Basics of Real Estate Investing
If you have been thinking about investing in real estate, now is a great time to look into it! Let our founder, Lon Welsh, walk you through the basics of real estate investing in this video.
Picture this. You buy a $200,000 townhome or condo. It has two or three bedrooms, allowing you to rent it out. When purchasing the property, you are able to put down payment of 25%. If it is more convenient for you, you could put down as little as 15%. Over the next 10 years, this asset will increase greatly in value. The little two bedroom will grow from $200K to just about $325K in value. You can see this in the top line of the chart. The purple line is your mortgage. This gets paid down by your tenant every single month. The grey line is your equity in the project. As you can see, it grows from $50K to almost $200K in just over 10 years. This appreciation doesn’t even include the tax benefits. Additionally, it doesn’t account for the fact that someone is paying off your mortgage through rent.
Is now a good time to invest?
Now that you are ready to invest, your next step is to figure out when. The answer is NOW. Even though the prices in Denver have gone up recently, it is still a great time to buy. This is because the rates are very low and there’s still quite a lot of demand on the rental side.
If you are interested in learning more about investing in Colorado real estate, join one of our webinars.