62 S Monroe St Denver CO 80209 | $550,000 | 3,721 Sq. Ft | 3 Bedrooms, 4 Bathrooms
Do you like to entertain? If so, take a look at this temperature controlled wine cellar! Located off the finished basement, this cellar provides easy access when entertaining. The basement features a built-in theater surround sound, bedroom, laundry room and bathroom with steam shower.
Listing courtesy of Howard Ecker & Company.
Liz works full-time as a Real Estate Agent with LUX. Denver.
727 Oneida St Denver CO 80220 | $550,000 | 2,008 Sq. Ft | 4 Bedrooms, 2 Bathrooms
This triple panel skylight keeps this Montclair home light and bright. Plenty of charm in this home with stained glass windows, stone fireplace and mantle and turquoise art niche conceal the built-in bookshelves. Newly opened renovated kitchen is perfect for entertaining with slab granite countertops, granite sink and stainless steel appliances.
Listing courtesy of Re/Max Alliance
Liz works full-time as a Real Estate Agent with LUX. Denver.
1567 Wolff St Denver CO 80204 | $695,000 | 1,474 Sq. Ft | 3 Bedrooms, 4 Bathrooms
Beautiful new construction in Sloan’s Lake. The first level features a gourmet kitchen and living room. There are three levels of living and three bedrooms with their own en suite. Enjoy the city views from the rooftop deck!
Listing courtesy of Burke and Associates.
Liz works full-time as a Real Estate Agent with LUX. Denver.
888 N Logan St #8GH Denver CO 80203 | $695,000 | 2,225 Sq. Ft | 2 Bedrooms, 2 Bathrooms
Marvel in both east and west views in the Cap Hill condo. This condo offers not one but two covered patios and views from just about any spot in the home. Inside, the home has been renovated, offering an open and spacious living area with wide plank solid wood and stone floors. The location is superb – just steps from restaurants, shops and bars!
Listing courtesy of Coldwell Banker.
Liz works full-time as a Real Estate Agent with LUX. Denver.
There are many ways to build wealth and an investment in real estate can certainly be a great option. Financial professionals will speak of a maintaining a diversified portfolios, which often includes a real estate investment. Let’s take a look at some of the advantages of investing in real estate.
Rate of Return – Return is calculated on your investment.
Example: You purchase a home at $100,000 with a $20,000 downpayment and the real estate market appreciates 5%. In this scenario, you are making a cash on cash rate of return of 25% on your initial investment of $20,000. 5% of $100,000 is $5,000. $5,000 of $20,000 is 25%. This is called financial leverage.
Income – Real estate offers the opportunity for rental income (cash flow). This would be the rent that you collect monthly on your investment less any expenses. The income made on a real estate investment is often referred to as the capitalization rate. This is calculated by taking yearly gross income less the yearly expenses to determine net income. Net income is then divided by purchase price to give you the capitalization rate (cap rate). Go here for a definition and example.
Control – If your property is underperforming, you have a lot of control. You can increase cash flow by charging for parking or adding a washing and dryer and charging for laundry. You can also fire or change the property manager to decrease expenses.
Tax consequences – If you plan correctly, when you sell an investment home you can avoid capital gains by turning around and investing in another investment home. This process is called a 1031 exchange and there is no limit on the number of 1031 exchanges you process in a lifetime. In addition, the tax liability on the rental income is often kept light due to the depreciation write offs.
Government Support – Historically, the government will support the real estate market (compared to the stock market). Although, you should never count in this, it is something to note. The most current example of this is what occurred in 2008, when the stock market and real estate market crashed, a lot of aid was given to the housing market. It went even as far as an 8k stimulus to homebuyers who purchased a home in 2010.
Real estate is just one way you can build wealth. Like any investment, there are a number of advantages to this type of investment. If you are giving thought to adding real estate into your portfolio, contact Liz to run the numbers to see if it is a strong investment.
Liz works full-time as a Real Estate Agent with LUX. Denver.
1150 Jackson St Denver CO 80206 | $775,000 | 2,986 Sq. Ft | 4 Bedrooms, 3 Bathrooms
Just in time for summer! Enjoy this spacious backyard in this Congress Park home. Relax in your own hot tub under the Colorado stars. This backyard has been professionally landscaped with perennial and bulb bushes and a fruit-bearing peach tree. Stay out of the hot Colorado sun with the covered patio.
Listing courtesy of Torchlight Real Estate Group.
Liz works full-time as a Real Estate Agent with LUX. Denver.