Deal Analysis – Colorado Springs House Hack Near Downtown

This deal highlight shows a House Hack opportunity on the MLS.  This property is centrally located, very close to downtown Colorado Springs.  It also already has a kitchenette and second entrance, lending itself to being an easy conversion to a second living space.  Further, it is zoned appropriately at R-4 (meaning multi-family units are authorized) to allow for a 2-family set-up.

Property Deal Analysis Overview

This deal highlight shows a house hack opportunity on the MLS.  This property is centrally located, very close to downtown Colorado Springs.  It also already has a kitchenette and second entrance, lending itself to being an easy conversion to a second living space.  Further, it is zoned appropriately at R-4 (meaning multi-family units are authorized) to allow for a 2-family set-up.

This property is available.

Three Learning Options!
  1. Listen to the podcast “#198: Deal Analysis – Colorado Springs House Hack Near Downtown” 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.

Read about the State of the Market for Colorado Springs real estate Q3 2020.

Deal Quadrant: MLS

Real estate deal analysis quadrant

Read about the deal quadrant and finding Denver Rental Properties.

Investment Property Details

  • Type: 3 bed, 2 bath, ~1,500 square feet
  • Location: central Colorado Springs, very close to downtown
  • List Price: $315,000
  • Why we like it:
    • Location!
    • Zoned R-4, lots of opportunity
    • Already has a built-in kitchenette near the separate entrance- minimal work to get it ready for renters

Agent Property Description Remarks: Remodeled turn of the century home with a fresh and modern look that can be used as a single family home or a duplex, the property is zoned R4 which adds great possibilities for an investment and additional income, highly desirable location just a few blocks from the Center of Downtown Colorado Springs, lots of entertainment, restaurants, shopping, parks and much more. The property features an updated kitchen, dining area, 3/4 baths and 2 bedrooms, plus an additional living space with 1 bedroom, 1 full bath, a kitchenette and a separate entrance that would allow for the new owner to use this part of the house as a rental, new roof, upgraded vinyl windows, new flooring, new kitchen, new appliances, upgraded electric panel, gas stoves on main level and lower level.

Colorado Springs real estate map
Deal Analysis – Colorado Springs House Hack Near Downtown near N Nevada Ave and E Platte Ave

Spreadsheet Rental Analysis

deal analysis spreadsheet
deal analysis spreadsheet

Property Operating Expenses

property operating expenses analysis spreadsheet

First Year Returns

first year returns analysis spreadsheet

Conclusion

This property is ideal for a House Hack turned Nomad™ opportunity.  With only an assumed 5% down, conventional loan, it would be considered a breakeven cash flow opportunity.  There would be some upfront costs to partition off the separate living areas and to add to the already existing kitchenette.  Further, we assessed an 8% yearly repair/maintenance budget for this property which is very conservative since the home is recently fully-remodeled. If self-managed, the return would be even greater upon moving out.  Furthermore, the rents budgeted are on the very low end. Considering the proximity to downtown, each unit could easily get $100-150 more a month than budgeted.

YouTube Video: Rental Property Analysis Colorado Springs House Hack Near Downtown

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Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
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
Jenny Bayless
Jenny Bayless is an investor-friendly agent with Envision Advisors, Colorado real estate investor, and the host of the Colorado Springs Real Estate Investing podcast.
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