Why South Aurora, Colorado Is a Hidden Gem for First‑Time Home Investors
- Ben Willson
- May 23
- 4 min read
If you’re thinking about buying your first investment property, the Denver metro area can feel a little… unwelcoming. High prices, thin margins, and bidding wars have pushed many first-time investors to the sidelines.
But if you zoom just a bit southeast of downtown, you’ll find something different — a pocket of homes in South Aurora that are still affordable, quietly appreciating, and backed by real rental demand.
This isn’t just hype. Let’s break down why South Aurora is one of the smartest — and most overlooked — places to start your investment journey in Colorado.
1. Four Investment Strategies That Actually Work Here
South Aurora isn’t a one-trick pony. Depending on your goals and budget, you can find opportunities across several types of real estate investing:
Buy-and-Hold Rentals
The bread and butter of long-term wealth-building.
Median home price in 80013 (Q1 2025): ~$460,000
Average rent for 3-bed single family: $2,350/month
Rent-to-price ratio: ~0.51% (above Colorado average)
In neighborhoods like Hutchinson Heights, Seven Hills, and Aurora Highlands, homes are appreciating faster than other suburbs, with updated properties fetching premium rents. These areas are also attracting long-term tenants like military families, nurses, and young professionals.
House Hacking
Buy a home, live in it, rent out part of it — basement suites or roommate-friendly layouts work well here.
Many South Aurora homes have finished basements with separate entrances, ideal for this strategy.
Zoning in some areas even allows accessory dwelling units (ADUs) or short-term leases.
House hacking is especially viable near Buckley Space Force Base or Anschutz Medical Campus, where renters prefer flexible leases and proximity to work.
Short-Term Rentals (STR)
Caveat: Aurora has specific STR regulations — you must live in the home as your primary residence to qualify.
That said, for owner-occupiers who qualify, there’s a strong market for travel nurses, medical professionals, and visiting families — particularly near Children’s Hospital Colorado and VA Medical Center.
Check Aurora’s STR policy page for the most current info.
Fix-and-Flip
This is where South Aurora really shines — especially in up-and-coming pockets like Kingsborough, Aurora Hills, and Tollgate Village, where inventory from the 1970s–80s is still waiting for a refresh.
Homes with cosmetic issues but strong bones can often be purchased for $400K–$450K
After reno, ARVs (after-repair values) in 2025 are hitting $525K–$575K, depending on quality
Margins are tight, but they’re real — especially if you’re handy or have access to a trusted contractor network.
2. Why South Aurora Is Better Than You Think
Price Per Square Foot Advantage
Compared to Denver, Parker, or even Centennial, South Aurora still offers lower cost per square foot with comparable amenities. That means better margins and more flexibility in your financing strategy.
Proximity to Major Employers
Anschutz Medical Campus
Buckley Space Force Base
Fitzsimons Innovation Community
These employers create a consistent rental pool of high-quality tenants. You’re not hoping someone finds your unit — demand is already baked in.
Appreciation in the Right Zip Codes
According to Zillow and Redfin data:
80013 and 80014 are showing year-over-year appreciation between 4.5%–6.2%, despite market normalization
Neighborhoods like Sterling Hills, Side Creek, and Summer Valley are getting attention from both owner-occupants and institutional buyers
Light Rail + I-225 Access
Easy commuter access without downtown Denver headaches. Tenants love the combo of suburban quiet and metro convenience. This helps reduce vacancy rates and improves rent stability.
3. What Kind of Properties to Actually Look For
Focus on:
3-4 bedroom single-family homes built after 1975
With finished basements, newer windows/roof, and no HOA or low-fee HOAs
In school zones with good or improving ratings — many renters with families filter by this first
Avoid:
Outdated properties with deferred maintenance — unless you’re flipping
Homes near large commercial zones or busy intersections that make resale harder
Units with high monthly fees eating into your ROI
4. The Confidence Gap: Why New Investors Get Stuck — and How We Help
If you’re buying your first property, the biggest obstacle isn’t money — it’s clarity. The “what ifs” pile up:
What if I pick the wrong neighborhood?
What if I overpay?
What if the rent doesn’t cover the mortgage?
What if I have no clue what I’m doing?
That’s exactly where we come in.
As local market guides, we help new investors pick the right neighborhoods, run the numbers, and build an investment strategy that makes sense in the real world — not just in a spreadsheet. We know what rent will actually command, which homes will appreciate faster, and which corners to avoid.
5. Free Tools to Help You Run the Numbers Like a Pro
Here are a few totally free tools you can link to or embed on your site to help build trust with readers:
Final Word: South Aurora Isn’t a Secret for Long
First-time investors who play it safe often wait too long. But South Aurora has all the signals of a smart, accessible investment market — without the sticker shock of Denver, the bidding wars of Highlands Ranch, or the slowdown in Boulder.
It’s where long-term rentals make sense. Appreciation is real. And the entry point is still reasonable — for now.
Want a local’s eye on your first investment?
Let’s hop on a 20-minute strategy call to break down your budget, timeline, and goals — no fluff, just smart numbers and a plan that actually works.
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