Webinar #19: April Roundup – Multi-Family Deal Analysis

Charles and I just wrapped up the April roundup webinar (our monthly “let’s grab a virtual cup of coffee and talk Denver real estate investing.”) You can watch the YouTube recording below or listen to it on our podcast channel (“Episode #31 March Roundup – New Expectations?”).

Denver Monthy Market Snapshot

Commentary: The number of listings and solds are down. Price is up!

Investing Indicator

We come across lots of interesting and data throughout the month. The “Investing Indicator” is where we pick one and discuss it.

Source: Wall Street Journal

Commentary: The graph shows housing starts across the entire U.S. This graph shows the big picture and really drives home the huge shortage of inventory. While Denver housing starts have picked up recently, compare it to has happened historically. Inventory has a long way to catch up!

Deal #1: Duplex in Aurora

This duplex is the normal, brick duplex in Aurora. It’s a 3/1 and 3/2. Each unit is around 900 sq ft. The seller is a professional investor who couldn’t believe what neighboring duplexes were selling for. He wanted to cash in.

  • Property is in good shape, but rents are under market ($1,100 and $1,500.)
  • Market rent is $1,600 to $1,700.
  • It’s a 5.5 cap at current rents
  • At market rents ($1,650), it’s a 7.3 cap!

Download the MLS data sheet here.

Download the spreadsheet analysis here.

Deal #4: Fourplex Listing in Denver

This is the first time that we’ve discussed a listing on our monthly roundups! It’s an interesting case study on the Denver market. Charles helped the client buy it in June 2014. Now he’s helping him sell it. 5/4 – Property is under contract!

  • It’s two duplexes = fourplex
  • All units are 3/1’s at ~600 sqft.
  • Purchased for $365,000 in June 2014. Rents were about $700.
  • Put in about $110,000 additional work (ran into lead based paint.)
  • 2018 average rental income is $1,231 per unit.
  • Comparable properties are selling at a 6.3 cap.

Download the MLS data sheet here (with operating data.)

Download the spreadsheet analysis here.

YouTube Recording

Questions? Help?

Creating your real estate investing plan and putting together your team can be a daunting task. That’s why we offer a free investment consultation to anyone – with no obligation or “hard close” at the end.

Our approach is simple – just have a conversation where we can ask you questions to get a solid understanding of what you want to accomplish with investing in real estate. Then, we’ll start helping you put together your investing plan.

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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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