Aurora condos are typically the best cash flowing investment properties in the current Denver metro real estate market. Our clients picked up their third rental property in Aurora. This is a great property because it’s fully remodeled and ready to go.

There is a relatively easy value-add play of turning a second living room into a fourth bedroom by adding a door and some drywall work. More bedrooms = more rental income.

Investor Profile

• Business owners looking to build a rental portfolio for long term retirement planning
• Also wanted diversification from the stock market
• Fast decision makers, which helped them win this deal

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Rental Properties.

Investment Property Details

• Type: Condo, End Unit
• 3 bedroom, 2 bathroom
• Location: Aurora
• List Price: $259,973
• Purchase Price: $259,000
• Why we liked it:
  • 3 bedroom, but 4^th bedroom buildout
  • Fully remodeled, rent ready
  • End unit
  • Near the pool

Property Contract Details

• Finding the property: Team and clients were watching MLS searches for potential rental properties. This condo popped up. It looks great and in a complex we like.  We acted fast, wrote a strong offer and tight contract. Clients moved quickly which helped us win it.
• Under contract:  Under list price and quick close.
• Inspection Concerns:
  • None
• Inspection negotiation outcome:
  • None

Property Financing Details

• Lender: Conventional
• Loan Type: 25% down conventional
• Appraisal: Above list price!
• Seller Concessions: 0
• PMI: None – 25% down
• Interest Rate Buy Down?: No

Spreadsheet Analysis

Property Operating Expenses

First Year Returns

Conclusion

Since this condo is a high quality (not a ”lipstick on a pig”) remodel, this rental should have minimal repairs for the first few years. It’s a great Aurora complex which will always be in high demand from both renters and first-time buyers.

The investors have the option of keeping it as a rental (and increasing cash flow with a fourth bedroom) or potentially selling it in 5 to 7 years to maximize their return on equity by trading up into a bigger and better rental property.

Either way, it’s a great long term investment! We’ll sit down with our clients on a regular basis to help them determine the best plan for this property based on the market and their needs.

Video: Deal Analysis – Aurora Rental Condo With Value Add Play

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