This case study is talked about in the January Monthly Round Up.
- 3 Bedroom
- 2 Bathroom
- Purchase Price: $180,000
We like this property because we are very familiar with the complex and know that we can create cash flow immediately. In the current Denver market attached homes are cash flowing much better than single-family homes. This unit did not require any major rehab to get it rent ready which made for an ideal situation for this investor. This complex is non-warrantable, however, Joe Massey at Castle & Cooke Mortgage was able to underwrite the loan with a minimum 25% down payment on the unit.
The appraiser estimated the rents for this unit at $1,625 but with our experience working in this complex we know we can get $1850 through the Section 8 housing program. Even if this investor decides to not rent through the program he should be able to get $1800 for the unit.
This investor was able to get a 7.8% CAP rate in Denver, with an HOA, with a property management company. He is able to meet the 1% rule with this investment as well. This investors plans on holding the unit for the long term. He should be able to expect healthy appreciation and low vacancy. We love finding investors deals like this! If you are looking for investment like this or would like to know more information about this one you can contact me at [email protected] for financing options or information please reach out to Joe Massey at Castle & Cooke Mortgage, [email protected]