BRRRR in Fort Collins, Colorado
Local considerations for Fort Collins BRRRR projects, plus financing guidance tailored to investors.
Local Snapshot — Fort Collins, Colorado
Fort Collins combines university stability with tech sector growth creating strong BRRRR fundamentals. Colorado State University provides consistent rental demand while brewing industry and tech companies support high-income residents. The market offers premium rental rates with stable tenant base from students and professionals.
Median 3BR Rent$2,500
Median Home Price$520,000
Rent-to-Price Ratio0.58%
Est. Property Tax Rate0.5%
Vacancy Rate3.7%
5y Population Growth7.1%
Avg Days on Market45 days
Last updated: 2024-09-24
Local BRRRR Notes
- Inventory & comps: Verify comparable sales supporting your ARV; track days on market and supply trends.
- Rent checks: Confirm realistic rent using multiple sources; underwrite concessions and lease‑up time.
- Permit timelines: Speak with local building departments for scope‑specific requirements.
- Contractor bench: Line up multiple bids and references; enforce clear milestone payments.
- Exit & DSCR: Size loan proceeds under conservative DSCR and rate scenarios.
Talk to a financing specialist to structure your deal.
Financing Benchmarks
- Target DSCR ≥ 1.35–1.45x given higher acquisition costs and market competitiveness.
- Purchase LTV typically 70–80% due to price volatility and market conditions.
- Refi LTV commonly 65–75% with lenders requiring updated appraisals and market analysis.
- Seasoning requirements 6–12 months; some lenders require longer given market volatility.
- Carry 15–20% rehab contingency due to skilled labor costs and material availability issues.
- Maintain 12–18 months reserves given economic sensitivity and seasonal variations.
- Insurance costs moderate; wildfire coverage considerations in certain areas.