You’re SMART to own Investment Property! 
BUT ... Does Your Investment Property Still Measure Up?

Whether you bought your Boulder area rental property initially as a long-term investment, or simply held onto a former residence when you moved into another, you have certainly been the beneficiary of an increase in value over the years. 
Congratulations on a wise financial decision!
For example:
  • Boulder’s Median Sales Price of $535,000 is up 28.9% over the past 5 years (from $415,000 2003), even though it did slip 5% over the past year.
  • And Louisville’s Median of $365,000 held steady from 2007-2008; and is up 27.6% over 5 years from $286,000 in 2003.

Selling, Exchanging, or Refinancing may be your next great decision.


Even if you're getting a positive cash flow, and enjoying tax benefits; it's a good idea to consider how your property is performing in terms Return on Equity. Given years of appreciation and principal payments, you probably have a lot more money tied up in it than you did at the beginning, unless you refinanced and took cash out.
 
As a savvy investor you probably looked at your Return on Investment (ROI) when you decided to buy or keep your property. Return on Equity (ROE) is the same thing, except you evaluate your return based on the current equity generating it. Typically, equity increases faster than rental income. The net effect is that as your Equity grows, your Return percentage gets smaller every year.
 
Don’t take my word for this. Please click and read the article by Tom Lundstedt.
He is a nationally known speaker on investment real estate. You may laugh at the Market Value used in his ROE Worksheet, but the basic calculations are valid. Just substitute your own figures in the “Your Property” column.
 
If you think it may be time to Sell, Exchange, or Refinance your property in or around Boulder County, please contact me for a No Cost, No Obligation Consultation. I will gladly provide market value information, answer your questions, and give you names and numbers of lenders and/or exchange services to help you make an informed decision.