There are a lot of ways to diversify your real estate portfolio. We’re going to talk about some of the easiest and most common things you can do, and we also want to remind you that changing markets can give a lot of extra energy and income to a portfolio. If you’re looking for a brand new market, consider ours in Golden, Colorado. We have a growing economy, a high quality of life, and a lot of opportunity for new and experienced investors.
We work with multiple types of properties and different levels of risk, and we’ve found that a diverse portfolio will allow our investor clients scale their growth and build their ROI.
Diversify with both Single-Family and Multi-Family Properties
Single-family homes are usually fantastic investment opportunities, especially in the Golden, Colorado rental market, where there are some great neighborhoods and growing suburban areas. Single-family homes are always in high demand with well-qualified tenants. You can also charge top rental prices, especially if the home is well-maintained and offers plenty of space, a yard, and a garage. This type of investment will grow in value, providing you with a lot of future financial security.
If you usually invest only in single-family homes, consider diversifying with multi-family properties and apartments. This can help you earn more on your rental portfolio. These Golden Colorado properties will provide more income and less risk. How? Because instead of collecting one rental payment every month, you’ll collect two or three or four. This protects you against vacancy risks. If one unit is vacant, you still have income from the other units.
Lower risk and higher cash flow are excellent reasons to invest in multi-family homes as well as multiple single-family homes.
Diversify and Leverage Golden Real Estate Investments
Another great way to diversify your real estate portfolio is by experimenting with your financing options. A 1031 Exchange, for example, can help you get more with less when you’re looking for a way to add new investment properties to your portfolio.
Some investors pay in cash and others take a traditional mortgage. You might be able to get a better deal if you try owner financing. You usually won’t need a large down payment, and if you structure the deal so that you’re primarily or completely paying the principal, you’ll find your cash flow and your ROI can improve quickly.
These are just a few ways to think about diversifying your portfolio, and remember that a good property management company can help you strategize your investment goals. Contact us at Laurel Property Services, Inc. if you have any questions. We’d be happy to serve as your Golden, Colorado property management resource.
