many things that make investing in Fort Collins ideal for potential investors. The state is relatively landlord-friendly. The tax rates are more reasonable. The real estate is more affordable than in Denver. And the city has even more jobs than job-seekers.
Are you just starting out? If so, it’s imperative to follow insider tips in order to make the right investment moves.
In this article, we here at Onsite Property Management Services will provide you a basic overview of what Fort Collins real estate is all about. Follow our recommendations to help maximize your chances of landing the right property.
What is the Fort Collins Real Estate Market Like?
There are a number of reasons that make Fort Collins one of the top real estate investment destinations in the country.
For one, the city’s real estate market has seen a steady appreciation in values. On average, properties have appreciated in value by over 3% per year for the last couple of years. Although slowed down by Covid-19, experts are of the opinion that the trend will continue even onto the future.
Two, Colorado is a relatively landlord-friendly state. No state laws exist in regards to pet laws, rekeying or payment grace periods. And generally, tenants have about 10 days to fix a lease violation or face eviction.
Three, Fort Collins is a great option for Airbnb investing. Every year, millions of tourists visit the city to tour the many attractions it offers. So, if you’re considering offering short-term rentals, Fort Collins is a great option to consider.
Four, a strong renter demand exists. Almost 50% of residents in Fort Collins live in rented premises. Renters love it for not only being affordable than Denver but also for having quick access to all big-town amenities without the cost impact.
Top Tips for Real Estate Investments in Fort Collins
Sure, Fort Collins real estate has a huge potential for investors. Be that as it may, investing in the city’s real estate market isn’t a guarantee for success. To actually succeed, you’ll need to, among other things, buy the right property in the right location.
The following tips should set you up for success.
1. Buy in the right neighborhood.
Begin by understanding how the local market is operating. Are the numbers looking up? For example, is the rental demand increasing? Are the property prices appreciating in value? Are jobs increasing? Are there any planned developments in the area?
By answering such questions, you should be able to have a good prediction of where the market is headed in the future.
Some of the best areas to invest in Fort Collins include City Center, S College Ave, and Route 392. Others are Drakes, Mountain View, Taft Hill Road, and N Shields St.
2. Calculate the rate of return.
In other words, crunch the numbers. Make as many calculations in regards to the expected rate of return as possible. The ideal investment is one that enables you to at least 1% of the total purchase cost as gross income.
So, if you buy a property for, say, $300,000, the least gross income should be $3,000 per month. You’ll also want to factor in expenses such as taxes and other operational expenses to gauge your net income.
3. Choose high-rent neighborhoods.
Generally, the goal of investing in real estate is to create wealth and earn passive income. If you are looking to maximize your return on investment (ROI), you’ll need to look for areas with high rent potential to purchase price ratio.
In other words, look for areas where you can get more buck for your bang. And at the same time, make sure to weigh any upfront costs, such as improvement expenses that may arise.
4. Make your property attractive.
After the closing, the next thing you want to do is fill it with a tenant as quickly as possible. The quicker you rent it out the quicker you can start earning a return on investment.
Chances are that your rental property won’t be the only one in that area. As such, you’ll need to stand out of the competition by making yours as appealing as you can. Now, there are many ways to make a rental property stand out.
One, take care of the property’s curb appeal. The curb appeal is what every prospective tenant will see when they come to your property. So, make sure it’s enticing. Refresh the look of the walls with a fresh coat of paint. Thoroughly clean the sidewalks, walkways, and hardscape areas. Upgrade the mailbox. And so on.
The other thing you can do to make your property attractive is to set the proper rent. Don’t make the novice mistake of overcharging your tenants so as to make more income. This can be counterproductive. Undercharging is also not an option. If you’re not sure about how to go about this, hire an experienced property management company.
5. Hire a property management company.
Have you ever managed property before? If not, hiring an experienced property management company can be a great move. A good company will help market it, screen prospective applicants, collect rent, maintain it, and even kick out difficult tenants.
In a nutshell: Real Estate Investing Tips in Fort Collins
Fort Collin’s real estate holds a high potential for great returns on investment. Regardless of what real estate model you want to pursue, there is a growing market for many types of investments in Fort Collins, Colorado.
At Onsite Property Management Services, we can put our years of experience to work for you. If you need further help, don’t hesitate to get in touch with us!