BRRRR in Denver, Colorado

Local Snapshot — Denver, Colorado

Denver leads Colorado BRRRR opportunities with tech sector expansion, corporate headquarters, and outdoor lifestyle attracting high-income residents. The metro benefits from diverse employment, population growth, and rental premiums. Higher entry costs require careful analysis but offer significant appreciation potential and strong rental demand.

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.