With the value of homes rising in neighborhoods such as Centennial, Aurora, Parker, Littleton, Highlands Ranch, Cherry Creek and Lakewood, you may wonder whether you should sell your investment property. While the values of homes are rising, so too, is the market rent rising. Many Denver homeowners became reluctant landlords during the housing decline because they wanted to move but didn’t want to do a short sale or go into foreclosure. According to an article by Wall Street Cheat Sheet, the national negative home equity statistics show fewer and fewer people owe more money on their mortgages than the homes are worth. Even if you have positive equity in your home, you should keep your rental property in order to boost your net worth and have passive income. In the Denver area, vacancy rates are particularly low as young people flock to the city for jobs and recreational opportunities.
Renting your Colorado home as an alternative way to save for retirement
In addition to providing you with extra income now, owning a rental property can boost your income stream in retirement. Instead of selling your rental home, a better option is to look into buying a second or third rental property in Denver. Although you may feel intimidated by the prospect, you don’t need to serve as the landlord. Hiring a professional property management company will give you the peace of mind you need to move forward as a more ambitious investor.
Refinancing your Denver home mortgage
If you want to increase your monthly “profit,” or income stream, consider refinancing the mortgage you have on your Denver rental property. Interest rates are extremely low. When you refinance, you will likely end up saving several hundred dollars on your monthly payment. Choosing a shorter loan term will help you if you are nearing retirement, but some people choose a longer loan term in order to leverage their money.
By relying on an experienced Denver property manager, you will feel better because your investment property is in good hands. A property manager not only screens prospective tenants, but enforces the lease and helps protect your asset. At Legacy Properties-PM, we can take care of the daily maintenance and tenant problems so you don’t have to. We are a member of NARPM, the National Association of Residential Property Managers. For more information on protecting your investment property in Denver, please call 720.989.1996 or contact us.