BRRRR in Boulder, Colorado

Local Snapshot — Boulder, Colorado

Boulder represents premium BRRRR opportunities with University of Colorado, tech corridor, and highest income demographics in Colorado. Extremely competitive market with high entry costs but exceptional rental premiums and appreciation potential. Limited inventory and strict development controls support value retention.

Last updated: 2024-09-24

Sources: Tax• Vacancy• DOM

Local BRRRR Notes

• Inventory & comps: Verify comparable sales supporting your ARV; track days on market and supply trends.
• Rent checks: Confirm realistic rent using multiple sources; underwrite concessions and lease‑up time.
• Permit timelines: Speak with local building departments for scope‑specific requirements.
• Contractor bench: Line up multiple bids and references; enforce clear milestone payments.
• Exit & DSCR: Size loan proceeds under conservative DSCR and rate scenarios.

Talk to a financing specialist to structure your deal.

Financing Benchmarks

• Target DSCR ≥ 1.35–1.45x given higher acquisition costs and market competitiveness.
• Purchase LTV typically 70–80% due to price volatility and market conditions.
• Refi LTV commonly 65–75% with lenders requiring updated appraisals and market analysis.
• Seasoning requirements 6–12 months; some lenders require longer given market volatility.
• Carry 15–20% rehab contingency due to skilled labor costs and material availability issues.
• Maintain 12–18 months reserves given economic sensitivity and seasonal variations.
• Insurance costs moderate; wildfire coverage considerations in certain areas.