A couple of months ago we did an eight-part series called “Elevate Your Flip” with Derek Marlin. We got such good feedback from the series that we wanted to continue with it and do a quarterly update to talk about what’s going on in the market, what Derek is seeing on the flipping side, go over some statistics, and review some deals.
This is a unique fourplex in a great part of town. It’s a mixed-use building with residential, commercial, and retail. It’s on South Broadway near I-25 with great walkability. The area is seeing great growth from new class A apartment buildings and lots of restaurants and retail stores. The light rail is walking distance. The plan is to take the cash flow now and ride the wave of change and appreciation!
This property is an updated fourplex fourplex in Longmont, CO. It is a great location, only a few blocks off Main Street. Our client wanted a fourplex in an up-and-coming area with strong rental demand and upside for appreciation and rent increases. Acquiring this property is a big step in helping our client reach his early retirement goal.
Our client was an out of state investor with a small apartment building in Los Angeles, CA. He wanted to sell and 1031 the money to Denver for a better cap rate and future retirement plans of moving out to Denver. He has family in Denver who acted as ”boots on the ground” and to help manage the asset. We coordinated with the California agent, 1031 Qualified Intermediary, and all parties to get the transaction completed per the 1031 rules. There is significant upside in rents by upgrading the building electrical system and installing in unit washer/dryers and AC ductless mini-split systems.
This property is an established 8 unit in a desirable part of town near Denver University. 6 of the 8 units were recently updated with mostly long-term tenants. A plus is brick construction with low maintenance. There’s potential upside in turning two units, charging for parking and storage, bringing in better management, and bringing some units up to market rent. The long-term goal is to refinance into a non-recourse mortgage after updating units and rents are increased.
Some of the most asked questions we are receiving are from landlords wanting to know how rent collection is going during this pandemic and what they can expect. Instead of relaying the information third hand, we’ve decided to interview four property management companies to get the information straight from the source.
April is the first full month of data with the COIVD-19 pandemic. In addition to the monthly market stats, I want to share some great data points from the Colorado Real Estate Journal’s “Impacts from previous macroeconomic downturns.” It’s a great article on multifamily in Denver.
A Crowdsourced Book from Denver Investors Discussing Their Strategies and Goals This is the second edition of the book where local investors share their strategies and goals. If you’re like me, you enjoy reading and learning about investing online, but grow frustrated that 99.9% of it is not about our market — the Denver market! […]
The investment property discussed in this Deal Analysis is a 9 unit apartment building in Aurora near the Anschutz medical complex. Originally it was a 6 unit, but a previous owner converted it to a 9 unit which was approved by the city. The seller bought this one year before as an apartment flip. The previous owner was in over his head. There were major management and property issues. The current seller rehabbed eight out of the nine units, stabilized rents, and handled utility issues from the six to nine unit conversion.
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Chris Lopez purchased this Westminster fourplex in a 1031 exchange from an out of state property. Chris and the seller worked together so they could have a closing time favorable to both parties. It was very much a “win-win” transaction. The property was attractive to Chris, because it was renovated which should keep maintenance and capital expenditures low for many years. Higher cap rates could have been achieved with four individual condos, but keeping it simple with one transaction to minimize potential 1031 issues was ideal.