Real estate market in Colorado where are the best opportunities? (Denver: short sales, apartment)

[travelamerica]

Have been reading the posts on the Colorado economy. Also have looked at the record postings of short/foreclosure sales of houses.
Wife and I have our own online business and have considered moving to Colorado from Texas, or getting a second home there. Looking at houses that have 5 acres or more in the $100k to $200k range. So far we have seen lots of properties that fit that bill. Would be more interested in an area within an hour of Denver. Suggestions?

[jazzlover]

Originally Posted by travelamerica

Have been reading the posts on the Colorado economy. Also have looked at the record postings of short/foreclosure sales of houses.
Wife and I have our own online business and have considered moving to Colorado from Texas, or getting a second home there. Looking at houses that have 5 acres or more in the $100k to $200k range. So far we have seen lots of properties that fit that bill. Would be more interested in an area within an hour of Denver. Suggestions?

Despite the bursting of the real estate bubble in Colorado, $100K will barely buy you 5 acres in most areas of Colorado except on the Eastern Plains--unless the property has severe problems, like lack of domestic water availability. If a property is $100K-$200K with 5 acres and a house, chances are the house is in such poor condition that it is barely adding any value to the property or there is some other major defect in the property. The foreclosure market is absolutely NOT for out-of-state amateurs in Colorado. It's easy enough for long-time Coloradans with excellent familiarity with the market in Colorado to get burned buying foreclosures or short sales--for people without deep understanding of Colorado real estate and water issues, it's a minefield.

[Arrby]

Your requirements are going to be tough to meet in the one-hour-to-Denver area. It might be possible, but not easy, to get what you want within an hour of Colorado Springs or Pueblo, and even there you are going to push the $200,000 limit really hard unless a modular is ok.

The absolute first thing you need to know about real estate in Colorado is water rights. Water rights are worth as much, or sometimes more than the land itself. You need to know the difference between household and domestic rights, at a minimum. Then you would be well advised to find an agent who really knows the ins and outs of short sales and foreclosures. These people do exist, but like any profession the good ones are hard to find.

Many local banks have file folders full of foreclosures or near foreclosures. Some have on line listings, but for many you just have to go in person and inquire.

Finally, it would help to know more about your objectives. Do you want established neighborhoods and services? Do you want views? Seclusion? Land for stock? Mountains? Plains? Schools?

[wanneroo]

I think Arrby laid it out pretty well. There are a lot of questions to ask and things to consider. There are still suburbs of Denver like Highlands Ranch where people have had water problems for decades or foundation problems due to the soils.

There is a lot of crappy land and real estate scenarios that suck in tons of dreamy outsiders. Good real estate with nice views, near some sort of civilization, has trees and especially water is at a premium in Colorado and commands a premium price.

[2bindenver]

Highlands Ranch does not have water problems for years. Highlands Ranch has a better water supply then other areas.

There is this thing called the "red zone" where soils tend to be expansive, but the houses that did not have engineered foundations have moved already.

[StealthRabbit]

Originally Posted by travelamerica

... Looking at houses that have 5 acres or more in the $100k to $200k range. ...within an hour of Denver. Suggestions?

Wiggins... "Me an Earl were haulin' Chickens, on a flatbed outta Wiggins..."

Seriously you need to get a solid RE contact in the specific area you want to focus, but you will be buying a junker at that price (Which I prefer to buy, lower taxes...). A bulldozer or excavator can make quick work of your junker, and you can add a nice (cheap looking costing) shop with a beautiful apartment inside. The tax guy doesn't need to know about the beautiful part...

That is what I'm having to do in TX to avoid the tax man.

The great deals are gone BEFORE they hit the market, that is why you need an inside line.

[travelamerica]

"Me an Earl were haulin' Chickens, on a flatbed outta Wiggins..."
LOL
I know what you mean about Texas. Property taxes are astronomical. Makes Colorado look dirt cheap by comparison. Other option would be to buy land and park our RV there once or twice a year as a getaway.
Good information all.

[StealthRabbit]

Originally Posted by travelamerica

... Other option would be to buy land and park our RV there once or twice a year as a getaway.

or, as I am doing...

Buy a small trashed or low tax rural prop with 2 entrances and near an airport.
1) house / main joint stays rented to a 'built-in caretaker' + sustainable annual income flow.
2) shop / barn in rear has a bath for RVs and apartment for me. And a shed for one of my 50 mpg "StealthRabbits"

3) 3-5 RV sites for renting to traveling friends ~$300/month based on zoning (which will often allow prolonged RV 'storage' + 6-8 week stays)

4) Once I'm too old to utilize, I will sell for 30% down and carry the paper for a prolonged income stream. (While I rest in Tahiti)

This way the place is not just sitting there needing maint and vulnerable to theft / squatters. And I can fly around to 3-4 of these places strategically located for weather and enjoyment. I am also looking at 'equity sharing' in foreign countries where I can do similar, with an existing farmer.