Episode Overview

What if Colorado’s market stagnation is actually creating the best investor opportunities in over a decade? While most buyers sit on the sidelines waiting for lower rates, meanwhile savvy investors are capitalizing on August’s unprecented real estate trends. Furthermore, Colorado Springs just hit 4 months supply of inventory. Denver’s active listings dropped 7% in a single month. Consequently, this creates distinct opportunities across the Front Range.

Host Chris Lopez, Co-Founder of Property Llama and host of the Denver Real Estate Investing Podcast, brings together Colorado’s top real estate professionals. Additionally, Troy Howell from Nova Home Loans reveals 10-year treasury rates hitting 4.03%. Jeff White, Denver’s go-to investment broker, simultaneously shares why 70% of appraisals are coming in at or above contract price. Moreover, Jenny Bayless breaks down Colorado Springs market dynamics. Median prices dropped from $497K to $480K year over year.

The team conducts an in-depth analysis of pad split conversions. They walked properties with investors transitioning from short-term rentals. Specifically, room-by-room strategies generating $264 per week require $30-40K upfront investments. However, they eliminate seasonality risks. In addition, they reveal why builders are offering 20-25% discounts to investors. DSCR loans provide financing flexibility for non-traditional rental strategies.

Beyond market data, the discussion explores real-world scenarios. These include Aurora’s notorious complex foreclosure where only one unit paid rent. Additionally, they examine downtown Colorado Springs’ 3,000 new apartment units. These units are pricing out local residents. Furthermore, showing trends suggest these buyer-favorable conditions will persist. The panel also examines HOA financial crises affecting small complexes. They discuss lending differences between condos and townhomes. Moreover, appraisal performance consistently exceeds expectations despite market uncertainty.

In This Episode We Cover:

• Builder concession strategies delivering 20-25% effective discounts
• Why 4 months inventory supply signals buyer’s market opportunity in Colorado Springs
• How Denver’s 7% inventory drop creates false scarcity for unprepared investors
• Pad split conversion analysis – $264 weekly rates with $30K investment requirements
• Fed rate cut expectations and mortgage rates trending toward 6%
• Why 70% of appraisals exceed contract prices despite buyer market conditions

https://youtu.be/rwQN33imows?si=y1l4oyV46xKr9aSV Timestamps

00:00 – Welcome & Guest Introductions
01:18 – Colorado Springs Market Update – 4 Months Supply of Inventory
4:07– Condo vs Townhome Lending Rules – Critical Differences
14:04 – Denver Market Trends- Balanced Market Indicators
17:31 – Pad Split Property Walk Analysis – 7 Bed Conversion Strategy
35:24– Interest Rate Update –Fed Rate Cut Expectations
41:25 – Colorado Springs Apartment Boom – 3,000 Units Downtown
46:44– Aurora Complex Foreclosure Update – Only 1 Unit Paid Rent
48:51– Showing Trends Analysis – 5.5 Showings per Month Average
52:18 – Appraisal Performance Report – 70% Coming in at Contract Price

Links in Podcast

Apartment boom? Downtown Colorado Springs triples numbers of apartments since 2021
New developments expected to add nearly 500 middle-class and affordable housing units in downtown Colorado Springs
Lender forecloses on Aurora apartment complex owned by notorious landlord
Here’s Why Old Homes Suddenly Cost More Than New Ones

Connect with our Guests:

Jeff White: jeff@envisionrea.com

Jenny Bayless: jenny@envisionrea.com

Troy Howell: troy.howell@novahomeloans.com

• LinkedIn: Troy Howell
• Website: https://www.novahomeloans.com/loan-officer/troy-howell/

Who is Keyrenter?

Keyrenter Property Management Denver provides rental solutions for homeowners and real estate investors in the metro area who are interested in transforming their properties into passive income. It offers various services, from property marketing and thorough applicant screening to tenant placement and 24/7 maintenance services. Keyrenter Denver’s team of experts can take the clients’ burden of managing their rental off their hands so they can get back to what matters to them.

Who is Nova Home Loans?

For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today!

NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO