Christine Belin, a real estate broker at Evernest, reports that Denver investors are steadily moving away from townhomes and condos and focusing on duplexes, quadplexes, and larger multifamily properties. After years of building portfolios around single-unit properties, small investors are now selling those holdings and reinvesting in buildings with multiple units under one roof.
This is not just a short-term response to market conditions. Belin says the change reflects a new reality about which property types can deliver acceptable returns for individual investors in Denver.
Belin sees a clear pattern in current transactions: “People who are entering the market to start investing are more focused on duplexes, quadplexes, and larger multifamily like 8, 10, or 20-unit buildings,” she says.
While recent public data may not fully reflect this trend, Belin notes that institutional investors have left mainly the Denver market as higher interest rates make their acquisition strategies less viable. In contrast, individual and small-scale investors—who make up most of Denver’s rental property owners—are adapting to new conditions by targeting multifamily properties. These investors are using creative financing, such as seller financing, to make deals work despite tighter lending and increased costs.
“Small investors are still out there finding deals, while major institutional investors are mostly waiting on the sidelines,” Belin says. “Mom-and-pop investors are figuring out ways to make the deals work, including seller financing.”
Multifamily properties offer several advantages that are especially relevant in today’s market. A duplex or fourplex provides multiple rental streams from a single property, spreading out risk and reducing the impact of a single vacancy. This diversification is increasingly important as new regulations, such as 90-day notice requirements, make tenant transitions more complex.
With a four-unit building, for example, an investor can stagger tenant move-outs, rather than risk a property sitting entirely vacant. This flexibility is valuable as managing turnover and compliance becomes more involved.
At the same time, the economics of single-unit properties within HOA communities have become less favorable. Rising HOA fees, increased insurance costs, and new landlord regulations have made it harder for small investors to maintain profitability with condos and townhomes. Belin says investors are “moving away from purchasing any sort of townhomes or condos that used to be the easy button” due to these headwinds.
Belin identifies purpose-built rental construction as a promising but underexplored opportunity. She points to growing interest in new construction of smaller multifamily buildings—typically eight to twelve units—designed for individual investors rather than large institutions.
“If you can build to rent, that is a potential market that may be overlooked right now,” Belin says. This segment offers a middle ground between traditional single-family rentals and larger institutional projects, and she expects more activity as investors seek properties that align with current market dynamics.
For new investors, the shift toward multifamily presents both obstacles and advantages. Entry costs are higher, and underwriting is more complex than for single condos or townhomes. Those who can clear these hurdles, however, are finding that multifamily properties offer more resilient income and greater flexibility in a changing regulatory environment.
Still, Belin notes there are selective opportunities in the condo and townhome market for investors willing to do the work. “Now is a great time to buy them when the value is down, because it’s still housing,” she says. “As long as the HOA is in good standing, has taken care of the community, and fees aren’t too high, there are opportunities for new investors to get started.”
However, she cautions that this requires careful due diligence on HOA financials and insurance—tasks that many first-time investors may find challenging without professional guidance.
Evernest, where Belin is the sole Colorado broker, operates in 50 markets nationally and combines property management with brokerage services. This allows the firm to support investors through the whole cycle: acquiring, operating, and transitioning between property types as market conditions dictate.
Belin has focused on helping clients move away from single-unit HOA properties and into multifamily holdings. She coordinates tenant transitions, prepares properties for sale, and identifies new multifamily acquisitions that reflect current market realities.
Looking ahead, whether other brokerages will follow Evernest’s lead and develop multifamily-focused services for individual investors may depend on how quickly the industry adapts to the new economics of small-scale rental ownership. For now, the Denver market is sending a clear signal: investors seeking stable returns and operational flexibility are prioritizing properties with multiple units under a single ownership.
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