Buying an investment property can be one of the most transformative financial decisions you’ll ever make—but knowing when to buy and how to prepare can feel overwhelming. Denver’s real estate market continues to attract investors because of its strong rental demand, growing population, and diverse investment strategies ranging from traditional rentals to house hacks to co-living models.

If you’re considering stepping into the world of real estate investing, here’s how to determine the right timing, what steps to take to get prepared, and why working with an experienced, investor-friendly agent makes all the difference.

1. The Right Time to Buy Isn’t Just About the Market—It’s About You

Many buyers try to “time the market,” but seasoned investors know the truth:

The best time to buy is when you are financially and mentally ready.

Here’s what that typically looks like:

✔ You’ve built a financial cushion

Lenders want to see consistent income, manageable debt levels, and cash reserves. You don’t need to be wealthy—but you should have:

• Stable monthly income
  
  
• A modest emergency fund
  
  
• Capital set aside for a down payment and closing costs
  
  
• Margin for unexpected repairs or vacancies
  
  

✔ You have a long-term mindset

Real estate wealth builds slowly. If you can commit to holding the property for 5–10+ years, you’re in the right phase of life to benefit from appreciation, rent growth, and tax advantages.

✔ You’re prepared to be a landlord—or partner with the right support

Even if you’re not ready to manage tenants yourself, being ready to hire property management or outsource operations shows you’re ready to take the next step.

2. Steps to Prepare Before You Buy an Investment Property

Denver investors who prepare strategically will always outperform those who jump in blindly. Here’s what to focus on:

Step 1: Understand Your Investing Strategy

There is no “one right way” to invest. Start by learning the most common Denver strategies:

• House hacking (live-in investment for lower down payment)
  
  
• Co-living rentals (high cash flow in high-demand areas)
  
  
• Traditional long-term rentals
  
  
• Short-term or mid-term rentals (with local regulations in mind)
  
  

Your strategy influences your budget, location, property type, and financing.

Step 2: Review Your Finances and Get Pre-Approved

Before you start touring properties, talk to an investor-friendly lender. A pre-approval will help you:

• Understand your purchasing power
  
  
• Compare loan programs (DSCR, FHA, conventional, 5% down house hack options, etc.)
  
  
• Get clarity on required reserves
  
  
• Learn how rental income affects your loan
  
  

In competitive markets like Denver, being financially ready is essential—you’ll move faster and make stronger offers.

Step 3: Narrow Down Markets Within Denver

Denver isn’t one market—it’s dozens of micro-markets. Each neighborhood performs differently depending on:

• Rent demand
  
  
• Price-to-rent ratios
  
  
• Walkability
  
  
• Accessibility to jobs or universities
  
  
• Co-living or house-hacking potential
  
  
• Future development activity
  
  

An agent who specializes in investments can help you eliminate areas that look good on paper but don’t perform in reality.

Step 4: Analyze Deals Before Stepping Into a Showing

Investing isn’t emotional—it’s numbers-driven.
Before you buy, you should know how to evaluate:

• Cash flow
  
  
• Cap rate
  
  
• Appreciation potential
  
  
• Co-living rent projections
  
  
• Vacancy and maintenance assumptions
  
  
• Break-even thresholds
  
  

The FI Team equips clients with calculators, underwriting tools, comps, and rent-by-the-room expertise so you can analyze deals like a pro.

Step 5: Build Your Dream Team Early

A successful investor doesn’t operate alone. Before buying, line up:

• Investor-friendly real estate agent
  
  
• Lender who understands Denver investments
  
  
• Insurance provider familiar with rental policies
  
  
• Property manager (if not self-managing)
  
  
• Contractors or handymen
  
  

Having these relationships in place eliminates stress once you go under contract.

3. When Should You Connect With a Realtor? Much Earlier Than You Think.

Many new investors wait until they’re “ready to buy” to reach out to an agent—but the best time to start is months before you plan to make an offer.

Here’s why:

Investor-friendly realtors help you clarify your strategy

They can walk you through different models—co-living, house hacking, duplexes, ADUs—and help you figure out what fits your goals.

They show you neighborhoods you may not even know to consider

Denver investors often overlook high-performing pockets simply because they aren’t familiar with the area.

They help you understand what a good deal really looks like

Most first-time investors don’t know what a strong cash-flowing property should achieve.
The FI Team gives clients deal examples, rent comps, underwriting templates, and guidance you won’t find with a traditional agent.

They help you avoid costly mistakes

A general agent might be great for primary homes but may not understand:

• Rent-by-the-room strategies
  
  
• Duplex and triplex underwriting
  
  
• Local landlord laws
  
  
• Cash-on-cash targets
  
  
• DSCR and investor-specific loan products
  
  
• Co-living layouts and bedroom count optimization
  
  

Working with the wrong agent can cost you tens of thousands in missed rent and poorly analyzed deals.

4. Why Denver Investors Should Work With Investor-Friendly Realtors Like The FI Team

Denver’s investment landscape is unique—and rapidly evolving. You need an agent who not only understands real estate but also understands investment returns.

Here’s what sets The FI Team apart:

✔ They are investors themselves

Every agent on the team owns investment property—many are house hackers, co-living owners, or multi-property investors. They walk the talk.

✔ They know Denver rent comps, neighborhood trends, and what actually cash flows

They’re not guessing. They use real data from real clients with real portfolios.

✔ They provide guidance on remodeling for returns

Especially for co-living and multi-bedroom strategies, where layout optimization matters.

✔ They have a full investor network

Lenders, contractors, PMs, insurance experts, and other investors—creating a support system for long-term success.

✔ They focus on building long-term wealth, not just closing one transaction

Your first property is just the start. They help you plan for your second, third, and beyond.

Final Thoughts: The Best Time to Start Preparing Is Now

You don’t have to wait until you feel 100% ready. The investors who grow the fastest are the ones who take small steps early:

• Learning the strategies
  
  
• Understanding the numbers
  
  
• Connecting with the right team
  
  
• Clarifying their financing
  
  
• Touring properties to build confidence
  
  

If you’re thinking about buying an investment property in Denver—whether in 6 months or 2 years—the smartest next step is to talk with an investor-friendly realtor who can guide you.

The FI Team is here to help you identify your strategy, analyze deals, and make the smartest investment decisions for long-term success.