Boulder Investment Property

College Funds And Retirment

Kitchen
You don’t need the fanciest kitchen or appliances when it comes to a good cash-flowing Boulder investment property

Yesterday,  I was speaking with Andrew, another Realtor. He mentioned he has three investor closings this month.  More importantly, for each of those clients it is not their first Boulder investment property.  One buyer is on number six, another her fourth.  Why the attraction to investment real estate? Because it has the power to make you wealthy, to fund a college education, to allow you to retire young.

Downside To Investment Real Estate

Most articles start out with all the good news.  Why not explain the risks associated with purchasing Boulder investment property first.  Of course, one need only look back a few years to the recession to understand that real estate does not always go up in value.   But this post does not look at growth in value to justify investment – so it is a wash imho.

Another concern with Boulder investment property is it is more time consuming than say purchasing stocks or maintaining an IRA account.  Your property will require showings to tenants, occasional repairs, paperwork and maintenance — all hands on activities.

Avoid 3 Common Mistakes In Boulder Investment Property

  1. One of the biggest mistakes investors make is putting off maintenance in favor of profits.  Repairs are far more expensive than maintenance. Have the HVAC cleaned and inspected annually rather than face the sudden need for a new furnace on the coldest day of winter (when everyone is suddenly calling for the same service).
  2. When it comes to getting good tenants in your Boulder investment property, it is critical to thoroughly screen your potential renters.  True story. I had an applicant who sounded great. I called her reference, the “landlord” said she was the best tenant ever. So I asked, “Why are you letting this one get away?” There was an uncomfortable pause.  I realized the person was pretending to be the landlord, she hadn’t thought of an answer to this question. I did some more research and found out the applicant was being evicted from her current rental, her friend lied as a reference, and the actual owner warned me to avoid the tenant. Moral of the story: be certain to have a thorough approval process which might include background check, credit check, written application, security deposit and always check references.
  3. Get Rich Quick.  Boulder investment property is a great way to create retirement or college income – over the long term.  Too many investors think they will quickly flip a house like the folks on television or be all set in a day.  The best strategy for Boulder investment property is patience.

Upside To Investment Real Estate

swimming pool
Clients of mine market the swimming pool on their Boulder investment property

There are plenty of upsides to investing in Boulder investment property.  The biggest is that over time, between the investor paying in and in-coming rents, the property will be paid off – free and clear.  Especially with utilization of a 15 year accelerated mortgage, investors can create a monthly income stream.  One investment property per child is plenty to cover the costs of college tuition, books, room and board.

Or, when the monthly income stream of the investment is no longer necessary, the property can be sold for profit.  Or, better yet, keep the investment property and pass it along to family in a will.  Boulder investment property is a great way to create wake-up money – the opportunity to take a month off and travel. Or pay for a wedding or special event.   Now is a great time to consider your next Boulder investment property.    Give me a call today!

 

Leave a Comment