He came to us with only 3 weeks left on his 1031 exchange identification period and wasn’t able to visit Denver for the purchase. We found him a duplex on the Denver/Westminster border, and he closed with two tenants already in place.

This property closed Q3 – 2020.

Investor Profile

• Seasoned Buy/Hold Investor
• Lives overseas and needed help, because he couldn’t visit Denver due to COVID
• Has been investing in Denver for 6+ years
• Looking for multi family
• Wanted a 6%+ CAP rate

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Rental Properties.

Investment Property Details

• Type: Duplex
• 3 bedrooms, 2 bathrooms in each unit
• Location: Berkley North by Hidden Lake
• List Price: $589,000
• Purchase Price: $570.000
• Why we liked it:
  • On the market for 61 days
  • Renters already in place with 10 months left on lease
  • West of I25

Property Contract Details

• Finding the property: Buyer was on a tight timeline with his 1031 exchange identification period expiring soon. We found this deal on the MLS.
• Under contract:  Under ask
• Inspection Concerns:
  • Issues with a deck that needed fixing
  • There were some structural concurs
• Inspection negotiation outcome:
  • Deck issues negotiated into concessions
  • Structural engineer was brought in to certify the structure

Property Financing Details

• Lender: Conventional
• Loan Type: 15 year ARM
• Appraisal: at value, no issues
• Seller Concessions: $5,610
• PMI: N/A
• Interest Rate Buy Down?: No

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

Given our short timeline, we were pleased to find a deal that was a great fit. If we had not been able to deliver this for our client, there would have been a tax liability on the 1031 exchange.

Check out our 1031 Exchange Denver Guide to learn about 1031 Exchanges in Denver.

YouTube Video: Rental Property Analysis – Wheat Ridge 1031 Exchange Duplex

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