Deal or No Deal? Arvada Single Family Redevelopment

This is the fourth episode in our Deal Analysis series focusing on fix and flips with Derek Marlin of ELEVATION. This episode looks at a single family redevelopment in the north Denver suburb of Arvada that was purchased in November 2019 and rehabbed through Q1 2020.

This is the fourth episode in our Deal Analysis series focusing on fix and flips with Derek Marlin of ELEVATION. This episode looks at a single family redevelopment in the north Denver suburb of Arvada that was purchased in November 2019 and rehabbed through Q1 2020.

Derek was able to work with the property owner to find a solution that worked for everyone which included a 14 day close and 3 week rent back through Thanksgiving with no rent due for the seller. Flexibility and willingness to find creative solutions has proven an effective strategy for Derek to secure flip properties.

Converting this 4 bedroom / 2 bath (no true master) into a 3 bedroom / 3 bath with a true master suite made it a more desirable property.

Listen to the podcast or watch the video for the the full discussion.

Three Learning Options!
  1. Listen to the podcast “#187: Deal or No Deal? Arvada Single Family Redevelopment” 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.

Flip Deal Background

  • Sourcing: MLS property listed in mid November, asking price after property was back on the market.
  • Why we got the deal:. Cash offer after back on the market, full asking price, 3 week rent back through Thanksgiving, roll off pre-move out, we close- research our company.
  • Investment Asset: Single family home in Arvada which is North Denver suburb.
  • Property Overview:  Was a 4 bed, 2 bath with non-confirming bedroom in basement. We converted a smaller upstairs bathroom to a large master suite, added an egress window to the basement bedroom for a 3 bed, 3 bath layout. One car attached garage.
  • Pricing: $375,000 cash MLS deal where we paid the closing costs. Q4 2019 to Q1 2020
  • Inspection Process: In-house inspection with my PM and GC, no structural engineer needed. ***No sewer scope done.
  • Financing: Cash purchase, 14 day close, 3 week rent back- No rent, deposit held

Estimated Flip Analysis

before flip photo
Before
  • KEY STATS
    • $367,500 cash purchase
    • $59,600 rehab
    • $515,000 ARV
  • Rehab scope of work (SOW)
    • Full home rehab
    • Changed to 3/3
    • Roof only main system
    • Kept cabinets, counter tops
    • 90 Day project (60 day rehab)
  • ARV Determination
    • 10-12 solid comps
    • Low inventory
    • Not many true “Flips”
  • Projected Profit:
    • $50,371
    • Standard/”Good” project
Flipping analysis spreadsheet

Actual Flip Analysis

  • KEY STATS
    • $367,500 cash purchase
    • $88,900 rehab
    • $515,000 Listing, $525k ARV
  • Rehab scope of work (SOW)
    • Full home rehab, most systems
    • Changed to 3/3
    • Sewer line, ceiling, e-panel, tile
    • Kept cabinets, counter tops
    • 110 Day project (U/C twice)
  • ARV Determination
    • No inventory
    • 46 showings
    • 16 offers, 10 way above asking
    • $555k U/C, cold feet
  • Projected Profit:
    • $52,207
    • Lucky for run up
    • Sewer replacement last minute
Flipping analysis spreadsheet

Download Free Flip Spreadsheets

Download Derek’s free Denver fix and flip spreadsheets including:

  • Fix and Flip Deal Analyzer 3.0 to help you quickly analyze potential fix and flip properties in Denver.
  • Rehab Pricing Estimator to help estimate rehab costs when you walk the property.

Outcome: Deal!

Based on the spreadsheet analysis, this one was a deal!

Before Photos

before flip photo
before flip photo
before flip photo

After Photos

after flip photo
after flip photo
after flip photo
after flip photo

Additional Flip Deal Analyses

Read more flip deal analysis case studies about a condo in Congress Park or a Half Duplex in West Highlands. Or search all our deal analyses where you can filter them to view the types you want to see.

Connect With Derek

If you have a property you would like to run by Derek for a partnership flip or if you would like to schedule a flip consultation, reach out.

YouTube Video: Flip Deal Analysis – Arvada Single Family Redevelopment

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Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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