Investment Blog

2018 Tax Cut and Jobs Act

The tax bill for 2018 has many aspects that affect the real estate industry.  There are points that affect Homeowners, Commercial Real Estate, Investors, Real Estate Professionals, and the decision to rent or buy that first home.  This article from the National Accosiation of Realtors breaks down the basics.

National Association of Realtors Tax Reform Explained

2017 Boulder Real Estate Investment Wrap-Up

The past few years have been slim pickings in the Boulder multi-family market.  In 2017 there where 12 on market sales, and 4 buildings sold then entered into the MLS.  There were of course several off market sales such as 1707 Walnut St, a 44 bed property that sold for $15.6m, and 956 Marine, a 14 bed property that sold for $3.1m.

It's tough to get reliable information from a small data set like 16 multi-family listings, but we can get related information from the single family and condo markets in Boulder.

The median home price for a single family home in Boulder increase 2.4% in 2017 over 2016, and inventory was slightly up by 6.8%.  In the condo market we saw a 15.4% increase in inventory, which led to a 3.6% decline in the median values.  These numbers are significantly lower than 2016 over 2015.

Boulder is not seeing a bubble, however, one factor to a bubble is affordability.  At the end of 2017 the median income would not qualify to purchase a median priced home within the city limits.

These numbers were derived from MLS data, and as we know this information may not be complete.  Here are the average per bedroom rents, caps and GRM’s for the year.

Average rent per bedroom:  $883
Average Cap Rate:  4.4%
Average GRM:  18.9

© Kevin Schill 2018