Investment guide
Investing in Denver real estate
The reasons to invest in Denver are plain: the city keeps growing, more than one industry pays the bills, and the core neighborhoods have little land left to build on.
March 2026
Why Denver
The reasons are not complicated.
Denver keeps showing up on lists of the best places in the country to buy investment property.
The population keeps growing, the economy is anchored by tech, aerospace, healthcare, and energy rather than any single industry, and the core neighborhoods have limited land left to develop. Those conditions support long-term appreciation and steady rental demand.
The practice
What Derrick works with
Derrick works with buyers and sellers of single-family homes, townhomes, and small residential buildings: duplexes, triplexes, and quadplexes.
He does not work in commercial apartment complexes or large multi-family buildings, and when a property falls outside that range, he says so.
Returns
What returns look like here
Returns vary widely by neighborhood and by property type.
Single-family homes in Montbello, Green Valley Ranch, and Thornton tend to earn more rent for what the house costs. Highlands and Cherry Creek earn less, and trade that income for a stronger record of gaining value. The small residential buildings, the duplexes, triplexes, and quadplexes, often combine the two.
Whatever the strategy, the neighborhoods that hold value over the long term look the same: not many homes come up for sale, the shops and restaurants are a walk away, and buyers keep showing up.
Underwriting
The numbers to run before an offer
Before any offer, run the cap rate, the cash-on-cash return, the debt service coverage ratio, and a realistic appreciation projection.
Budget for property management, and set aside an allowance for the stretches when a unit sits empty, the way any underwriter would. Hold a reserve for the roof, the furnace, and the water heater.
Property taxes in Colorado are calculated on assessed value, which is not the same number as the market price. The county assessor's office and a local CPA have the accurate figures for any specific property.
The bottom line
The best investment property is not always the cheapest one on the list.
It is the one that fits the goal, the plan for getting there, and a realistic timeline.
None of this is financial advice: the numbers on a specific building are a conversation for a lender, an accountant, and an agent who knows the block.
FAQ
Questions people ask.
Is Denver real estate worth considering?
Denver's long-term market fundamentals have historically been strong. Whether purchasing a home here aligns with your goals is a personal decision best made with your financial advisor and a trusted real estate professional.
What is the average appreciation potential in Denver?
Home value appreciation vary by property type, neighborhood, financing, and management costs. A financial advisor and your lender can help you model realistic returns for a specific property.
Which Denver neighborhoods are best for real estate investment?
Neighborhoods with limited inventory, walkable amenities, and consistent buyer demand have historically supported strong long-term value. Derrick can walk you through current inventory and market conditions in specific areas.
What types of residential properties does Derrick work with?
Derrick works with buyers and sellers of single-family homes, townhomes, and small residential properties including duplexes, triplexes, and quadplexes. He does not specialize in commercial apartment complexes or large multi-family buildings. If you have questions about whether a specific property type fits your goals, reach out and he will be straightforward with you.
What are the property tax rates in Denver?
Property taxes in Colorado are based on assessed value determined by your county assessor. For accurate figures on a specific property, consult your county assessor's office or a local CPA.
