Top Neighborhoods in Golden, CO for House Hackers to Thrive

Golden, Colorado, a city known for its stunning natural beauty and rich history, is increasingly becoming a hotspot for real estate investors, particularly those interested in house hacking. House hacking, a strategy where you live in one unit of a multi-unit property while renting out the others, can significantly reduce or even eliminate your monthly mortgage payments, all while building equity. This makes it an attractive option for those looking to get into real estate without being overwhelmed by high property prices and mortgages.

Golden, with its diverse neighborhoods and proximity to both the mountains and Denver, offers a fertile ground for this approach. Its unique charm, thriving rental market, and range of housing options make it a standout destination for house hackers.

Why Golden is a Prime Location for House Hacking

Golden's appeal for house hackers stems from its unique combination of factors:

Proximity to Nature: Nestled at the foot of the Rocky Mountains, Golden offers easy access to hiking, biking, and other outdoor activities. This is a major draw for potential tenants, particularly those who enjoy an active lifestyle. The town is surrounded by mesas and mountains, offering outstanding outdoor recreation. Iconic spots like Clear Creek and North Table Mountain are just a short drive or walk away, making outdoor adventures a daily possibility.

Access to Denver: Despite its secluded feel, Golden is just a short drive from Denver, making it attractive for commuters. The commute into the heart of Denver is about 30 minutes, excluding traffic. The city is also near other walkable downtown areas such as Old Town Arvada, Morrison, and Littleton. Public transit options, including the RTD Light Rail, enhance its connectivity to the metro area, making it convenient for those who work in Denver but prefer a quieter home base.

Diverse Housing Options: Golden offers a variety of housing types, from historic homes in the downtown area to mountain properties and newer builds. This variety provides flexibility for house hackers looking for properties that fit their specific needs. Whether you prefer a cozy duplex or a spacious home with an accessory dwelling unit (ADU), Golden has options for every investor.

Strong Rental Market: The demand for rentals in Golden is strong, making it easier to find tenants and ensure a steady income stream. This is bolstered by the town's popularity as a place to live and visit. Its proximity to the Colorado School of Mines and outdoor recreation hotspots contributes to a steady flow of renters, including students, professionals, and outdoor enthusiasts.

Small-Town Charm with Modern Amenities: Golden combines a historic, small-town feel with modern conveniences, making it attractive to a wide range of tenants. Local breweries, boutique shops, and a variety of dining options give the town a unique vibe that appeals to renters seeking character and community.

Golden Neighborhoods to Target for House Hacking

While Golden offers many attractive areas, some neighborhoods are particularly well-suited for house hacking due to their location, property types, and rental market.

Applewood West

Applewood West is a neighborhood that straddles Golden, Lakewood, and Wheat Ridge, with the majority of homes in Golden and Lakewood. It's a fantastic option for those looking for a balance between proximity to the foothills and a short commute to Denver. Here’s why it stands out for house hackers:

Location: Applewood is west of I-25, providing quick access to trails, foothills, and hiking while also being close to the city. This is a major draw for potential tenants.

Lot Sizes and Homes: The neighborhood features homes with large lot sizes, with a median lot size of just under a third of an acre. Homes range in size from 1,200 to over 7,000 square feet, offering a variety of options for house hackers. Many homes were built in the mid-20th century, but there are also newer properties.

Character and Community: Applewood has a deep-rooted sense of community, with families often returning to the area generation after generation. The area has mature trees, great neighbors, and access to open spaces and trails. There are over 20 parks in and near Applewood, providing recreational opportunities for all ages.

Access to Downtown Areas: Applewood has great access to walkable downtown areas, such as Golden, Old Town Arvada, Morrison, Wheat Ridge, and Littleton. This makes it attractive to tenants seeking a vibrant lifestyle.

Home Prices: Home prices in Applewood range from $500,000 to $2.5 million, with a median price of around $775,000. There are a variety of options in terms of the price and condition of the properties available. According to one source, the average value of homes in Applewood West is $970K with list prices between $415K - $2.7M.

