Deal Analysis – House Hack in Denver for Under $200K
Our client in this Deal Analysis was looking to start a rental portfolio and wanted to take advantage of the house hack strategy. He wanted a place under $200k to start, preferably in the Denver metro area. Check out this episode to find out how he used the Colorado Fair Housing Act (CHFA) Down Payment Assistance (DPA) program to realize his dream of home ownership in Denver. This deal shows it’s possible to get into the Denver market without a lot of cash.

He applied for the Colorado Fair Housing Act (CHFA) Down Payment Assistance (DPA) program to realize his dream of home ownership in Denver. Keep reading for details on this program and links to find out more.

This property closed Q4 – 2020.

Investor Profile

  • First time buyer
  • Wanting to try the house hack/Nomad™ method
  • Looking for property under $200k to start his rental portfolio

Three Learning Options!
  1. Listen to the podcast “#262: Deal Analysis – House Hack in Denver for Under $200K” 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
The majority of Nomad™ and House Hacks are found on the MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details

  • Type: Condo
  • 2 bedroom, 1 bathroom
  • Location: East Denver/Virginia Vale
  • List Price: $169,000
  • Purchase Price: $169,000
  • Why we liked it:
    • Good area
    • Has great rental potential once client moves out
    • Good HOA
Denver real estate map
Denver Condo House Hack with Down Payment Assistance near S Monaco Pkwy and E Tennessee Ave

Property Contract Details

  • Finding the property: We looked at similar condo units at this price point across the metro. Our team knows this complex well and our buyer felt that this unit had the best location and layout for the price.
  • Under contract:  At list price
  • Inspection Concerns:
    • Able to receive the inspection report from when the property was under contract prior to us
    • Re-examined HVAC to determine if any issues = None
  • Inspection negotiation outcome:
    • None

Property Financing Details

Spreadsheet Rental Analysis

Deal Analysis spreadsheet Denver condo house hack
Deal Analysis spreadsheet Denver condo house hack
Deal Analysis spreadsheet Denver condo house hack

Property Operating Expenses

Property Operating Expenses analysis spreadsheet Denver condo house hack

First Year Returns

First year returns analysis spreadsheet

Conclusion

This condo house hack was a very good deal that fit our client’s needs and wants.  Our client will likely add washer/dryer hook ups and machines for about $2,500 before he moves out to achieve the highest rental rates to rent room by room.

While living there, he will be renting the other room and only paying about $500 a month to live, cutting his monthly payment in half. He will save the other half to pay back the Down Payment Assistance, so he can convert the unit to a rental in 18 months when he buys his next place.

This deal shows that it is possible to get into this market without a lot of cash!

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

Colorado Fair Housing Act Down Payment Assistance Program

For more information on the Colorado Fair Housing Act (CHFA) Down Payment Assistance (DPA) and to find a list of approved lenders, visit the Colorado Fair Housing Act website.

You can also view a video showing how to get a CFHA loan.

YouTube Video: Deal Analysis – Denver House Hack for Under $200k

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Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Stacy Rozansky
Stacy Rozansky is an investor-friendly agent with Envision Advisors with experience in ground-up development and construction of Accessory Dwelling Units in Denver and the metro area.
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