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A Smart Investment: College Towns

Author: Kyle J. Leigh

Many of us are still looking for that next great investment.  The next Apple.  The next Facebook.  As we’ve all come to know, the real estate gains that were made in the past couple of decades will not make a dramatic comeback in the foreseeable future.  Yet, many people still believe that a solid return on investment can be made in residential real estate.  Let me explain:

I’m a two-time University of Denver graduate.  Believe me – I’ve spent immense amounts of time lurking around the DU neighborhood.  From the beginning, I rightly understood how great of an investment a rental home in this neighborhood could potentially be.  Think about it.  You have a consistently replenishing tenant base to fill your four-bedroom house.  Universities like DU don’t tend to disappear.  These students also often sign two-year leases at a time.  Why?  Because the cost of DU’s own housing increases every year, and they don’t want to get stuck without an off-campus residence.  The demand is that great.  Did I mention that the university charges roughly $1,200 per person!  In students’ eyes, renting a house is a steal.

So, what did I do?  Well, I bought at house on Gilpin just two blocks from the university.  It’s a four-bedroom, two-bathroom bungalow right in the middle of the bustling Evanston neighborhood.  You have the original Chipotle just a few houses down, the legendary Kaladi Brothers Coffee shop, and a number of local bar-and-grills.  Within walking distance to Porter Hospital and the historic Old South Pearl Street, it’s the prime locale for both students and young professions.

And what ROI am I experiencing?   If I hold onto the property for ten years, I’ll see a CAP rate of nearly 14%.  Not bad considering it already creates a generous cash flow even with a conventional loan debt service.  I’m not saying that everyone can experience this same return, but there are many roads to the same destination.

As LeVar Burton said, “But don’t take my word for it.”  Have a look at this article in the Wall Street Journal.

“College markets have long been one of the real estate industry best-kept secrets,” says Jim Gillespie, chief executive of Coldwell Banker Real Estate LLC. “Real estate professionals have been investing in college towns for years, often purchasing homes for their children who are attending school.”

Let us know if we can help!

1250 South Garfield Street
Denver, Colorado 80210

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

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Categories: Uncategorized

New Listing: 2320 South University Boulevard

February 21, 2011 Leave a comment

Adjacent to the University of Denver

Few opportunities such as 2320 S. University come along. For the investor, this flat adjacent to the University of Denver campus offers enviable amenities including location, low HOA, deeded parking and potential 7.5% cash-on-cash return while building equity. May I suggest for rental management, Concierge Student Services. For additional information concerning investing in college/university oriented real estate check out:

http://blogs.wsj.com/developments/2009/11/05/looking-for-a-real-estate-investment-try-an-animal-house/

BTW: We do not condone an “Animal House”, just the principals, income and upside potential.

For the owner/occupant, finally a great opportunity to purchase cheaper than rent. With an asking price of $112,900 you will be amazed at what a value this is. The location is prime with easy access to downtown and the DTC as you are just blocks from I-25. In addition to the vibrant DU neighborhood, Cherry Creek is less than 10 minutes north. The expansive top-floor flat has been updated and is most welcoming. Buy now to live and retain as a rental later on; such an opportunity only comes about once every decade. Do not miss out. Owner will carry.

 

Categories: Uncategorized

Creative Tips: Showing Your Home in Colorado’s Winter

February 12, 2011 Leave a comment

I have personally loved all of the obscure weather we’ve had in Denver this winter.  Frankly, who couldn’t enjoy 70-degree temperature changes, rain falling onto snow-packed roads, and scores of bursting pipes?  Well, anyone who is trying to sell a house – that’s who.  So if you’re one of these unlucky soles, here are a few creative tips to making your house more attractive:

When life gives you lemons, make lemonade.  Alternatively when life gives you snow, make snowmen.  Snowmen always attract attention from passersby, especially if dressed in alternative attire.  I’m thinking of Frosty the Snowman’s Hawaiian cousin.  So, put Aloha Frosty next to the yard sign.  They will promote each other.  But when the temperatures rise, put him in the freezer.  No one wants to someone melt – unless it’s a wicked witch.

As a wiser man than me once said, “Don’t bunt.  Aim out of the ballpark.  Aim for the company of immortals.”  If you surround yourself with angel investors, you’re set!  If not, get your bases loaded.  During cold days, anyone seeing a house is likely to skip the yard and fly right to your front door as quickly as possible.  So, place most of your effort into staging your home.  People want to see themselves enjoying cold days inside your home.  If the atmosphere around them is cold and uninviting, so will be their hearts.  Warm them up with packets of Swiss Miss, mugs, and a Thermos of hot water next to the entryway.  For an extra touch, prepare a thank-note gratifying your potential buyer for their visit.  These simple touches will leave goodwill in their hearts and minds.  Maybe you’ll get a grand slam!

You can only make one first impression.  If you play your cards right, that’s all you’ll need.  So here is my most creative tip: clear your driveway and sidewalk.  If I wanted to go ice-skating, I would have brought my skates.  I’m getting back into my car if your house looks like the rink at Rockefeller Plaza.

Stay warm (or cool) out there!

2133 Race Street
Denver, Colorado 80205

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Author: Kyle J. Leigh

Categories: Uncategorized

Existing Homes Sales Jump in December

February 3, 2011 Leave a comment

Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.

7320 Woodglen Place
Castle Pines, CO 80108

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

 

 

Categories: Uncategorized

Congrats to Gina Saab!

January 18, 2011 Leave a comment

We would like to congratulate Gina Saab for all of her success enriching so many lives throughout 2010.  Gina was our top agent in the office, and we’ve received nothing but glowing praise from her elated clients.  She truly understands what the genuine foundation of all transactions is – the people involved.  Relationships are the core of how she works with each and every one of her clients.  Madison & Co. Properties truly holds agents like Gina in the highest esteem.  All of us eagerly look forward to carry on these values as we continue through this new year!

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Categories: Uncategorized

A Little-Known Strategy for Cutting Mortgage Payments

January 7, 2011 Leave a comment

“Recasting,” or “re-amortization,” involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate.

Find out more in this great article from the New York Times: http://www.nytimes.com/2011/01/02/realestate/mortgages/02Mort.html

4465 Stuart Street
Denver, Colorado 80212

4465 Stuart Street

Madison & Co. Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Categories: Uncategorized

Colorado Snow

December 20, 2010 Leave a comment

My car read 56 degrees today.  56.  On a late December day.  The day before the official start of winter.  My dog was basking in the heat.  Poor thing.  She must be terribly confused.  Yesterday, we were up near Keystone alpine trekking and backcountry skiing.  It was 18 degrees with nearly two feet of fresh powder.

Let’s think about this quagmire.  70 miles away. 41 inches and and 38 degrees of difference.  Even Mike Nelson is twiddling his thumbs.  Not even his “tornado dance” can explain this one.

Is it “Global Weirding?”  I don’t know.  All I can get out this is the enjoyment of skiing in the morning, and then drinking mojitos outside on my deck while watching Denver’s glorious mountain sunsets.

2200 South University Boulevard, #204
Denver, Colorado 80210

2200 South University Boulevard

Madison & Co. Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Categories: Uncategorized