While Applewood has many positives, it is not a planned community, which may be a downside for some people. The area also does not align with the highest-rated Jeffco high schools, which might be a consideration for families.

Historic Downtown Golden

Historic Downtown Golden is an ideal choice for those looking for a vibrant urban feel. It is located at the base of the Rocky Mountain foothills, south of Boulder and west of Denver. This area offers:

Walkability: The area is highly walkable, with easy access to restaurants, breweries, and shops. For tenants who value convenience and a car-free lifestyle, this is a top choice.

Attractions: Downtown Golden features attractions such as the Clear Creek Trail, North Table Mountain, and a farmers market from June to October. The area is known for its old mining town feel, attracting tourists and locals alike. Seasonal events and festivals further enhance its charm.

Proximity to Denver: Downtown Golden is close to both the mountains and Denver, with convenient highway access. The ability to enjoy a mix of urban and outdoor lifestyles makes it a unique location.

Mix of Housing: The area features a mix of historic homes and newer developments. While single-family homes are less common, there are a variety of condos and townhomes to choose from.

Price Range: The average value for homes in Downtown Golden is around $997K, with list prices between $564K - $2M.

The downtown area is popular, making it a prime location for attracting tenants. Its blend of history and modern amenities ensures a wide appeal.

Sixth Avenue West

Sixth Avenue West offers a suburban feel while being close to outdoor amenities. It is situated near Green Mountain, providing quick access to hiking and multi-use trails. This area offers:

Outdoor Lifestyle: The neighborhood is close to William F. Hayden Park, offering numerous outdoor activities. Its proximity to trails makes it a favorite for active renters.

Suburban Living: The neighborhood features large traditional properties on sizable lots. Many homes were built in the 1970s and offer mid-century charm.

Walkability: It is a walkable community with easy access to local trails.

Price Point: The average value of homes in Sixth Avenue West is $814K with list prices ranging from $403K - $1.5M.

This area is great for house hackers looking for a quieter, more suburban setting with access to nature. Its family-friendly atmosphere is a significant draw.

Southridge-Golden

Southridge-Golden is a residential area located about 2 miles from downtown, offering a blend of convenience and natural beauty. The neighborhood is sandwiched between shopping and dining to the west and a mountainous landscape to the east. Key features include:

Convenient Location: Residents have easy access to highways and the mountains.

Shopping and Dining: The area is close to shopping and dining options, providing tenants with plenty of conveniences.

Residential Setting: It's a residential neighborhood, which can be appealing to tenants seeking a quiet place to live.

Price Range: The average value of homes in Southridge-Golden is $798K with list prices between $645K - $1.1M.

Southridge-Golden is a good option for house hackers who want a blend of urban and outdoor living. Its tranquil environment appeals to renters who want to escape the hustle and bustle of downtown.

Lookout Mountain

Lookout Mountain is a neighborhood that offers stunning views and a mountain resort atmosphere. It’s ideal for those looking for a more secluded feel with access to nature:

Natural Beauty: The area offers sweeping views of the Front Range. It's a haven for those seeking solitude without sacrificing modern conveniences.

Mountain Lifestyle: Lookout Mountain offers a mountain resort-like atmosphere without feeling too remote.

Commuting Distance: The neighborhood is within 20 miles of Boulder and 15 miles from Denver, making it popular with commuters.

Price Range: The average value of homes in Lookout Mountain is $1.24M with list prices ranging from $777K - $2.4M.

This area is excellent for house hackers who prioritize views and a mountain-style lifestyle. It’s particularly appealing to renters seeking peace and scenic surroundings.

How to Start House Hacking in Golden

Embarking on a house hacking journey in Golden requires a strategic plan:

Understand House Hacking: Familiarize yourself with the concept of house hacking and how it aligns with your financial goals. Educate yourself on the benefits, such as reduced living expenses and long-term wealth building.

