Let’s face it, there aren’t many places you can invest your money these days with confidence. And residential real estate has got to be one of the worst investment choices, right? Well, that depends. It depends on…yup…location, location, location and strategy, strategy, strategy.
Ft. Collins is one of those locations that has weathered the residential real estate storm quite well. And it’s future appears bright enough to warrant wearing shades. Read why U.S. News picked Ft. Collins, and neighboring city Loveland, last week as one of The Top 10 Housing Markets for the Next 10 Years. Also, check out the many other lists that put Ft. Collins at or near the top, all of which point to a strong future for home value appreciation in the area.
In 2003, Dave and I purchased three residential investment properties in Ft. Collins. With vacancy rates in the 4% range, we have been able to keep these rental properties occupied with excellent tenants, while earning strong positive cash flow. Comparables and ZestimatesTM would indicate that these properties have gained about 10% in value since we purchased them. Ten percent over 6 years is nothing to write home about, until you consider that home prices at the national level are down 32 percent since 2006!
The Green Exit strategy that we wrote about a couple of months ago in our post on Greenlording leaves us confident that we will beat market comparables when we go to sell these properties down the road. To summarize that strategy, we re-invest our positive cash flow into eco friendly improvements to our rental properties, which will ultimately allow us to deliver sustainably updated homes for sale to an increasingly green-minded market of home buyers. Oh, and we get more conscientious tenants and higher rents along the way too.
We feel very fortunate that we’ve found a way to invest that is built on our hobby of renovating mid-century homes, our passion for the environment and the mission behind Destination Green. Interest rates and vacancy rates in Ft. Collins are relatively low, creating a great opportunity to purchase rental properties that offer positive cash flow and are poised to appreciate nicely over the next decade. We hope you’ll join the journey, and would be honored to be your guide.