Denver has been one of the fastest-growing metro areas in the United States for years. It stands out for ranking among the top ten in quality of life, as well. That is reason enough for many potential real estate investors to consider buying Denver investment properties. Take its relatively low taxes and landlord-friendly laws into account, and this looks like a great time to buy. However, some areas are better than others.
Let’s learn more about the local real estate market as a whole before we tell you which neighborhoods are the best places to look for Denver rental properties. The homes in the Denver area doubled in value from 200,000 to 424,000 dollars over the past ten years. The median home price hit 480,000 dollars at the end of 2019. That translates to roughly 7.5 percent annual appreciation rate for ten years straight. For comparison, wages only increased by about 2 percent a year.
This has driven demand for Denver rental properties by those who want to live here but can’t afford to buy a home. Denver’s growing economy continues to attract people to the area. The relative lack of affordable homes is pushing them along the Front Range while it drives up prices in affordable neighborhoods. This is why Denver was rated an 89 out of 100 by Redfin and declared one of the most competitive housing markets in the country.
Best Places To Buy Denver Investment Properties
The average rent for an apartment in Denver is $1,674, a 3% increase compared to the previous year (Rentcafe.com). However, there are both expensive and affordable neighborhoods in and around Denver, which are rated good for families and where you can buy rental properties as an investment. Here are some of the best places in Denver where you can buy investment properties. Before making your move, let’s learn more about the demographics and renting in these neighborhoods of Denver, Colorado.
Rosedale, Denver, Colorado
Rosedale is one of the best areas to buy investment properties in Denver. It is a clean & green south Denver neighborhood with parks, shops, and restaurants. The streets are usually quiet and peaceful for walking around. It is convenient to reach a nearby bus stop from most houses in the neighborhood. Rosedale received an overall grade of A from Niche.com. It received a C+ for crime and safety but a B- for public schools. It was given a score of B+ for families and A+ for nightlife. Denver investment properties in this area are mostly single-family homes, and they cost 450,000 to -500,000 dollars.
Because the neighborhood is a 20-minute drive to downtown, the suburban-feeling community has seen an influx of new apartment buildings. A single bedroom unit could rent for a thousand dollars a month. There are higher-end properties in this area due to redevelopment. These homes can hit a million dollars and rent for up to 3500 dollars a month. Median rent is 1800 dollars a month. This area is attractive to many because it is close to both Porter Adventist Hospital and large parks like Harvard Gulch Park.
Rosedale is an expensive neighborhood to live in. Rent in Rosedale is 14% higher than the average rent in Denver.
Median Property Price in Rosedale, Denver: $581,068
Rosedale home values have increased by 3.2% over the past year.
Median Property Price Per Square Foot: $354 < Denver Avg. ($374)
Median Rent in Rosedale, Denver: $2,400
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Rosedale, Denver: $70,000
Average Income From Rosedale, Denver Rental Property: $1,900/month
Chaffee Park, Denver, Colorado
Chaffee Park is another great area to buy investment properties in Denver. It is located in the northwest corner of Denver, Colorado. Chaffee Park gets a B- from Niche.com for families. It gets a B- for housing costs, a C+ for crime and schools, and an A for nightlife. This neighborhood is centrally located. Furthermore, you can reach the rest of the Denver metro area by hitting I-70 or Highway 287, both of which run along the neighborhood’s boundaries.
The neighborhood is only a twenty-minute drive to downtown Denver. Most of Denver investment properties tend to be single-family homes, but condos are popular, especially in dense urban neighborhoods like Chaffee Park. This area offers a large number of one and two-bedroom condos. These are often more expensive than single-family homes in the suburbs. For example, you might pay 300,000 dollars for a one-bedroom condo and 400,000 dollars for a two-bedroom condo.
However, condos minimize the maintenance required by landlords, and Chaffee Park has many newer condo projects that will hold their value better than older apartment buildings. Note that the medium property value in this area is 260,000 dollars, while rents average 1,300 dollars a month. If you do buy one of the few single-family homes that hit the market, rents can hit 2,000 to 3,000 dollars a month.
Chaffee Park is one of the most affordable neighborhoods in Denver where you can buy a rental property. Rent in Chaffee Park is 27% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in Chaffee Park are less expensive – the avg. rent is 43% lower than Downtown Denver.
Median Property Price in Chaffee Park, Denver: $392,130
Chaffee Park home values have increased by 1% over the past year.
