Introduction

Investing in rental properties can be a lucrative way to build wealth and secure financial stability. A key factor in making a successful investment is choosing the right property in the right location. A good rental property typically offers a combination of affordability, strong rental demand, and potential for appreciation. Location is critical as it influences the property’s rental income, vacancy rates, and overall return on investment.

Denver County, CO, with its vibrant culture, robust economy, and scenic beauty, is an attractive location for real estate investment. This guide explores some of the best neighborhoods and areas in Denver County for rental property investments, providing insights and grading each area based on convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and the ‘x-factor’.

Best Neighborhoods and Areas in Denver County, CO

1. Downtown Denver

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A+
• Average Home Prices: C
• Return on Investment: B+
• Proximity to Work-Related Travel: A
• X-Factor: A+

Downtown Denver is the heart of the city, bustling with activity and offering a diverse range of amenities.

Convenience: Downtown Denver is highly convenient, with easy access to public transportation, major highways, and Denver International Airport. The area is walkable, with numerous shops, restaurants, and services within a short distance.

Tourist Attractions: The area is rich in attractions such as the Denver Art Museum, Coors Field, and the Colorado Convention Center. These landmarks draw tourists year-round, enhancing rental demand.

Things to Do: Downtown Denver offers a plethora of activities, from cultural events and dining to nightlife and shopping. The 16th Street Mall, a pedestrian-friendly area, is a popular spot for both locals and visitors.

Average Home Prices: Home prices in Downtown Denver are relatively high, reflecting the area's desirability. However, the potential for rental income is significant, balancing the higher initial investment.

Return on Investment: Despite higher home prices, the rental demand and potential for appreciation offer a strong return on investment. Properties here are often rented at premium rates.

Proximity to Work-Related Travel: The area is ideal for professionals, with close proximity to business hubs, hospitals, and the Colorado Convention Center.

X-Factor: Downtown Denver’s unique blend of urban sophistication, cultural richness, and vibrant nightlife makes it exceptionally desirable for a wide range of renters.

2. Cherry Creek

Grades:

• Convenience: A-
• Tourist Attractions: B+
• Things to Do: A
• Average Home Prices: B-
• Return on Investment: A-
• Proximity to Work-Related Travel: B+
• X-Factor: A

Cherry Creek is a stylish and upscale neighborhood known for its shopping and dining options.

Convenience: Cherry Creek is conveniently located near major highways and public transportation, making it easy to commute to other parts of Denver.

Tourist Attractions: While it may not have the same density of tourist attractions as Downtown, Cherry Creek boasts the Cherry Creek Shopping Center and the annual Cherry Creek Arts Festival.

Things to Do: The neighborhood offers an array of activities, including high-end shopping, gourmet dining, and outdoor recreation along the Cherry Creek Trail.

Average Home Prices: Home prices in Cherry Creek are higher than the city average but offer good value given the neighborhood’s amenities and appeal.

Return on Investment: The combination of high rental demand and property value appreciation makes Cherry Creek a solid investment choice.

Proximity to Work-Related Travel: Cherry Creek is close to several business districts and a short drive from Downtown, making it suitable for professionals.

X-Factor: The upscale lifestyle, combined with a vibrant arts scene and beautiful green spaces, gives Cherry Creek its unique charm.

3. Capitol Hill

Grades:

• Convenience: B+
• Tourist Attractions: B+
• Things to Do: A
• Average Home Prices: B+
• Return on Investment: A-
• Proximity to Work-Related Travel: B
• X-Factor: B+

Capitol Hill is known for its historic architecture, eclectic vibe, and central location.

Convenience: The area is well-connected with public transportation options and is within walking distance to many parts of Downtown Denver.

Tourist Attractions: Attractions include the Colorado State Capitol, the Molly Brown House Museum, and various historic landmarks.

Things to Do: Capitol Hill is vibrant with nightlife, music venues, restaurants, and coffee shops. Cheesman Park offers a lovely green space for outdoor activities.

Average Home Prices: Prices in Capitol Hill are more affordable compared to Downtown and Cherry Creek, making it attractive for investors.

Return on Investment: Strong rental demand from young professionals and students contributes to a good ROI in this neighborhood.

Proximity to Work-Related Travel: Capitol Hill's central location makes it convenient for professionals working in various parts of the city.

X-Factor: The neighborhood's unique mix of historic charm, artistic flair, and vibrant nightlife makes it stand out.

4. Highlands

Grades:

• Convenience: B+
• Tourist Attractions: B
• Things to Do: A-
• Average Home Prices: B
• Return on Investment: B+
• Proximity to Work-Related Travel: B
• X-Factor: A

Highlands is a trendy neighborhood known for its picturesque streets and community feel.

Convenience: Highlands offers good connectivity to Downtown Denver and other parts of the city via major roads and public transportation.

Tourist Attractions: While not a primary tourist destination, Highlands attracts visitors with its local charm, including Highland Square and Tennyson Street.

Things to Do: The area is known for its boutique shops, local eateries, and a vibrant cultural scene. Sloan's Lake offers recreational opportunities.

Average Home Prices: Home prices in Highlands are moderate, providing a balance between affordability and desirability.

Return on Investment: The neighborhood's popularity and ongoing development projects suggest strong future appreciation and rental demand.

Proximity to Work-Related Travel: Highlands is close to Downtown Denver and major employment centers, making it convenient for commuters.

X-Factor: The neighborhood's blend of historic architecture, modern amenities, and community spirit gives it a unique appeal.

5. Washington Park

Grades:

• Convenience: B+
• Tourist Attractions: B
• Things to Do: A-
• Average Home Prices: B-
• Return on Investment: B+
• Proximity to Work-Related Travel: B+
• X-Factor: A

Washington Park, commonly known as Wash Park, is a picturesque neighborhood with a large, beautiful park at its center.

Convenience: The neighborhood is well-connected with major roads and public transportation, making it easy to access other parts of the city.

Tourist Attractions: The primary attraction is Washington Park itself, offering expansive green space, lakes, and recreation facilities.

Things to Do: Outdoor activities are a highlight, with jogging paths, gardens, and sports facilities. Nearby shops and restaurants add to the appeal.

Average Home Prices: Home prices in Washington Park are relatively high, reflecting its desirability as a residential area.

Return on Investment: The neighborhood's popularity and quality of life contribute to steady rental demand and property appreciation.

Proximity to Work-Related Travel: Washington Park is close to Downtown and major business districts, making it convenient for professionals.

X-Factor: The stunning park, combined with a family-friendly atmosphere and high quality of life, makes Washington Park uniquely attractive.

Conclusion

Denver County offers a range of neighborhoods each with unique characteristics and investment potential. From the bustling Downtown area to the charming Washington Park, investors can find properties that meet their criteria for convenience, attractions, and return on investment. Evaluating these areas based on the provided grades can help investors make informed decisions to unlock the investment potential of rental properties in Denver County, CO.