Buying an Investment Property in Denver

Buying an investment property in Denver can be a powerful way to build long-term wealth, generate monthly income, and diversify your financial portfolio. With strong population growth, a diverse economy, and steady housing demand, Denver continues to attract investors ranging from first-time buyers to seasoned portfolio builders. The key is understanding how to approach the market strategically and with local insight.

This guide breaks down what to know before buying an investment property in Denver, with a particular focus on neighborhoods like Applewood and Wheat Ridge, where hyperlocal data and boots-on-the-ground expertise can make a meaningful difference.

Why Denver Remains a Strong Market for Real Estate Investors

Denver’s appeal as an investment market starts with fundamentals. The metro area benefits from a broad employment base across healthcare, technology, aerospace, energy, and education. Job growth and lifestyle-driven migration continue to support rental demand and long-term appreciation.

Limited housing inventory has also played a role. While price growth has moderated from peak years, Denver has not seen the type of oversupply that tends to pressure rents or values. This dynamic favors investors who focus on stable cash flow, appreciation, or both.

Neighborhoods just outside the city core, including Applewood and Wheat Ridge, often present compelling opportunities. These areas offer larger lot sizes, strong owner occupancy, and access to downtown Denver, Golden, and major highways.

Choosing the Right Investment Strategy

Before purchasing an investment property, it is essential to define your goals. Denver supports multiple investment strategies, but each requires a different approach.

Long-Term Rental Properties

Traditional long-term rentals remain popular across Denver. Single-family homes, duplexes, and small multifamily properties often attract stable tenants, particularly in neighborhoods with good schools, parks, and commute access.

In areas like Applewood, long-term rentals can appeal to tenants seeking more space and a neighborhood feel while remaining close to downtown Denver and the foothills.

House Hacking

House hacking involves living in one unit of a property while renting out the others. This strategy is common with duplexes or homes that have accessory dwelling units or finished basements. Many buyers use this approach to offset or significantly reduce their monthly housing costs.

Denver zoning and neighborhood guidelines vary, so understanding what is allowed is critical before moving forward.

Short-Term and Mid-Term Rentals

Short-term rentals are subject to strict regulations in Denver, including primary residence requirements in many cases. However, mid-term rentals, typically 30 days or longer, have become increasingly popular. These rentals often cater to traveling professionals, relocation clients, or people between homes.

A knowledgeable local realtor can help evaluate whether a property realistically supports this strategy.

Understanding Neighborhood-Level Data Matters

Denver is not a one-size-fits-all market. Performance can vary significantly by neighborhood, property type, and even street.

Applewood, for example, is known for larger lots, mature landscaping, and strong buyer demand. Wheat Ridge offers a mix of older housing stock, redevelopment opportunities, and proximity to downtown Denver and Golden. These characteristics influence rent potential, tenant profiles, and long-term appreciation.

Working with a realtor who is dialed into neighborhood-level data helps investors avoid relying on broad metro averages that may not reflect the true performance of a specific area.

Financing an Investment Property in Denver

Financing is often one of the biggest differentiators between a good investment and a great one.

Investment property loans typically require higher down payments and carry slightly higher interest rates than primary residence loans. However, there are creative options available depending on your situation.

Some investors begin by purchasing a property as a primary residence, living in it for a period of time, and later converting it to a rental. Others leverage equity from existing properties to fund new purchases.

Understanding how financing options align with your goals is essential, and it is an area where experienced guidance can save significant money over time.

Cash Flow vs Appreciation in Denver

Many Denver investors ask whether the market is better suited for cash flow or appreciation. The honest answer is that it depends on the neighborhood and the deal structure.

Some areas may offer modest monthly cash flow but strong appreciation potential. Others may generate more consistent income but see slower value growth. In Applewood and Wheat Ridge, many investors prioritize long-term appreciation paired with stable rents and lower tenant turnover.

A smart strategy often balances both, focusing on properties that make sense today while positioning you well for the future.

Due Diligence and Local Regulations

Due diligence is especially important when buying an investment property in Denver.

This includes reviewing zoning, rental regulations, licensing requirements, and any neighborhood-specific rules. Property condition, maintenance history, and potential capital expenditures should also be carefully evaluated.

Having a local expert review these details can help avoid costly surprises and ensure the investment aligns with your expectations.

Why Working With a Local Denver Investment Realtor Matters

Buying an investment property is not just about running numbers. It is about understanding how those numbers interact with real-world conditions.

Jason Sirois is an Applewood resident and a trusted resource for buyers and sellers throughout Denver, Wheat Ridge, and Applewood. As the leader of the FORM Team at Compass Denver, Jason brings a data-driven approach paired with firsthand neighborhood knowledge.

Jason actively tracks Applewood and Wheat Ridge real estate data, understands tenant demand at a micro level, and helps investors evaluate properties through both a financial and lifestyle lens. Whether you are purchasing your first rental or expanding an existing portfolio, that local insight can make all the difference.

If you are considering buying an investment property in Denver, Applewood, or Wheat Ridge, the FORM Team can help you evaluate opportunities, model realistic returns, and connect you with vetted lenders, contractors, and property management resources.

Frequently Asked Questions About Buying Investment Property in Denver

Is Denver still a good place to buy an investment property?
Yes. Denver continues to benefit from strong rental demand, a diverse economy, and long-term population growth. Success depends on buying the right property in the right neighborhood.

What types of properties work best for investors in Denver?
Single-family homes, duplexes, and properties with flexible layouts tend to perform well. The best option depends on your goals, budget, and tolerance for management.

Can I buy a short-term rental in Denver?
Short-term rentals are regulated and often limited to primary residences. Mid-term and long-term rentals are more common and easier to execute.

How much do I need for a down payment on an investment property?
Most investment loans require 15 to 25 percent down, though this can vary by lender and strategy.

Why focus on neighborhoods like Applewood and Wheat Ridge?
These areas offer strong demand, proximity to downtown Denver and the foothills, and long-term desirability that supports appreciation and rental stability.