5 Ways to Start Buying Investment Properties with Help From a Colorado Loan Officer

1. Start Small with a Primary Residence

A popular approach to ease into residential real estate lending is to buy a primary residence you can eventually rent out. For instance, purchasing a duplex and living in one unit while renting out the other is a great way to get rental income to help offset your mortgage. And the best part? Owner-occupied properties typically qualify for better financing terms, especially through programs like residential lending solutions that a Colorado loan officer can guide you through.

2. Explore FHA or Conventional Loans

Don’t have the cash to buy a property outright? No problem! Many first-time investors use FHA or conventional loans to finance their investment properties. FHA loans, in particular, can help you buy multi-unit properties with as little as 3.5% down as long as you live in one of the units. On the other hand, conventional loans might need a bigger down payment but offer more flexibility in property types and loan sizes. The best mortgage lenders in Denver will help you find the right loan for your situation.

3. Consider a Partner or Investor

Not ready to go it alone? Consider teaming up with a partner. Whether it’s a friend or family member, pooling your resources allows you to reduce financial strain and share the risk. Plus, it might open doors to larger investment opportunities you couldn’t access alone.

4. Build Your Knowledge

Before jumping in, it’s important to educate yourself. Take time to learn about the local market, rental trends, and the ins and outs of managing a property. Working with a Colorado loan officer can also provide valuable insights into financing options. There are so many great resources, from workshops to books, and even professionals like real estate agents or mortgage advisors who specialize in investment properties.

5. Start with Low-Cost Markets

If you live in a high-cost area, consider looking for investment properties in more affordable markets. Smaller towns or up-and-coming neighborhoods can offer lower property values but still have strong rental demand. This is a great way to start small, gain experience, and grow your real estate portfolio.

If you want a clearer picture of what this might look like financially, use a mortgage calculator in Colorado with taxes included. This tool will help you see how different loan amounts and rates affect your monthly payment, helping you make informed decisions.

By taking these small steps and working with a Colorado loan officer, you’ll be well on your way to building your real estate investment portfolio. Keep learning, stay patient, and before long, you’ll be a confident real estate investor!