Deal Analysis – Colorado Springs Partial BRRRR
This deal analysis breaks down an elusive Partial BRRRR in Colorado Springs. This property was sourced off-market through networking, met the investor’s deal profile, and closed Q4 – 2020. It’s a single family 3 bedroom 1 bath with room for equity play. Listen to the episode to run the numbers with our Colorado Springs agent Jenny Balyess.

Investor Profile

  • Purchased one rental property prior to this one
  • This is the first BRRRR property he purchased
Three Learning Options!
  1. Listen to the podcast “#14: Deal Analysis – Colorado Springs Partial BRRRR” on the Colorado Springs 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: Networking

Real Estate Deal Analysis Quadrant

Investment Property Details

  • Type: Single Family Home
  • 3 bedroom, 1 bathroom
  • Location: Platte and Circle
  • List Price: $211,000
  • Purchase Price: $211,000
  • Why we liked it:
    • Room for equity play
    • In good condition, needs some system work (electric, furnace, water heater)
    • Currently rented with a long-term tenant
    • This is buyer’s first BRRRR, and with the equity room, this will be a fantastic opportunity to learn the process and work with renovations with “room for mistake.”
Colorado Springs real estate map
Colorado Springs Partial BRRRR near E Bijou St and Chelton Rd.

Property Contract Details

  • Finding the property: Secret Sauce- I found this property off-market for this buyer
  • Under contract:  Acting fast (2 week close), buyer provided the seller with her wishlist offer and cash/quick close, it was a great match for both buyer’s wants and seller’s wants- everyone was very happy with the win-win!
  • Inspection Concerns/Negotiation Outcome:
    • None – Buyer waived the right to object but did not waive inspection termination

Property Financing Details

  • Lender: Cash
  • Loan Type: N/A- Buyer is exploring cash out refinance options to be able to repeat this process on future properties
  • Appraisal: N/A
  • Seller Concessions: $1,000- there were a few items of confusion on appliance inclusions upon initial contract and after discovering the tenant owned some.
  • PMI: N/A
  • Interest Rate Buy Down?: N/A

Conclusion

  • Buy: Purchased for $211,000 and ~$2,000 in closing costs, cash purchase
  • Renovate: Estimated rehab of $25,000, All In: $238,000
  • Rent: Currently rented at $1050/mo.  Current Market Rate Rent at $1450/month. Great tenant residing in the property that Buyer plans to work with to keep him there.
  • Refinance:  Estimated ARV at $265,000, New Loan estimated at $199,000 (75%) (not including closing costs)
  • Total cash in home: $39,000 (14.7% of appraised home value) with 25% equity in the home.
  • Compared to putting down $53,000 (20%) OR $66,250 (25%) or to purchase a fully renovated home at $265,000.  Additionally, the ARV could be upwards of $275,000 depending on level of upgrades.
  • Repeat!

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

YouTube Video: Rental Property Analysis – Colorado Springs Partial BRRRR

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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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