Deal Analysis – Colorado Springs Newly Renovated Duplex
This deal analysis is for a newly renovated duplex near Ft Carson. The investor buyer used the proceeds from a cash out refinance on rental properties that she had bought a few years ago to take advantage of the significantly low interest rates and equity growth on those properties. As a result, she wanted to redeploy the cash out proceeds into additional rental property. Listen to the episode to find out how she was able to get almost a 6 cap on a property that she didn’t have to put earned income into, rather was able to leverage equity from existing properties to redeploy.

This deal analysis is for a newly renovated duplex near Ft Carson.

This property closed Q1 – 2021.

Investor Profile

  • Owns multiple rental properties, and has owned them for several years
  • Typically likes to BRRRR, but this was a good opportunity for an easy win.

Two Learning Options!
  1. Listen to the podcast “#18: Deal Analysis – Colorado Springs Newly Renovated Duplex” on the Colorado Springs Real Estate Investing Podcast
  2. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast.

Deal Quadrant: Networking

Real Estate Deal Analysis Quadrant

Investment Property Details

  • Type: Duplex
  • 2 identical units: 2 bed, 1 bath, 1 car driveway
  • Location: Stratmoor
  • Initial Offer Price: $319,000
  • Purchase Price: $329,000
  • Why we liked it:
    • Turnkey
    • Fully renovated, stylish units
Colorado Springs real estate map
Newly renovated duplex near Fort Carson

Property Contract Details

  • Finding the property: Networking
  • Under contract:  Was the buyer’s agent on a similar property for a client down the street, and I liked the deal they bought so much, the seller had two other properties on the same street and same updates.
  • Inspection Concerns/Negotiation Outcome:
    • Sewer line!

Property Financing Details

  • Lender: CornerStone Home Lending
  • Loan Type: Conventional
  • Appraisal: At Value
  • Seller Concessions: $5,000 for closing costs and $3,750 to go towards the sewer line repair.
  • PMI: N/A
  • Interest Rate Buy Down?: Yes $2,775 for 1.125%, to 3.5%

Spreadsheet Rental Analysis

Deal Analysis spreadsheet newly renovated duplex

Property Operating Expenses

Property Operating Expenses analysis spreadsheet newly renovated duplex

First Year Returns

First year returns analysis spreadsheet newly renovated duplex

Conclusion

Similar to my townhouse I bought, I used the proceeds from a cash out refinance on rental properties that we had bought a few years ago, to take advantage of the significantly low interest rates and equity growth on those properties.  As a result, we wanted to redeploy the cash out proceeds into additional rental property.  I am very pleased to get almost a 6 cap on a property that I didn’t have to put earned income into, rather was able to leverage equity from existing properties to redeploy.

For more Colorado Springs Deal Analyses including house hacks and multi family properties, check out our Colorado Springs Deal Analyses page.

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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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