Deal Analysis - First Rental Property in Colorado Springs

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•December 30, 2020

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!

Listen to the podcast “#10: Deal Analysis – First Rental in Colorado Springs” on the Colorado Springs Real Estate Investing Podcast
Watch the YouTube video (at the bottom.)
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

Property Operating Expenses

First Year Returns

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

Podcast (colorado-springs-real-estate-investing-podcast): Play in new window | Download | Embed

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