Median Property Price Per Square Foot: $292 < Denver Avg. ($374)
Median Rent in Chaffee Park, Denver: $1,300
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Chaffee Park, Denver: $60,000
Average Income From Chaffee Park, Denver Rental Property: $1,200/month
Villa Park, Denver, Colorado
Villa Park is quite an affordable neighborhood where you can invest in Denver investment properties. It is located in West Denver about two to three miles west of Downtown Denver. This neighborhood contains three small creeks: Lakewood Gulch, which provides the northern border for the neighborhood, Dry Gulch, and Weir Gulch. Because of the creeks and a general elevation gain towards the west, Villa Park is a very hilly neighborhood.
Villa Park has had a reputation as one of the cheapest urban neighborhoods to live in. It offers a short commute to downtown. Yet you can enjoy a number of parks and shopping venues in the area. For example, there is a massive greenbelt that runs along the north edge of the neighborhood in addition to the namesake Villa Park in the middle of the community.
If you’re looking for Denver rental properties, the sheer number of condos in the area is a point in its favor. You can find two-bedroom condos for 200,000 to 300,000 dollars. Newer two bedroom, two bath condos are available for 300-400,000 dollars. It receives a C+ for crime and safety and public schools. It was given a B- for families and as an overall score from Niche.com.
Rent in Villa Park is 17% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in Villa Park are less expensive – the avg. rent is 9% lower than Downtown Denver.
Median Property Price in Villa Park, Denver: $377,350
Villa Park home values have increased by 2.9% over the past year.
Median Property Price Per Square Foot: $330 < Denver Avg. ($374)
Median Rent in Villa Park, Denver: $1,800.
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Villa Park, Denver: $66,000
Average Income From Villa Park, Denver Rental Property: $1,950/month
Glenwood Springs, Colorado
Glenwood Springs is another great place to buy investment properties in Colorado if you can’t find one in the city of Denver. Glenwood Springs is a scenic three-hour drive 160 miles west of Denver on Interstate-70. It is a resort city in Colorado known for its hot springs – best known as a historic destination for vacationers with diverse natural amenities. The reason it makes this list is the incredibly expensive Denver housing market, which is pushing people to the edges. In this case, construction along the Front Range is booming because it is easier to build and drive on relatively flat foothills than live in the mountains.
This is driving people to the fringes of the Denver housing market. Then there are those who want to live close to nature and enjoy the outdoors who move further out to escape the crowds. This explains the skyrocketing housing prices in Glenwood Springs. Glenwood Springs is located along the Colorado River. It is notable for having more than a dozen natural springs in the area. Glenwood Caverns Adventure Park is the only mountaintop amusement park. The area is dotted with spas, natural steam baths, and lakes. It offers year-round outdoor activities. This attracts new residents as well as tourists.
If you want to pick up Denver investment properties, know that this is an expensive market. It is hard to find properties in the 300,000 to 500,000 dollar price range. The average home costs around 550,000 dollars, but prices will go up due to the limited supply. Glenwood Springs allows for short-term rentals if you get a business license, register with the city, and collect the necessary taxes. You are generally not allowed to rent out accessory dwelling units as a short-term rental. Residents are fairly evenly split between owning (52%) and renting (48%) their home. The average rent of $1,247/month is roughly equal to the state average.
Median Property Price in Glenwood Springs: $516,216
Glenwood Springs home values have increased by 4.4% over the past year.
Median Property Price Per Square Foot: $390 < Denver Avg. ($374)
Median Rent in Glenwood Springs: $1,300
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Glenwood Springs: $61,000
Average Income From Glenwood Springs (Denver, CO) Rental Property: $1,250/month
Hampden South, Denver, Colorado
Hampden is considered as one of the best places to live in Colorado. Therefore, it is also a great place for investing in Denver rental properties. The neighborhood is quiet and calm with access to a lot of green spaces around. It’s close to state parks and some areas have breathtaking views of the mountain range. Hampden South neighborhood received an A from Niche.com. Schools and housing prices rated B-. Note that this makes Hampden schools better than average for the Denver area. It received a grade of C for crime rates. It gets an A+ for nightlife and B+ for families.
Many people move here for the schools, affordable homes, and massive green spaces like Cherry Creek State Park. The community has access to light rail, though it is only ten miles from downtown. It is a few minutes drive from north of the city of Centennial and about an hour north of beautiful Colorado Springs The average home here costs around 300,000 dollars, roughly 60 percent of the Denver median home price. This means you could buy three Denver investment properties in Hampden instead of two homes elsewhere. Yet you receive around 1400 dollars a month in income.
Rent in Hampden South is 5% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in Hampden South are less expensive – the avg. rent is 26% lower than Downtown Denver.
Median Property Price in Hampden South, Denver: $449,717
Hampden South home values have increased by 2.8% over the past year.
