Denver’s residential investment market is undergoing a significant realignment as rising costs, new regulations, and tighter financing reshape how investors approach property acquisition. Christine Belin, a real estate broker and property management consultant with Evernest who has spent ten years working in Colorado’s investment sector, outlines how both institutional and individual investors are adjusting to these new realities.
A Shift from Customer Service to Investment Strategy
Belin entered real estate over 11 years ago, graduating with a marketing degree into a tough job market after the 2007 economic downturn. After several years in customer service, she decided to pursue a career in real estate. Initially drawn by the promise of sales and helping people, she soon found herself working more with investors than traditional homebuyers, thanks to a side job showing rental properties that snowballed into so much more. When Evernest acquired her brokerage in 2019, she became their main Colorado agent as the company expanded from seven to about 50 markets nationally. Since Evernest launched its brokerage division in 2021, Belin has focused on helping investors maximize returns on rental properties, drawing from personal experience as both a broker and investor.
While her main focus is helping clients buy and sell, her role now spans the whole investment process, from market research to property management. “I keep a finger on the pulse of the rental market, understanding what investors need,” Belin says. “There are different views you need to take on things.”
Traditional Investment Models Lose Ground
A clear shift is underway as Denver investors move away from properties that once defined the easiest path to returns. “Investors are very much moving away from townhomes and condos that used to be an easy button,” Belin says. These properties, once favored for low maintenance and predictable costs, have become less attractive as rising HOA fees erode margins.
The main driver of this change is a spike in HOA costs, driven by higher insurance premiums and increased labor and material costs since the pandemic. Several major insurance companies have exited the Colorado market, leaving HOAs scrambling for new coverage at much higher rates. “Insurance companies have left Colorado. Some left in early 2025. I had several examples of multiple HOAs that had renewed their policies, and at the last minute, the rug was pulled out from under them,” Belin says.
This insurance crisis has forced HOAs to secure coverage at sharply higher rates, raising monthly fees for owners. At the same time, labor and material costs for repairs and maintenance—already up by at least a third since COVID—continue to rise, further squeezing returns.
Market Data Reveals the New Reality
Market data confirms a downturn in condo and townhome prices. “The values of condos and townhomes are down—yes, you can see that in the data. It’s obvious single-family homes aren’t dipping as much as townhomes and condos,” Belin notes.
While lower prices might attract new investors, the ongoing operational headaches deter many. The trend marks a more profound shift in investment strategy, not just a temporary reaction to market noise.
New Regulations Add Pressure
Recent Colorado legislation has introduced new hurdles for small-scale landlords. Laws enacted in 2024 require landlords to give tenants who have lived in a property for at least 12 months a 90-day notice to vacate, and only for specific reasons. “You can only ask them to move out for particular reasons, and you have to do those things within a certain amount of time,” Belin says.
These rules hit smaller investors hardest, as they lack the resources and legal support available to large institutional landlords. Belin points out that the image of landlords as big corporations is often inaccurate: “It tends to be your neighbor—somebody who just has a handful of properties, or maybe they just have two, or maybe they just have one.”
Creative Financing Gains Ground
With higher interest rates making traditional mortgages less appealing, investors are turning to alternative financing. “You’re seeing a lot more creative financing. They are trying to steer clear of traditional funding and hard money lending. The numbers are just too high,” Belin says.
Seller financing and reverse 1031 exchanges are gaining popularity, especially as deals take longer to close. These approaches can help investors complete transactions that would not be feasible with conventional loans, enabling more flexible deal structures in a challenging lending environment.
Divergence Between Institutional and Individual Investors
Institutional and individual investors are responding to market pressures in different ways. Belin sees large institutional buyers holding back, while smaller investors are finding ways to adapt. “Institutional buyers, a lot of them, are holding their purse strings where small mom and pop investors are finding ways to make the deals work,” she explains.
Individual investors are taking advantage of seller financing and strategic 1031 exchanges to optimize their portfolios. Those who have owned properties for five to seven years are often choosing this moment to sell and reposition their capital into better opportunities.
Emerging Opportunities in a Tight Market
Despite the headwinds, Belin sees several underexplored opportunities. Build-to-rent properties, tiny multifamily buildings with 8 to 20 units, offer strong potential for private investors. “I think it would be smart to build some 8, 10, 12-plexes to have for private use of one owner handling a small multifamily. I think that’s a smart way to enter the market if you have the capital,” she says.
The midterm rental segment is another area with unmet demand. “There’s an emerging niche that needs to be addressed for midterm rentals—not Airbnbs, not full-blown rentals, but that midterm rental for executives, contract work, traveling nurses,” Belin notes. These properties can fill a gap for tenants seeking furnished, flexible-term housing beyond short-term vacation stays.
Move-In Ready Properties Are Now Essential
For investors looking to sell rental properties, making homes move-in ready is now a necessity. “The biggest thing I can tell my clients who are taking a property from a rental and trying to sell it is make sure it’s move-in ready,” Belin advises.
Buyers in today’s market are unwilling to take on renovation projects, expecting homes to be clean, updated, and immediately livable. “Nobody wants to do that. Nobody has the time or patience. Trying to buy a house is challenging enough—they don’t then want a project after that,” she says. Investors are focusing on modest upgrades—fresh paint, new flooring, minor repairs—rather than major overhauls, to meet these expectations and achieve faster sales.
Looking Beyond Central Denver
While Denver remains the focus of most headlines, Belin identifies strong opportunities in surrounding cities. “The Denver market—it’s not just necessarily Denver. Aurora has many great opportunities. Lakewood, Arvada, and Westminster have a lot of great opportunities,” she says.
These secondary markets provide better value and less competition for investors willing to look beyond the most publicized neighborhoods. As Denver’s core becomes more expensive and competitive, these areas offer access to properties with more substantial cash flow potential.
What’s Next for Denver Investors
The forces shaping Denver’s investment property market—rising insurance costs, increased labor and material expenses, and new regulatory hurdles—are likely to persist. These are not short-term disruptions, but ongoing challenges that require investors to rethink their strategies.
For those willing to adapt, opportunities remain. Creative financing, targeted property types like small multifamily and midterm rentals, and exploration of secondary markets all offer paths to success. The days of easy, low-maintenance investments are essentially over, replaced by a market that rewards careful analysis and flexible deal-making.
As Belin’s experience shows, success in Denver’s current market demands in-depth local knowledge and the ability to bridge investment, management, and sales expertise. Investors who evolve their approach—by embracing new financing models, identifying emerging niches, and preparing properties to meet buyer expectations—can still find profitable opportunities, even if the playbook looks very different from just a few years ago.
