Between its top-ranked educational institutions and its close proximity to multiple air force bases, it’s no surprise that Colorado Springs is a popular city for renters and rental property investors alike. In fact, Little London recently snagged third place in U.S. News’ “Best Places to Live” list. With a thriving economy, beautiful scenery, and a robust workforce, investors across the country are eager to find their gold rush in the Centennial State. Regardless of where you live, Evernest’s tips for out-of-state investors make it easy to expand your portfolio with Colorado Springs rental properties.
Reasons to Buy Rental Properties in Colorado Springs
Colorado Springs offers a host of benefits for local and out-of-state investors alike. Before we delve into statistics specific to Colorado Springs, let’s discuss why diversifying your rental property portfolio by investing out of state is a winning move.
If you’re new to investing, you may not understand why people tell you to spread your money across several different avenues. When you put all of your eggs in one basket, you increase your risk factor if that basket ever overturns; you may find yourself (and your finances) scrambled. Instead, you should pursue diversity in your investing strategy, which can include expanding into a new state like Colorado. Having multiple kinds of investments and rental property locations decreases the impact that a market downturn could have on your bottom line. With that in mind, it’s time to explore what makes Colorado Springs such a great opportunity for out-of-state rental home investors:
- Higher appreciation rates: There are a few major components to consider when deciding to invest out of state, including your expected return on investment. As rental properties typically appreciate over time, it pays to know what you can expect when investing in a new market - and the data looks great for all those interested in expanding into Colorado Springs. The median Colorado Springs home price is $462K, which is 8% higher than the national average, according to Redfin. That’s a 7% appreciation rate year over year - nearly double the national average appreciation rate of 4.27%.
- Lucrative passive income opportunities: While playing the long game and letting your rental property appreciate, you’ll want to ensure that your passive income flourishes. Investing in Colorado Springs makes that simple. According to Apartments.com, the average rent in Colorado Springs is $1,313 per month.
- A robust economy: Colorado is home to 14 key industries, including aerospace, defense, travel, and more. Notable organizations like Wells Fargo and the Air Force have thrived in the Centennial State. Given the plethora of opportunities, it should be no surprise that Colorado Springs’ workforce is bustling. The average Colorado Springs resident earns $65,775 per capita annually, which is a whopping 51.9% higher than the average American’s per capita at $43,289.
Clearly, there’s much to gain for out-of-state rental property investors interested in Colorado Springs - but there are also potential pitfalls to keep in mind.
Challenges to Consider for Out-of-State Investors
Becoming an out-of-state rental property investor can be challenging if you go it alone. That’s why it’s crucial to hire a trustworthy property management company like Evernest. Evernest handles all your Colorado Springs property inspections, leasing, maintenance requests, and more. Working with an excellent property management company keeps your passive income truly passive, allowing you to expand into new markets with less stress. You don’t have to worry about maintaining physical access to the property or finding local vendor contacts; your team at Evernest will do all the heavy lifting for you.
Additionally, investing in Colorado means learning a brand-new set of local rules and regulations. If you’d rather not crack open a dusty book or go down an online rabbit hole trying to interpret legalese, never fear - Evernest is here for you. Our property management team stays up to date with each market’s specific landlord laws covering everything from Section 8 housing to disability modifications and beyond so that your rental property management portfolio maintains legal compliance without any of the hassle.
Now that you know the benefits and potential drawbacks to investing in Colorado Springs, let’s examine how to decide where to purchase your next rental property as an out-of-state investor.
Choosing the Right Part of Colorado Springs Metro Area
Make no mistake, Colorado Springs is an expansive city. If you’ve only ever visited, you may feel overwhelmed by the wealth of suburbs Little London offers.
That’s why Evernest has created a guide to the best Colorado Springs suburbs for rental property investors, which include:
- Black Forest
- Fountain
- Manitou Springs
- Monument
- Security-Widefield
Check out the full article for more details, including what to expect from each suburb. If you’re ready to take the plunge and invest in Colorado Springs rental property, there’s just one more step for you to consider.
Choose a Colorado Springs Realtor and Property Management Company
We’ve discussed the importance of having a local property management team when trying to keep your passive income passive - but did you know that Evernest also has investor-friendly real estate agents on staff who can help you pick the right Colorado Springs area rental property to meet your unique goals?
Don’t settle for real estate agents who lack an investor mindset; Evernest offers everything you need to find and manage your next rental property in Colorado Springs. With over 18,000 reviews and an average 4.4 star rating, it’s clear that Evernest is the best choice to source and manage your rental property portfolio - especially for out-of-state investors.
