Foreclosures lead to cheaper investments
Some Denver investors are buying homes for $100,000 or less on the Front Range, and then renting them for up to $450 more than their mortgage and taxes. Many are located in Aurora, Green Valley Ranch, Montbello, southwest Denver and Commerce City. Homes selling for less than $100,000 on the Front Range have increased substantially since 2005. That year, 355 properties sold for under $100,000, but in the first nine months of 2008, 2,015 homes have sold in that price range — nearly 90% were foreclosures. Foreclosures in 2007 in the Denver metro area jumped 41% since 2006. And so far this year, foreclosures are up 9% over the same time frame last year. However, investors may not be able to find as many good deals in the very near future. Colorado’s Division of Housing is spending about $88 million to purchase foreclosures, which will help about 15% of endangered homeowners.
