4 Questions To Ask When You Are Investing In Colorado Real Estate

If you’re considering getting into real estate investing in Colorado, and becoming a landlord, there are a few questions 4 Questions To Ask When You Invest In Colorado Real Estatethat you should be asking. Many people start out by buying a property and living there, then rent it out down the line. Being a landlord is a lot of work and responsibility so these are the 4 questions to ask before you jump in.

Average house price

Start out with do you know the average price for houses in the area where you want to buy? Of course you probably want to do that anyway since you have to come up with a way to buy, but not knowing can mean you pay too much for a property. Also, ask yourself why you want to buy in the first place? American dream? Investment only? Or another reason?

Average rent for homes

Next, do you know the average rent for homes where you want to buy? This is really important for a few reasons. First, if you are planning on paying all or part of the mortgage with the rental income, you need to know that your expectations meet your needs. You should also know the average rents because that will tell you who will be able to rent your property. If you fix it up like the Taj Mahal but rents in the area will only support Section 8 housing, you will probably lose a lot of money and end up with tenants who may not keep your investment in the condition you expect.

Have a plan

Do you know how long you plan on living there, and how long you plan to keep the rental property? Will you live in the area after you make it a rental, or move away and manage it from a distance? All in all, you should have a concrete plan in place about how to live in, move out of, get it rented and manage the rental property. If you don’t, get one.

Will you hire propety management?

That last managing part leads to this question: will you hire a property manager and if so, have you figured in that cost? What about the cost of repairs, now and later when it’s a rental? Do you have the savings to manage? What about repairing it while it’s vacant and not generating any income?

Have you asked yourself any of these? If not, these 4 questions to ask will help you figure out the answers you need before you buy.

Looking for a great Denver Property Management company? Give us a call today! 303-452-5853

The Hidden Costs of Buying a Second Home or Vacation Property in Colorado

There can be hidden costs to buying a second home or vacation property!
While there are great perks to having a second home or a vacation property, like knowing you have somewhere to go and escape the day to day stresses, and you can always rent it out to help with the expenses, be aware that there are hidden costs. If you’re thinking about buying a second home or vacation property in Colorado, keep this in mind.

The Hidden Costs of Buying a Second Home or Vacation Property in ColoradoIf you’re planning on living in or renting your vacation property, you’ll have to furnish it. So there is a hidden cost to furnish the home. In order to keep this cost lower, look for things like estate sales or higher end second hand furniture stores. Just be sure to get furnishings that are in good shape, especially if you want to rent it out. Shabby chic is cute, shabby isn’t.

Next, cleaning costs. Yes, after it is rented do you want to be the one that has to travel to clean it? Keep in mind that it’s not just a skim over cleaning. Remember what your guests are paying to stay there and think about what you would expect if you were in their shoes. Hiring a cleaning company is definitely necessary.

If you are buying a second home and you decide to rent it out, things will wear out, and you will have to replace things like carpeting and flooring, appliances, paint, caulk, anything you can think of. Then, of course you’ll have the repairs to broken plumbing or electrical or heating/air conditioning. Some of these are really cheap fixes, others not so much. Spring summer and fall you may just have to worry about cutting the grass. If you think that can slide, just don’t do it and wait to see how long it takes your neighbors to complain! These are some of the hidden costs to buying a second home or vacation property.

Speaking of plumbing and electrical, you will now have a second set of bills for electricity, gas/oil, water, sewer, trash collection and other fees. Don’t forget real estate taxes, homeowners insurance and homeowner association fees. If you hire a property management company, there are fees involved with their management as well.

Owning a second property is fun and can make you some extra money, but go into it with eyes wide open.

Colorado Real Estate – Swamp Coolers versus Air Conditioners

Air conditioner or swamp cooler? Most people are probably asking what the heck is a swamp cooler. In Colorado real estate they are not uncommon. They have some good points and bad, here is some information about them so you can decide if they will work for you.

Colorado Real Estate - Swamp Coolers versus Air ConditionersA “swamp cooler” is an evaporative cooling system typically used in the southwest US. They work best in drier climates. They stop cooling once outdoor humidity rises. A conventional air conditioning system removes humidity from the air, while a swamp cooler adds moisture to the air. It does this by using water to cool hot outdoor temperatures.

