Deal Analysis – Colorado Springs Turnkey Townhome
This deal analysis looks at a new build, turnkey townhome rental property located in the Security-Widefield area of Colorado Springs that closed Q1 2021. The investor typically likes to BRRRR, but this was a good opportunity for an easy win since it was new build and turnkey. The expected performance was so good the agent decided to buy a unit for herself as well! Listen to the episode to hear how the expected returns were calculated.

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.

Three Learning Options!
  1. Listen to the podcast “#15: Deal Analysis – Colorado Springs Turnkey Townhome” 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: MLS

Real Estate Deal Analysis Quadrant

Investment Property Details

  • Type: Townhome
  • 3 bedroom, 2.5 bathroom, 2 car garage
  • Location: Bradley and Main
  • List Price: $248,900
  • Purchase Price: $248,900
  • Why we liked it:
    • Turnkey
    • Expect this area to remain strong in returns
    • The math worked well
Colorado Springs real estate map
Colorado Springs Turnkey Townhome near Bradley Rd and Main St.

Property Contract Details

  • Finding the property: MLS
  • Under contract:  Happened to catch the builder when they were opening new units for sale.  My clients wanted to see it, and they decided to buy a unit. Because I had worked out the math with them, I saw it was a great deal, so I bought the unit next door to theirs.
  • Inspection Concerns/Negotiation Outcome:
    • None – New build, with builder’s warranty

Property Financing Details

  • Lender: CornerStone Home Lending
  • Loan Type: Conventional
  • Appraisal: At Value
  • Seller Concessions: None
  • PMI: N/A
  • Interest Rate Buy Down?: Yes $2100 for 1.125%, to 3.125%

Spreadsheet Rental Analysis

Deal Analysis spreadsheet turnkey townhome

Property Operating Expenses

Property Operating Expenses analysis spreadsheet turnkey townhome

First Year Returns

First year returns analysis spreadsheet turnkey townhome

Conclusion

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 on those properties.  As a result, we wanted to redeploy the cash out proceeds into additional rental property. 

This one was very easy since it was a new build, turnkey property, and the expected performance was quite good!  I was able to not use any of our own cash and procure a cash flowing rental property that is brand new (expecting pretty low maintenance for a few years) in an area that is experiencing very good growth!  The next set of units for sale were already almost $20,000 more than what we bought this for – – instant equity!

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 Turnkey Townhome

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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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