One of the trendiest places in Denver is the Lower Highland/Central Platte Valley area known as Lohi. The location is purely cosmopolitan with happening restaurants and other culture, such as the new contemporary art museum, as well as beautiful studio, one bedroom, two bedroom and three bedroom apartment buildings. Denver Lohi apartments are a great investment, and when you consider commercial real estate investing, apartments are often the first to come to mind. With that said, before you invest, you’ll need to ensure that you understand the risks involved in investing in commercial property in the Lohi area and in general.
Understand the Area
The Lohi area is a place know for young professionals, and that means the median age is around 33 to 34 years of age. Before you invest in an apartment in Lohi, you need to understand the area and the kind of people who will be renting from you. They are young, but they are educated and employed making them excellent renters.
Know How Much You’re Investing
To purchase one of the Denver Lohi apartments means you’ll be investing at least a million dollars and probably more for one of the buildings. Are you prepared to make such an investment, mainly if things go wrong in your structure, such as repairs, lack of rental payments, etc.?
Will Tenants Want to Live In Your Building?
The good news is that the Lohi area is a great place to live and a great place to invest. But each building and location is different. Are you considering a building where tenants will gladly want to live? Is there anything about the structure that could turn potential tenants off?
Understand all Zoning and Building Laws
Before you buy any commercial property, it’s crucial for you to understand the zoning and building laws. If you want to make changes to the inside or the outside of the building, you need to make sure you’re allowed to do it in accordance to the area’s zoning and building laws before you purchase the building.
Realize What it Means to be a Landlord
Becoming a landlord of an apartment building in Lohi comes with significant responsibilities. Even if you have the best tenants in the world who always pay their rent on time, you are still responsible for anything that may go wrong in the building. If the roof needs to be fixed, it’s your responsibility. If the mailboxes need to be upgraded, it’s your responsibility.
Hire a Good Real Estate Attorney
Before you purchase an apartment building, you’ll need a good real estate attorney. Real estate laws and the taxes involved, are complexed. That’s why it’s essential to have a professional on hand to walk you through the sale, and through any and all tax implications that exist after purchasing the property.
The Lohi area is attractive, dynamic and diverse with young professionals enjoying everything the area has to offer. Follow these tips before buying one of the Denver Lohi apartments to get the right start.