Deal Analysis – First Rental Property in Colorado Springs
This deal analysis breaks down how a young couple in Colorado Springs made their first real estate purchase to start building their rental portfolio for retirement planning. We are estimating $1,497 a year in cash flow after accounting for the mortgage, insurance, taxes, vacancy, HOA, and putting money aside for repairs and reserves. Listen to the podcast to find out how this was calculated.

This property closed Q4 – 2020.

Investor Profile

  • Young couple
  • First-ever property purchased

Three Learning Options!
  1. Listen to the podcast “#10: Deal Analysis – First Rental in Colorado Springs” 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
68% of the rental properties we buy are found on the MLS

Investment Property Details

  • Type: Townhouse
  • 2 bedroom, 2.5 bathroom
  • Location: Airport and US-24
  • List Price: $185,000
  • Purchase Price: $190,000
  • Why we liked it:
    • Proximity to major arteries and military bases
    • End unit
    • Move in Ready
    • New Appliances
    • New Paint
Colorado Springs real estate map
First Rental in Colorado Springs near Airport Rd and S Murray Blvd

Property Contract Details

  • Finding the property: Buyers had submitted very strong offers on similar properties previously but had lost out to cash buyers.  This one was under contract with a different buyer, but it came back available so we acted quickly.  We were not the highest offer, but the seller liked the buyers’ lending.
  • Under contract:  Above ask and secret sauce
  • Inspection Concerns:
    • None
  • Inspection negotiation outcome:
    • None

Property Financing Details

  • Lender: Conventional
  • Loan Type: 15% down conventional
  • Appraisal: at value, no issues.
  • Seller Concessions: 0
  • PMI: Monthly
  • Interest Rate Buy Down?: Yes

Spreadsheet Rental Analysis

Deal Analysis spreadsheet first rental property in Colorado Springs
Deal Analysis spreadsheet first rental property in Colorado Springs

Property Operating Expenses

Property Operating Expenses analysis spreadsheet first rental property in Colorado Springs

First Year Returns

First year returns spreadsheet

Conclusion

We are estimating $1,497 a year in cash flow after accounting for the mortgage, insurance, taxes, vacancy, HOA, and putting money aside for repairs and reserves.  The landlords are managing themselves, and they got a well-qualified tenant in the property very quickly (barely any vacancy).  Not bad for only putting 15% down!

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 – First Rental Property in Colorado Springs

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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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