Median Property Price Per Square Foot: $265 < Denver Avg. ($374)
Median Rent in Hampden South, Denver: $1,450
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Hampden South, Denver: $90,000
Average Income From Hampden South, Denver Rental Property: $1,590/month
Mar Lee, Denver, Colorado
Mar Lee is an urban neighborhood in Denver, Colorado. Properties range in cost from 130,000 to 600,000 dollars. Mar Lee is a typical southwest Denver neighborhood similar to Ruby Hill or Athmar or Westwood. There are a lot of restaurants, coffee shops, and parks in this neighborhood. The average rent is just around a thousand dollars a month.
There are relatively few rentals available for newcomers because those who can afford the quarter-million-dollar condos and starter homes buy. The area received a C+ for its public schools, an average rating for the area. It gets a C+ for housing given the relative cost. However, it has an amazing nightlife. You’ll find that the rental market is dominated by singles and childless couples. It is one of the best places to buy Denver investment properties.
Rent in Mar Lee is 40% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in Mar Lee are less expensive – the avg. rent is 53% lower than Downtown Denver.
Median Property Price in Mar Lee, Denver: $350,514
Mar Lee home values have increased by 3.2% over the past year.
Median Property Price Per Square Foot: $326 < Denver Avg. ($374)
Median Rent in Mar Lee, Denver: $1,125
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Mar Lee, Denver: $57,000
Average Income From Mar Lee, Denver Rental Property: $1,100/month
Gateway – Green Valley Ranch, Denver, Colorado
The Gateway – Green Valley Ranch neighborhood is a thirty-minute drive to downtown Denver. It was annexed to Denver from Adams County in September 1973. According to Areavibes, this neighborhood ranks #9 among the best places to live in Denver. Penia Boulevard runs through the western side of the community, while Highway 70 is just south of it. Rocky Mountain Arsenal sits on the northwestern corner of the community. The neighborhood received a grade of C for both its schools and crime and safety, but it was given a B- for housing. It is considered a great place to raise kids, resulting in a B- for families from Niche.com.
Rents range from 1500 to 3500 dollars a month. Condos can be purchased for 200,000 to 450,000 dollars, while single-family homes cost 450,000 to 650,000 dollars. The area has a suburban feel. And around three-quarters of residents own their homes. On the other hand, this creates a shortage of rental properties for newcomers to the area. You can rent out starter homes for 2000 dollars a month, while larger homes rent for 2500 to 3500 dollars a month.
Rent in Gateway – Green Valley Ranch is 1% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in Gateway – Green Valley Ranch are less expensive – the avg. rent is 23% lower than Downtown Denver.
Median Property Price in Gateway – Green Valley Ranch, Denver: $374,825
Home values have gone up 3.1% over the past year.
Median Property Price Per Square Foot: $326 < Denver Avg. ($374)
Median Rent in Gateway – Green Valley Ranch, Denver: $1,700
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in Gateway – Green Valley Ranch, Denver: $76,750.
Average Income From Gateway – Green Valley Ranch, Denver Rental Property: $1,650/month
West Colfax, Denver, Colorado
West Colfax neighborhood is located in the West Denver area. It is defined by Colfax Avenue, a major thoroughfare before the interstate highways were built. This neighborhood was built a few years later than East Colfax, though both are roughly a century old. The neighborhood contains many single-family homes, condos, and businesses. This historic neighborhood fell into disrepair, but it is experiencing a wave of redevelopment. It is now home to one of the newest arts districts in Denver. It saw an influx of creatives because of its relative affordability.
It is one of the best places to buy Denver investment properties. Renters constitute more than 70% of the people living in West Colfax. Home values in West Colfax have increased by 2.6% over the past year. You can buy Denver rental properties here for as little as 200,000 dollars, though new luxury homes approach the two million dollar mark. West Colfax is primed for a rebound. It is only twenty minutes from downtown Denver. Many move here because apartments can be found for as little as a thousand dollars a month, though luxury properties rent for five thousand dollars a month. It is relatively unaffordable for locals, because rents are much higher than the prevailing wage.
Crime and safety was ranked a C- by Niche.com, but the public schools were rated a C+. The area gets an A+ for its nightlife. We think this is a great place for real estate investors who want to see significant appreciation. It is also one of the best opportunities for those who want to take advantage of the short-term rental market. This neighborhood offers nearly 66 percent Airbnb occupancy rates and rental income of up to four thousand dollars a month.
Rent in West Colfax is 40% lower than the average rent in Denver. As compared to Downtown Denver, the rental properties in West Colfax are less expensive – the avg. rent is 53% lower than Downtown Denver.
Median Property Price in West Colfax, Denver: $580,924
West Colfax home values have increased by 2.6% over the past year.
