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Top 5 Up-and-Coming Trendy Neighborhoods in Colorado

In recent years, Colorado’s real estate market has been attracting more and more investors, so if you’re looking to be one of them, you’re in for a treat. The action isn’t in the cities as a whole; it’s in the details, the neighborhoods that are slowly growing into tomorrow’s hot spots. These areas have excellent prices, they’re in high demand, and they have a lot of potential.

Investing isn’t about instant gratification, so you shouldn’t waste your time on neighborhoods that are already established because you’ll get a far better ROI with something that just keeps going up in price as time goes on. And to do that, you have to be able to recognize what has potential and what will leave your bank account empty.

Lucky for you, we have a cheat sheet, so let’s see where to invest.

Where to Invest

Colorado is a mix of vibrant urban areas and charming suburban communities that look like something out of a movie. So, you’d think that’s where you should invest. However, places that are really worth it are the ones on the cusp of transformation.

Here are five of them.

1. RiNo (River North Art District), Denver

RiNo is a creative hub and it’s a magnet for young professionals and artists, and is known for the murals, hip breweries, and galleries. As it’d be best described, RiNo is an area with both industrial past and present-day creativity.

Lately, old factories have been remodeled into stylish ‘hipster’ work and living spaces and as a result, the property prices have skyrocketed. And this seems less of a fad, but more of a long-term change.

Moreover, RiNo high-rises are in close proximity to downtown Denver, which makes the area perfect for residential and commercial real estate development.

2. Sunnyside, Denver

Positioned a wee bit northwest of the downtown Denver region, Sunnyside presents urban ease yet a pleasant atmosphere. Its transportation links are of good quality, making it suitable for rush-hour travelers.

It used to be overlooked, but now, many properties in Sunnyside are being renovated and there are a bunch of new developments. Trendy cafes, boutiques, and parks are all over the place and they attract families, as well as professionals.

3. Old Colorado City, Colorado Springs

This neighborhood is steeped in history and it has both that small-town charm and a modern feel. It was once the territorial capital of Colorado, and now it’s very popular with tourists because of its quaint streets lined with shops, galleries, and eateries.

As far as infrastructure, investments are focused on preserving the area’s historic character, and this has transformed the real estate market here. Rental properties are absolutely thriving and Old Colorado City is definitely a standout for investors.

4. Midtown, Fort Collins

Midtown is close to Colorado State University, so there’s a constant influx of students, faculty, and young families. The city has a lot of pedestrian-friendly spaces and public amenities, which has led to an increased demand for properties in Midtown. What makes Midtown so attractive for investors are the many affordable starter homes and student housing.

Fort Collins is expanding, and as far as real estate opportunities here go, Midtown is your best bet.

5. The Gardens, Boulder

The Gardens is an area focused on sustainable development, so it’s not hard to see why it’s becoming so popular. There’s no better place for a professional who wants a quiet, green lifestyle.

Properties are developing left and right thanks to local incentives for eco-friendly construction and more interest in green living. Plus, you can’t beat its scenic surroundings. Boulder’s real estate market is competitive, and The Gardens is a unique opportunity for investors.

Top 5 Up-and-Coming Trendy Neighborhoods in Colorado - AboutBoulder.com

How to Finance Your Real Estate Investment

Once you decide on Colorado property investments, the next step is to finance your investment. One of the most popular financing options for investors is the Debt Service Coverage Ratio (DSCR) loan.

Traditional loans focus on your income, but DSCR loans are based on the income the property can generate. This is why it’s an ideal way to finance your new property, especially in up-and-coming neighborhoods where you can expect to earn quite a bit of money from renting. A DSCR loan will allow you to put your attention on cash flow and you’ll have a much easier time qualifying for it if the property is expected to do well.

But these aren’t your only options. If you’re just starting out, FHA loans can be excellent. The down payments are lower and they have more flexible credit requirements. An FHA loan is backed by the federal government.

HELOC can also be a good option if you already own a property. Using the equity accumulated in your existing home or property, you can fund the new investment. HELOCs suit well for investors who are looking to make an addition to their portfolios without having to get a completely new mortgage.

Conclusion

There’s always a spectrum of risk associated with investing and therefore you must apply caution in all your dealings – every experienced investor knows this.

If it’s real estate you’re investing in, always focus on areas that are just getting more popular. It may seem like something more established is a better choice, but with areas that have peaked, there’s only so much money to be made.

It’s a gamble, but with a property in a neighborhood that’s becoming trendier by the day, such as those above-mentioned in Colorado, your investment will (most likely) pay off.

John Mali Director of Media Relations

Director of Media Relations at AboutBoulder.com

[email protected]

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