New Build Pueblo Fourplex with Amazing Returns
We’re continuing to highlight properties in Pueblo to give investors a better idea of what this market looks like and how it performs. Today, we’re doing a deal analysis on a new build fourplex in a developing part of town. Even though Leah and I ran the numbers as conservatively as possible, we still had to pick our jaws off the ground when we saw the returns. Listen to the episode to hear all of the details and you’ll be as excited as we are!

Today, Leah and I are looking at a townhouse-style fourplex in Pueblo.  A lot of investors ask us what multi family properties in Pueblo look like, so Leah and I are walking through a great option.  This is a property we found on the MLS, not one purchased by a client, but it’s a great example of the opportunity in this area.

Three Learning Options!
  1. Listen to the podcast “#71: New Build Pueblo Fourplex with Amazing Returns” on the Colorado Springs 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.

Investment Property Details

This is a fourplex that features 2 bed/1 bath side-by-side units.  It is a new build property and each unit has its own A/C, a big plus in this area.

The property is located in the northwest area of town, which has a lot going on development-wise. Tenants will enjoy being close to city parks and hiking trails. 

Property Pricing

The property is listed at $600K.  We’ve recently seen a few new build townhome-style products in the Springs that are well over $1M, so this is a steal in comparison.

We plan on checking in with this builder to see if they have plans to build any more of this type of property.

Property Financing Details

I used the Rental Property Spreadsheet to run the numbers on this deal.

Property Overview

Pueblo Fourplex Analysis - Property Overview Spreadsheet Screenshot

Looking at nearby comps, monthly rents of $1350 is the most conservative estimate for this property.  One fourplex built in the same style has $1200 rents, but that property is much older and a lot more dated.  While we ran the rents at $1450 in this analysis, it’s possible they could go as high as $1500.

As we’ve done with other properties in Pueblo, we estimate vacancy a little higher in this area.  In this case, we ran it at 6%. 

Monthly Operating Expenses

Pueblo Fourplex Analysis - Monthly Operating Expenses Spreadsheet Screenshot

The building is already separately metered for gas and electric.  We recommend that clients who are the first owners of a property institute a utility bill back on top of rent. This is much easier to implement from the start and gives the owner an additional income stream. 

First Year Returns

Pueblo Fourplex Analysis - First Year Returns Spreadsheet Screenshot

Even though we ran the numbers as conservatively as possible, the results are still phenomenal.  At rents of $1350 and no utility bill back, the annual cashflow is $12K a year and the cap rate is 6.4%.  Generally, we would expect to see stronger numbers in older buildings, but this brand new one is reflecting some great return projections.

If we play around with the numbers a bit and include a utility bill back and bump rent to $1450, the cashflow increases to $15,600 a year and the cap rate jumps to 7%.  We usually tell clients it’s impossible to see these kinds of returns, but the Pueblo market is strong. 

Since this is a new build, we have confidence in these numbers.  People love being the first to live in a property. 

Conclusion

This and other properties we’ve featured show that the opportunities in Pueblo are exciting.  Keep in mind, though, that Pueblo won’t be like this forever.  Now is a great time to get involved and take advantage of this growing market.

Connect with Us

If you want to learn more about available properties in Pueblo, reach out to Leah.  She is very knowledgeable about the area and has a great track record there. Her email address is Leah@EnvisionREA.com.

YouTube Video

New Build Pueblo Fourplex with Amazing Returns

Analyze Before You Buy
Start Evaluating Properties Today with Our Free Toolkit
In a rapidly changing market, having the tools you need to help you analyze the data is critical. Know what the numbers will look like ahead of time so you don't buy a bad deal. Our toolkit is designed to help you thoroughly analyze any kind of deal so you can invest with confidence.
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Jenny Bayless
Jenny Bayless is an investor-friendly agent with Envision Advisors, Colorado real estate investor, and the host of the Colorado Springs Real Estate Investing podcast.
Similar Post You Might Also Like
Colorado Springs
Can You Boost Cash Flow by Mixing Rental Strategies?
Residential multifamily investors aren’t locked in to just one rental strategy. In Colorado Springs, investors Greg and Heather are combining
Deal Analysis - Denver
How This Investor Still Lives for Free
Jeff White joins us to analyze his 7th house hack—just one away from his ultimate goal of owning 8 properties!
Sign Up For Our Newsletter
What do you want to learn today?