Median Property Price Per Square Foot: $392 > Denver Avg. ($374)
Median Rent in West Colfax, Denver: $1,950
Average Rent in Denver: 1,674
National Average Rent: $1,468
Average Household Income in West Colfax, Denver: $66,000
Average Income From West Colfax, Denver Rental Property: $1,900/month
Should You Invest In Denver Rental/Investment Properties?
Denver has been a steadily appreciating real estate market for years. There are neighborhoods in this rapidly growing Denver metro area that offer significant rental income, appreciation, or both, that make them ideal for real estate investors. We’ve shared recommendations at both ends of the market so that you can find an area to invest in that fits your budget and preferred renter profile. Rental property investors can get a longer-term guarantee from tenants, proving security during any potential economic hit such as the recent viral outbreak.
After a remaining almost flat throughout 2019, with a mere 1% rise in prices, the Denver real estate market is showing little signs of gains. Metro Denver home prices, after years of significant gains, are going as flat as last year. Despite a few slight shifts in the market last year, the trends demonstrate that this spring’s market was shaping up to be a scorcher. According to realtors, as inventory is declining in this region, it can result in the upswing of home prices.
The value of your Denver investment properties will appreciate 3-4% annually on average over the long term. We have seen a significant amount of real estate appreciation in Denver over the past years. The average annual home appreciation rate over the past ten years has been around 7% (top 10% nationally for real estate appreciation).
Denver area has a low unemployment rate of 2.3% as of Dec 2019, according to the U.S. Bureau of Labor Statistics. A third of the population of Denver-metro area rents. All these are excellent signs of investors looking to buy a rental property in Denver. The median sale price in April was $446,500, trending up 7.59% year-over-year. The Denver real estate market forecast is that it will very much still be in favor of sellers. According to some experts, you shouldn’t expect any sizable or significant gains based on current conditions – short term impact of COVID-19 pandemic.
Here are some more reasons to invest in Denver rental properties.
Growing population – It is the 19th-most populous city in the nation.
The current metro area population of Denver in 2020 is 2,827,000, a 1.33% increase from 2019 – Macrotrends.net.
Ranked as a Beta world city by the Globalization and World Cities Research Network.
In 2016, Denver has named the best place to live in the United States by U.S. News & World Report.
Denver is in the top 10% nationally for real estate appreciation.
3.8% 1-yr forecast till Feb 2021.
The average days on market is 83.
Colorado has had the lowest rate of mortgage delinquencies in any state.
A third of Denver-metro area rents.
Denver South is home to 7 Fortune 500 companies.
Denver was named 6th on Forbes Magazine’s “Best Places for Business and Careers.”
A low unemployment rate of 2.3% as of Dec 2019 – U.S. BLS.
Denver Turnkey Rental Properties
Are you looking for a turnkey rental property in Denver? NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in Denver and many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your rental property in Denver.
Consult with one of the investment counselors who can help build you a custom portfolio of Denver turnkey rental properties in some of the best neighborhoods. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Denver turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Denver rental market
https://www.rentcafe.com/average-rent-market-trends/us/co/denver
After a decade of dramatic gains, metro Denver home prices expected to slow in 2020
https://www.redfin.com/city/5155/CO/Denver/housing-market
Analysis of neighborhood demographics and apartment prices
https://www.zumper.com
https://denvermetrodata.org
https://www.point2homes.com/US/Neighborhood/CO/Denver
West Colfax, Denver, Colorado
https://www.trulia.com/n/co/denver/west-colfax/81851/
https://www.niche.com/places-to-live/n/west-colfax-denver-co/
Gateway – Green Valley Ranch
https://www.trulia.com/n/co/denver/gateway-green-valley-ranch/212548/
https://www.niche.com/places-to-live/n/gateway—green-valley-ranch-denver-co/
https://www.trulia.com/for_rent/168763_nh/SINGLE-FAMILY_HOME_type/
Chaffee Park
https://www.niche.com/places-to-live/n/chaffee-park-denver-co/
https://www.zillow.com/chaffee-park-denver-co/
https://www.trulia.com/n/co/denver/chaffee-park/81788/
Rosedale, Denver
https://www.niche.com/places-to-live/n/rosedale-denver-co/
https://www.trulia.com/n/co/denver/rosedale/81831/
Villa Park
https://www.getbellhops.com/blog/best-up-and-coming-neighborhoods-in-denver/
https://www.niche.com/places-to-live/n/villa-park-denver-co/
https://www.zillow.com/villa-park-denver-co/
Glenwood Springs
https://www.colorado.com/cities-and-towns/glenwood-springs
https://www.zillow.com/glenwood-springs-co/home-values
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