Worried that high interest rates mean that real estate isn’t a good investment right now? Check out this Pueblo duplex that’s bringing in some of the strongest returns we’ve ever seen on a long term rental–even with a 7% interest rate!
- Listen to the podcast “#127: How Is This Investor Cash Flowing $7K Annually with a 7% Interest Rate? Colorado Springs Real Estate Investing Podcast
- Listen to the full episode (at the bottom)
- Watch the episode on YouTube
Investor friendly agent Leah Keeling is about to help her client close on this duplex. It’s located just outside the Mesa Junction neighborhood, a great area full of large Victorian homes. The 1990s duplex gives the client the best of both worlds: the beauty of a historic area without the problems that come with a historic home. They came in strong with a $255K offer, $5K over list price, and got the property.
The client is getting three sources of income by renting out the two units plus the detached garage. Despite hiring a property manager and having a 7.125% interest rate, he’s still cash flowing $7K annually and has an 8.2% cap rate!
This is one of the best performing long term rentals we’ve come across in a long time. Usually to see numbers like these, clients are using more time consuming medium term rental or rent by room strategies. Don’t let today’s interest rates deter you: this property shows that with the right deal, you can still get strong returns.
In This Episode We Cover
- Why this Pueblo duplex was such a steal! It’s a 3 bed/1 bath unit and a 2 bed/1 bath unit both with attached garage space. Plus, there’s a detached garage with brand new electrical panel that he’ll rent out as a workshop or storage space.
- How this Denver-based client’s motivation, market research, and attention to detail helped him find the property 1 minute after it was listed
- How Leah was able to get information from the listing agent and current tenants to figure out what they needed to offer to land the deal
- Why it was worth paying $20K in initial repair costs, including replacing a poorly built staircase and deck
- Our excitement to see such strong numbers on a long term rental
Links from the Episode
- Rental Property Spreadsheet
- About Envision Advisors
- Envision Advisors Facebook
- Envision Advisors Instagram
Help Us Out!
We want to know what you want to hear! What struggles are you having in your real estate investing journey? Anything have you stumped? What will help you level up your investing game?
We want to know!
Please send an email to [email protected] to submit your answers!
Check out the podcast below!
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