Rentals aren’t going out of style anytime soon. As an investor, rental properties are a fantastic way to bring in income. A Colorado rental property loan can make that a reality!
Denver is a hot spot for people who are looking to move to the mountains. Companies are buying up surrounding areas and bringing jobs, as well. All those people need places to live and renting is the way to go for some of them.
If you’re an investor, or want to become an investor, here are some tips for using your Colorado rental property loan to its maximum potential!
Know the Numbers
A rookie mistake that some rental investors make is to overestimate the value of their property. You may think that listing the property for a higher rent value means more monthly income, but that could lead to vacancies and price reductions that could hurt your bottom line. You want to know the area and the rent potential for your property like the back of your hand in order to be successful.
Renters are just as picky about the area they’re living in as buyers. They want to be close to shopping and transportation. For renters with families, they want to be close to good schools. Pick your properties strategically and in desirable neighborhoods to snag top dollar!
Rentals are bound to need repairs and will have turnover so spending money on expensive upgrades isn’t the best use for your money. Instead hold onto that money for a new dishwasher if the old one breaks or to advertise for new tenants if you find yourself with a vacancy. Having a cash reserve is important for a rental investor and you definitely don’t want to put a large chunk of your Colorado rental property loan towards home upgrades.
If you’re choosing your properties strategically based on rental potential and location using your money for necessary upgrades rather than extra improvements, you’re on the right track to have great passive income from a rental property.
If you need a Colorado rental property loan in order to fund your property purchase, Level 4 Funding can do just that. Call us for more information today!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.