Deal Analysis – Duplex House Hack in Lakewood

This is a great up/down duplex near West Colfax in Lakewood. It’s in a quiet neighborhood in an up-and-coming area with strong rental potential. This older property has good upside with sweat equity potential and plenty of parking. Listen to the podcast to hear the full deal analysis for this Denver rental property.

This property closed Q3 – 2020.

Investor Profile

  • First time buyers
  • Moved to Denver a few years ago and looking to start building real estate portfolio through house hacking

Three Learning Options!
  1. Listen to the podcast “#244: Deal Analysis – Duplex House Hack in Lakewood” 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.

Deal Quadrant: MLS

Real Estate Deal Analysis Quadrant
68% of the rental properties we buy are found on the MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details

  • Type: Duplex
  • 2 bedroom, 1 bathroom in each unit
  • Location: Lakewood & West Colfax
  • List Price: $435,000
  • Purchase Price: $435,000
  • Why we liked it:
    • Great Location, west side of town
    • Upside of sweat equity
    • Layout of unit very open
denver real estate map
Duplex House Hack in Lakewood near W 10th Ave and Garrison

Property Contract Details

  • Finding the property: Found on the MLS
  • Under contract:  At list price even with multiple offers because of agent relationship and strong offer (Secret Sauce)
  • Inspection Concerns:
    • Sewer line root issues
    • Ungrounded electrical
    • Other minor items
  • Inspection negotiation outcome:
    • Seller cleared sewer lines
    • Seller provided concession for other items

Property Financing Details

  • Lender: FHA
  • Loan Type: 30 year FHA
  • Appraisal: Above.
  • Seller Concessions: $3,500
  • PMI: Monthly
  • Interest Rate Buy Down?: No

Spreadsheet Rental Analysis

Deal Analysis spreadsheet
Deal Analysis spreadsheet
Deal Analysis spreadsheet

Property Operating Expenses

Property Operating Expenses analysis spreadsheet

First Year Returns

Property First Year Returns analysis spreadsheet

Conclusion

Finding a duplex on the west side of town at this price point was awesome! The clients were willing to put some work in and wanting to have a real duplex for their first property.

To see more house hack deal analyses like this one, check out our other house hack Deal Analyses.

YouTube Video: Rental Property Analysis – Duplex House Hack in Lakewood

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Authors
Preston Newberry
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