This property closed Q3 – 2020.
Investor Profile
- Out of state investor
- Realistic expectations for returns
- Focused on long-term upside with location and good management
Three Learning Options!
- Listen to the podcast “#229: Deal Analysis – 11 Unit Apartment Building” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom.)
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Deal Quadrant: MLS
Read about the deal quadrant and finding Denver Investment Properties.
Investment Property Details
- Type: Apartment Building
- 11 bedrooms, 11 bathrooms
- Location: North Aurora near Stanley Marketplace
- List Price: $1,500,000
- Purchase Price: $1,400,000
- Why we liked it:
- Great Area
- Strong rental market
- Lots of new development in the area
- Potential on rental increases with better management
- Tenants in place
Property Contract Details
- Finding the property: We found this property through the MLS. It had been sitting on the MLS for awhile.
- Under contract: Below ask and secret sauce as we were able to negotiate a price that worked for both sides
- Inspection Concerns:
- Boiler & Balcony
- Inspection negotiation outcome:
- Able to negotiate $25k in seller concessions for new boiler and balcony repair
Property Financing Details
- Lender: Commercial
- Loan Type: 10 year ARM, 30 year amortization, 1% pre payment penalty
- Appraisal: Above
- Seller Concessions: $25,000
- PMI: N/A
- Interest Rate Buy Down?: No
Spreadsheet Rental Analysis
Property Operating Expenses
First Year Returns
Conclusion
For the location and condition of this property this was a solid deal and as you’ll see in the analysis, with a little bit of updating and better management this will be a low 6% CAP in Aurora that will benefit greatly from all of the development and Opportunity Zone work going on in the area.
YouTube Video:
Podcast: Play in new window | Download | Embed
