BRRRR in Colorado Springs, Colorado
Local considerations for Colorado Springs BRRRR projects, plus financing guidance tailored to investors.
Local Snapshot — Colorado Springs, Colorado
Colorado Springs provides more accessible BRRRR opportunities with military presence, tech industry, and outdoor recreation supporting stable rental demand. Lower acquisition costs compared to Denver with competitive rental yields. Military housing allowances create reliable rental floor while growing economy supports appreciation.
Median 3BR Rent$2,400
Median Home Price$558,409
Rent-to-Price Ratio0.52%
Est. Property Tax Rate0.5%
Vacancy Rate3.1%
5y Population Growth8.2%
Avg Days on Market48 days
Last updated: 2024-09-24
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.