Webinar #7: Denver Multi-Unit Deal Analysis

This webinar continues our deep dive into Denver multi-unit properties. One of the best ways to learn if multi-unit investing is right for you is by analyzing deals! Our previous webinar discusses the trends for multi-unit income properties around Denver.

The two main topics are:

  1. Analyzing active multi-unit deals around Denver
  2. Comparing multi-unit vs single family investing

Denver Multi-Unit Deal Analysis Recording



Enjoying this webinar? Then you’ll want to check out past recordings and upcoming webinars.

Denver Multi-Unit Deal Analysis Q&A

We love interactive webinars with lots of questions. This webinar did not disappoint! Here are some of the questions asked:

  • Does that estimated 6% Cap include vacancy? With 9 units, there will probably always be some vacancy, right?
  • What is the lowest cap rate you consider a “good deal” to have?
  • With a condo, a lot of big ticket items are covered in the HOA. It seems like, with the multi-units, you as the owner are the HOA. How concerned do you have to be with estimating capital improvements, like a roof, new heaters, new water heaters?
  • On larger properties, you can do a reserve analysis done by experts to tell you how much you should have in reserve.
  • How difficult is it to manage a 10 unit property? I would imagine there are a lot of phone calls that come with it?
  • Cap rate — does it take into consideration the loan carrying costs? So it heavily depends on what you put down?
  • What kind of loan do you need for a multi unit / commercial property? Is there any difference between the loan you would get for a condo?
  • Can you do FHA for 4+ unit?
  • Can you 1031 exchange a SFH for say a 9 unit apartment building? Is that considered a “like” property if it is a commercial deal?
  • So it looks like in a lot of the examples that we have seen, investors have bought the multi units to fix them up, increase rents and flip them. Are they purchasing them more for the appreciation than the long term buy and hold cash flow? Or maybe the appreciation that the market generated made it worth while to sell now rather than hold.
  • I’m currently looking for a multi-unit (4 or less so I can acquire conventional financing). I see that multi-units don’t necessarily have higher cap-rates, but by virtue of being a multi-unit they cashflow more or have the potential to. Do you have an example showing evidence of your opinion that single family residence can cashflow more with the same amount of money invested?
  • Earlier you mentioned that loans are different for commercial properties than residential. Is the % of required down payment also larger? Or is there a recommended % of down payment to get the best interest rate?

Is Multi-Unit Investing Right For You?

There is no one-size fits all investing strategy. Charles and I not here to tell you to invest in condos or single families or multi-units. Real estate investing is 50% science and 50% art. We’re more than happy to discuss the market and explore various options to help you create an investing strategy.

Reach out to us to set up your real estate investing consultation so we can grab some coffee and talk real estate!

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
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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