Deal Analysis – Arvada AirBnB House Hack

There are two different deal analyses discussed in this episode. #1 Living at the house while Airbning the mother-in-law suite in Arvada, CO. #2 A long term rental analysis for after they move out.

There are two different deal analyses discussed in this episode:

  • Living at the house while AirBnBing the mother-in-law suite in Arvada, CO.
  • A long term rental analysis for after they move out.

The clients purchased this house about one year before this deal analysis was published. That means we have almost a year’s worth of operating data to analyze.

This property closed in Q2 2019.

Investor Profile

  • Young professional couple
  • Relocated to Denver in 2018
  • Want to house hack to reduce living expenses and build a rental portfolio
  • Goal: Reduce mortgage to less than $1,000/mo

Three Learning Options!
  1. Listen to the podcast “#148: Deal Analysis – Arvada AirBnB House Hack” on the Denver Real Estate Investing Podcast
  2. Watch the YouTube video (at the bottom.)
  3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.

Deal Quadrant: MLS

Real Estate Deal Analysis Quadrant
The majority of Nomad™ and House Hacks are found on the MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details

  • Type: Detached house w/ mother-in-law (MIL) suite
  • 4 bedroom, 3 bath + MIL
  • Location: Arvada near Ralston Park
  • List Price: $424,900
  • Purchase Price: $435,000
  • Why we liked it:
    • Location – Bike to Olde Town
    • Perfect setup for house hacking
    • Turnkey, except MIL updates
    • Airbnb potential
    • New Exterior Siding
    • New Electrical
    • New Paint
    • New Carpet
denver real estate map
In Arvada near Wadsworth Blvd and W 58th Ave

Property Contract Details

  • Finding the property: Springtime = competitive, multiple offers. Above asking. After losing out on others, clients knew what they wanted.
  • Under contract:  Above ask and secret sauce
  • Inspection Concerns:
    • Minor electrical
    • Minor sewer settling, but typical for age of house.
  • Inspection negotiation outcome:
    • $2,000 seller credit
    • Fixed minor electrical issues
    • Routine HVAC service

Property Financing Details

  • Lender: Conventional
  • Loan Type: 5% down conventional
  • Appraisal: at value, no issues.
  • Seller Concessions: $2,000 towards closing costs
  • PMI: Monthly
  • Interest Rate Buy Down: Yes

Spreadsheet Analysis – While Living There

Home Deal Analysis spreadsheet - While Living There
Home Deal Analysis spreadsheet - While Living There

Property Operating Expenses

Property Operating Expenses analysis spreadsheet

First Year Returns

first-year returns on home sale

Spreadsheet Analysis – After Move Out

Home Deal Analysis spreadsheet - Move out
Home Deal Analysis spreadsheet - Move out

Property Operating Expenses

Property Operating Expenses analysis spreadsheet

First Year Returns

first-year returns on home sale

Conclusion

While they are living at the property, they are only paying about $300/mo in living expenses while maintaining a high quality of life. This is great! If they needed or wanted to, they could even reduce their living expenses more by charging their family member market rent. However, it’s a true win-win for them and their family member.

Anytime I see a positive cash flow number after they move out with a 5% down, I’m excited! It’s hard to get positive cash flow when you’re putting so little down.

Video: Deal Analysis – Arvada AirBnB House Hack

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Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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