Rental Property Loans Made Easy: Grow Your Real Estate Portfolio

Rental properties are a terrific method to generate money and build wealth. However, you need adequate
funding to grow your portfolio properly. With a rental property loan in CO, you can thrive in
Colorado’s fast-paced real estate market. These loans provide reasonable rates, flexible periods, and
state-based guidance.

Overview

In general, rental property mortgage screening criteria differ from primary house mortgage norms.
Lenders may consider expected income, property quality, and ownership experience. The correct
rental property loan in CO can aid investors in Colorado’s fast-growing real estate industry.

Loan Options

Debt Service Coverage Ratio (DSCR) Loans: Ideal for buyers who prefer asset-based lending. These loans focus on the property’s income rather than the borrower’s personal income.

Portfolio Loans: Retained by the lender and not sold on the secondary market. Great for investors with multiple properties.

Commercial Loans: Suited for larger, mixed-use properties like apartments or retail buildings, with customized terms for experienced owners.

CO Market Trends

Rising Vacancy Rates & Cooling Rent Trends

In Q1 2025, Denver’s vacancy rate reached about 7% — its highest in 15 years — making it a renter-friendly market.

Demand & Appreciation Drivers

Market fluctuations and supply changes create opportunities for buyers using modern Mortgage for Rental Property programs.

Borrower Requirements

Credit Score: Most lenders prefer 660–680+, but flexible lenders may accept lower scores for strong deals.

Income & Documentation: DSCR loans rely on rental income instead of personal income — ideal for self-employed investors.

Experience: Experience with property management or renovations helps strengthen loan applications.

Property Type: Eligible properties include single-family homes, 2–4 unit apartments, condos, and more.

Why Choose Red Rock

Red Rock offers flexible loan terms that align with your investment goals — from long-term holds to BRRRR strategies.
As a Colorado-based provider, Red Rock understands the local market, zoning, and rental demand better than national lenders.

Case Studies

BRRRR Strategy Success

A Fort Collins investor renovated a duplex with a rehab loan, then refinanced with a DSCR loan through Red Rock to access equity — closing in under two weeks.

First-Time Landlord

A Colorado Springs buyer secured their first rental mortgage using rental income projections to qualify — generating steady monthly cash flow from day one.

Portfolio Refinance

A landlord with five properties refinanced them into a single portfolio loan with Red Rock, simplifying payments and improving cash flow.