Denver Fourplex That Creates $3K Monthly Cashflow: A House Hack Case Study
Is it still possible to house hack in Denver’s competitive market? Chris Lopez, Troy Howell of Nova Home Loans, and house hacking specialist Jeff White say yes. They recently broke down how one investor turned $40,000 into both free housing and $3,000 monthly cashflow using a fourplex strategy. Here’s how they did it.
The Deal Structure
- Purchase price: $690,000
- Down payment: 5% ($34,500)
- Total cash needed: Under $40,000
- Seller credit: $25,000 for closing costs and repairs
The property, a brick fourplex near City Park, includes three one-bedroom units and one studio. Originally listed at $900,000, an inherited estate situation led to a dramatic price drop to $635,000. Jeff White, who helped find and analyze the deal, notes that daily market monitoring was key to catching this opportunity when the price dropped by $200,000 in a single day.
Making The Numbers Work
While living in the property:
- Total rental income: $4,500/month
- Monthly expenses: $3,540
- Owner’s housing cost: $960/month
After moving out and optimizing all units:
- Total rental income: $8,408/month
- Monthly cashflow after expenses: Nearly $3,000
The Section 8 Strategy
Troy Howell points out that current Denver Section 8 rates offer $2,147 for one-bedroom units—significantly above market rates. This approach provides guaranteed, recession-resistant income while only requiring a few extra hours of paperwork. Rather than rushing to fill vacancies with market-rate tenants, the owner lives in the smallest unit while gradually converting the other units to Section 8 as leases expire.
Smart Management Decisions
The property came with inherited tenants paying below-market rents, providing immediate cash flow while allowing for gradual optimization. Jeff White emphasizes the importance of professional screening standards and setting clear expectations with existing tenants. The Section 8 program provides additional security by covering 100% of rent if tenants lose income.
Keys to Success:
- Daily market monitoring to find the right deal
- Professional tenant screening process
- Understanding Section 8 requirements
- Patience with inherited tenants
The Power of House Hacking
This Denver fourplex demonstrates how house hacking can accelerate wealth building through multiple channels. Chris Lopez highlights that while living nearly free, the owner builds equity through property appreciation and positions themselves for significant future cashflow. The combination of house hacking, Section 8 rentals, and low down payment financing made this possible even in today’s challenging market.
Looking Forward
This case study proves that with creativity and patience, investors can still find Denver properties that generate substantial monthly cashflow while building long-term wealth. Want to learn how you could replicate this success? Join Troy, and Jeff at their monthly Denver house hacking meetups where they analyze deals like this and connect with other local investors. Your path to generating $3,000 in monthly cashflow might be closer than you think.
Timestamps
(02:04) Case Study Overview: The Denver Fourplex
(12:37) Challenges and Solutions in House Hacking
(26:05) Understanding Loan Structures and PMI
(29:32) How to Maximize Rental Income
(40:50) Pros and Cons: Inherited and Section 8 Tenants
Links from Podcast
Nova Home Loans: https://troyhowell.novahomeloans.com
Email Troy Howell: [email protected]
- LinkedIn: Troy Howell
Email Jeff White: [email protected]
- LinkedIn: Jeff White
Who is Nova Home Loans?
For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today!
NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO
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