If you are looking to change your current system from one to the other, what should you consider? Is it feasible to convert existing swamp coolers to conventional air conditioning units, or should you simply upgrade or replace the current swamp coolers? There are definite advantages to both systems, but here is what you need to know about swamp coolers. Swamp coolers use up to 75% less electricity than a comparable air conditioning unit. Given the cost of electricity, this is not a small issue to consider. They also use outside air, not re-circulated air, so the air inside the unit is fresher, and are less expensive to maintain and repair.

Swamp coolers do use less electricity, but they use a lot of water. This can be a consideration during an extended drought. While they are less expensive to maintain, they need more frequent maintenance. They also require open windows, and can be a problem for those who suffer seasonal allergies or have security concerns.

Balancing the pros and cons with what is important to you will help you make a good decision. In a low humidity, safe and low allergen area, it would seem that a swamp cooler is the way to go to cool your home.

Colorado Real Estate Market- Sell Your Home Now and Move Up

In Colorado the real estate market is doing well and so you might want consider now a good time to sell your home now and move up.

Planning your real estate move is a smart thing to do. If you own a home in Colorado, you know that Colorado real estate is heating up and your home is worth more than just a few years ago. So, should you sell now and move up? The answer may very well be yes!

Colorado Real Estate Market- Sell Your Home Now and Move UpThe Colorado real estate market is HOT. Homes in the middle price range are selling fast and for top dollar. You can sell your home now without worrying about whether you will get stuck with two mortgages. So, if you’ve outgrown your current home or need to move into a new neighborhood or just want to move up, now is the time. It may take some finesse to time things just right, but a good realtor can help you.

A good strategy is to start with selling your home. Since the Colorado real estate market is moving fast, you will probably sell quickly. Talk to your realtor and take her advice on pricing, staging and making your home look its best. That way you get top dollar. Your realtor will also be able to give you an idea of how much time it will take to sell your home now, and get to settlement.

That will give you the amount of time you have to buy a new home. Since you will be dealing with a strong Colorado real estate market, take the time to talk with your bank or mortgage company about getting pre-qualified for your next mortgage. It’s a good strategy in buying because you go in with your financing in order. It makes you a good prospect for your next home.

You may have a little overlap, and that can be handled in one or both of your sales contracts. Depending on who is buying your home, you may be able to negotiate staying in the home a day or two past settlement. Take it as it comes and get your realtor to help. Now is a great time to move up, so prepare to enter the hot Colorado real estate market and sell your home now!

Looking for a GREAT Colorado Realtor to help your move along? Give Tena a call TODAY! 303-452-5853

Colorado Real Estate – Why You Need a Realtor!

It is said that the Colorado real estate market is a seller’s market, so why bother with a realtor? You have a home to sell and are wondering “why don’t I just do it myself?”

Why? Because you still need a professional in your corner!

In the past, home values were very overvalued. The market has changed much in the last several years and prices have adjusted. The problem is that many homeowners’ ideas of value haven’t adjusted low enough. So, even if you adjusted your thinking from before the housing bubble burst, you still probably inflate the value. Yes, others have had some bidding war success which brought the value above asking. Are those homes in the same shape as yours? Possibly not and only a realtor can tell you whether your idea of the value of your home is too high.

Colorado Real Estate - Why You Need a Realtor!You look at your home every day and most days if it’s clean, you’re happy. Selling a home means that clean isn’t enough. It better be clean, but it needs to be less cluttered, less personalized and staged just so to get that best offer. Do you know how to do that? What you see as a treasured photo collage on your refrigerator is clutter in the eyes of a buyer. A Colorado real estate professional is in and out of the best and worst homes on the market day after day and they can give you the benefit of their expertise.

What about when you get that offer? Do you know how to handle it? What if it’s too low? Do you dismiss it out of hand? A realtor is a trained negotiator who is in your corner to answer those questions. They will know if the offer should be seriously considered, dismissed, or countered. They are there to get the contract and then keep the deal in place. A home isn’t sold until you sign the papers at the settlement table. That realtor is trained to handle all the steps and keep any missteps from derailing the deal even at the settlement table.

Give me a call today to find out how to get your home SOLD! Tena D 303-489-9737