Deal Analysis – Nomad™ Denver Townhouse

Our client is a young working professional purchasing his first Denver investment property though the Nomading™ approach. He wanted his first purchase to provide a balance of investment and lifestyle. Location was one of the main focuses along with cash flow after moving out. The neighborhood will continue to appreciate.

Our client is a young working professional purchasing his first Denver investment property though the Nomading™ approach. He wanted his first purchase to provide a balance of investment and lifestyle. Location was one of the main focuses along with cash flow after moving out. The neighborhood will continue to appreciate.

This property closed Q3 2020.

Investor Profile

  • Single young working professional
  • Wanted to start building a rental property retirement portfolio
  • Nomading™ approach
  • Wanted to live in an area that provided personal enjoyment, little to no maintenance, and cash flow

Three Learning Options!
  1. Listen to the podcast “#222: Deal Analysis – Nomad™ Denver Townhouse” 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 rental properties in Denver.

Investment Property Details

  • Type: Townhouse
  • 2 bedroom, 3 bathroom
  • Location: Jefferson Park
  • List Price: $645,000
  • Purchase Price: $640,000
  • Why we liked it:
    • Amazing location
    • Brand new build, low maintenance
    • Across from Jefferson park, walk to bars and restaurants
    • Roof top, mountain and city views
    • Cash flow positive
Denver real estate map
Nomad™ Denver Townhouse near Federal Blvd and @ 23rd Ave.

Property Contract Details

  • Finding the property: New build on the MLS
  • Under contract:  Below and secret sauce
  • Inspection Concerns:
    • Cosmetic issues – touch up paint, kitchen cabinets not hung level, doors didn’t stay open.
  • Inspection negotiation outcome:
    • Builder corrected all punch list items

Property Financing Details

  • Lender: VA
  • Loan Type: 3.5% down VA
  • Appraisal: at value, no issues.
  • Seller Concessions: 0
  • PMI: N/A
  • 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 Operating Expenses analysis spreadsheet

Conclusion

The spreadsheet shows a positive cash flow of $3778 once he moves out after year one with a 5/35 cap rate. The analysis doesn’t include a property management fee as he is willing to self manage, while accounting for a 5% vacancy rate and 5% repairs and reserves sine it is a townhome and a brand-new build.

Read more about the Nomad strategy and how it works by viewing these case studies on Nomad properties.

YouTube Video: Nomad™ Denver Townhouse

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Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Lauren Valinoti
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