Scout for Multifamily Homes: Look for multifamily homes for sale in your desired neighborhoods. A real estate agent specializing in investment properties can be a great help. Utilize online resources and local networks to find potential properties.

Analyze the Rental Market: Research local rental rates to ensure a good return on your investment (ROI). Compare properties to understand which neighborhoods provide the best rental income potential.

Secure Financing: Determine what type of mortgage is best for your situation. FHA and VA loans are options for first-time house hackers due to their lower down payment requirements. Work with a mortgage broker to explore financing options.

Consider Different Types of Properties: In addition to duplexes, triplexes, and fourplexes, consider homes with basements or accessory dwelling units (ADUs) that can be converted into rental spaces. These offer creative ways to maximize rental income.

Tenant Screening: Conduct thorough tenant screenings to find reliable and long-term tenants. A rigorous vetting process can save you headaches down the line.

Maintenance: Keep your property in good repair to reduce tenant turnover. Regular maintenance also helps maintain the value of your investment.

Property Management: Decide if you will self-manage your property or hire a professional property management company. If you’re new to real estate, a management company can help handle tenant relations and maintenance.

Financing Your House Hack in Golden

Financing is a critical aspect of house hacking. Here are some key points to consider:

Loan Types:

• FHA Loans: These are great for first-time house hackers with low down payment requirements (as low as 3.5%).

• VA Loans: These are available for eligible veterans and offer no down payment requirements.

• Conventional Loans: These have options for 5% down if the property is a primary residence. They may require private mortgage insurance (PMI) with lower down payments.

Down Payments: For owner-occupied multifamily properties, you may need to put down as little as 3.5% with an FHA loan, or 0% with a VA loan, but conventional loans can have a 15% down payment requirement for owner-occupied properties.

Closing Costs: Closing costs typically range from 2% to 5% of the purchase price and include loan origination fees, appraisal fees, title insurance, inspection fees, recording fees, and underwriting fees.

Using Rent: Your rental income from the other units can help offset your mortgage payments. Lenders may even consider projected rental income when qualifying you for a loan.

Refinancing: Look for opportunities to refinance your mortgage later if rates fall. This can help reduce monthly payments and increase cash flow.

Related Article: Reducing Expenses in House Hacking: A Golden Opportunity in Golden, CO

Potential Challenges and How to Avoid Them

While house hacking can be a great way to enter the real estate market, it’s important to be aware of potential pitfalls:

Market Conditions: In today's market, there is a discrepancy between the existing supply of homes and buyer demand. It can be a seller's market, making it challenging to find properties at competitive prices.

Property Condition: You may encounter properties with deferred maintenance, so make sure to get a thorough inspection. Factor in renovation costs when budgeting for your investment.

Cash Flow: Do not assume your rental property will pay all of your mortgage. Focus on it being cheaper than if you did not house hack. Aim for properties where rental income offsets a significant portion of your expenses.

Location: Avoid buying properties in the worst areas where the rents are going up the least. It’s important to choose areas with rising rents and property values. Proximity to schools, transportation, and amenities can enhance a property's desirability.

Discomfort: House hacking can come at the cost of comfort, convenience, and peace of mind. Sharing your living space with tenants requires adaptability and clear boundaries.

Tenant Management: If you struggle with setting boundaries, consider hiring a property manager. Managing tenants can be time-consuming, especially if you’re new to real estate.

Final Thoughts

Golden, Colorado, is an exceptional place for house hackers to thrive. With its proximity to nature, easy access to Denver, diverse neighborhoods, and strong rental market, Golden offers a unique blend of opportunities for real estate investors. By carefully planning, choosing the right property, and managing it effectively, house hackers can unlock a pathway to financial freedom.

Remember to do your due diligence, research the market, and work with experienced professionals to achieve your real estate goals in Golden. With the right approach, house hacking can be your first step toward building wealth and financial independence in one of Colorado's most picturesque and thriving communities.

Interested in House Hacking in Golden, Colorado? Contact FootHills Fine Homes Today!