Deal Analyses of Denver Investment Properties

This is a great up/down duplex near West Colfax in Lakewood. It's in a quiet neighborhood in an up-and-coming area with strong rental potential. This older property has good upside with sweat equity potential and plenty of parking. Listen to the podcast to hear the full deal analysis for this Denver rental property.

This Deal Analysis highlights The VareCo’s ability to execute a unique value-add opportunity in an A+ location in Denver, CO. This deal consists of a 23 unit property, a duplex, and a vacant lot. Throughout the entirety of the project, The VareCo saw the project through to completion, despite unexpected bumps along the way.

This deal analysis looks at an awesome 6 Unit in Aurora that caught our eye as it had been on the market for a while. After talking with the agent and walking the property, we saw a lot of potential in this one. The units were in good shape but hadn't been updated for 8 years ago. With some sprucing up, this multi family will have some upside in rents.

Our client for this 11 unit apartment building purchase was an out of state, first time investor looking to get into the Denver market as he plans to relocate to Denver in the future and knows  Denver has a strong real estate market. We were able to find a great multi family property in Aurora that had some upside in rents with a little updating and better management. This deal was certainly unique as we navigated the majority of it remotely with our client during many of the COVID restrictions.

This post highlights The VareCo’s acquisition of a portfolio with unique complexities, stringent federal regulations, and creative opportunities. This portfolio consists of two multifamily complexes sold as a package-deal in two separate, high density, high-growth neighborhoods in Denver, CO.

Our client is a young working professional purchasing his first Denver investment property though the Nomading™ approach. He wanted his first purchase to provide a balance of investment and lifestyle. Location was one of the main focuses along with cash flow after moving out. The neighborhood will continue to appreciate.

Our client is a young working professional purchasing his second investment property through the house hacking approach. The client wanted his next purchase to provide a balance of investment and lifestyle. Location was one of the main focuses along with the ability to add value to the property to increase the rents by finishing out the basement into a separate unit. The neighborhood will continue to appreciate and the property is zoned and large enough to add an additional dwelling unit (ADU).

This post with Terrance Doyle and Ben Davis of The VareCo covers how The VareCo sourced a 25 unit portfolio, got it under contract, underwrote, raised capital and their plan for repositioning the properties. The property portfolio includes six all-brick structures. Five buildings are fourplexes, and one is a five-unit building in Wheat Ridge, CO. Each of the 25 units consists of 2 beds and 1 bath, with a total of 780 square feet per unit. 

This is a condo in one of our favorite investor complexes in Aurora. We originally put an offer in but lost out to a cash offer. It fell out of contract when the stock market tanked due to COVID. I am not sure if the buyer had his cash in the stock market, but regardless, it’s a good reminder to get your money out of anything volatile when looking to buy.

This is the fourth episode in our Deal Analysis series focusing on fix and flips with Derek Marlin of ELEVATION. This episode looks at a single family redevelopment in the north Denver suburb of Arvada that was purchased in November 2019 and rehabbed through Q1 2020.

Our investor client purchased a detached single family home in Westminster to Nomad™. He purchased the home with a 0% down VA loan which means he had to bring less than $10,000 total to the closing table to buy this property! This property works for the client now and makes for a great future rental property.

This is another episode in our Deal Analysis series focusing on fix and flips with Derek Marlin of ELEVATION. This episode looks at a recently completed half duplex in the West Highlands area of Denver that Derek found off-market.

A new investor purchased his first house hack in Westminster. He’s following the Nomad™ strategy to buy a new rental property every year. He may or may not rent out a few rooms while he’s living there. His focus is on building a rental portfolio and acquiring properties. This is a great property for a Nomad™ or house hack due to the location, price point and that it has 5 bedrooms. These are “solid base hits” that build wealth in the long run!

This is another episode in our Deal Analysis subseries called "Deal or No Deal?" with Derek Marlin of ELEVATION. In this episode, we analyze a Congress Park Condo that a Partnership client recently found on the MLS and brought to him. Is it a deal or no deal? Read on to find out!

This investment property is a house with an ADU in the Athmar Park neighborhood of Denver. Many single family homes in Denver are negative to tight cash flow at 20% down. Since this has an ADU, it has a strong cash flow over $500/mo! Athmar Park is one of the lowest price neighborhoods in Denver and is transitioning.

My guest for this episode is Derek Marlin who does fix and flips. This will be the first in a four-part series with Derek talking about deals he’s doing as well as deals he’s not doing. In this case, he chose NOT to do the deal. He ran the opportunity through his spreadsheet, and it did not pass the test. This is more common than not; he analyzes 8-10 properties for every one that passes the test.

This is a unique fourplex in a great part of town. It’s a mixed-use building with residential, commercial, and retail. It’s on South Broadway near I-25 with great walkability. The area is seeing great growth from new class A apartment buildings and lots of restaurants and retail stores. The light rail is walking distance. The plan is to take the cash flow now and ride the wave of change and appreciation!

This property is an updated fourplex fourplex in Longmont, CO. It is a great location, only a few blocks off Main Street. Our client wanted a fourplex in an up-and-coming area with strong rental demand and upside for appreciation and rent increases. Acquiring this property is a big step in helping our client reach his early retirement goal.

Our client was an out of state investor with a small apartment building in Los Angeles, CA. He wanted to sell and 1031 the money to Denver for a better cap rate and future retirement plans of moving out to Denver. He has family in Denver who acted as ”boots on the ground” and to help manage the asset. We coordinated with the California agent, 1031 Qualified Intermediary, and all parties to get the transaction completed per the 1031 rules. There is significant upside in rents by upgrading the building electrical system and installing in unit washer/dryers and AC ductless mini-split systems.

This property is an established 8 unit in a desirable part of town near Denver University. 6 of the 8 units were recently updated with mostly long-term tenants. A plus is brick construction with low maintenance. There's potential upside in turning two units, charging for parking and storage, bringing in better management, and bringing some units up to market rent. The long-term goal is to refinance into a non-recourse mortgage after updating units and rents are increased.

The investment property discussed in this Deal Analysis is a 9 unit apartment building in Aurora near the Anschutz medical complex. Originally it was a 6 unit,  but a previous owner converted it to a 9 unit which was approved by the city. The seller bought this one year before as an apartment flip. The previous owner was in over his head. There were major management and property issues. The current seller rehabbed eight out of the nine units, stabilized rents, and handled utility issues from the six to nine unit conversion.

Chris Lopez purchased this Westminster fourplex in a 1031 exchange from an out of state property. Chris and the seller worked together so they could have a closing time favorable to both parties. It was very much a “win-win” transaction. The property was attractive to Chris, because it was renovated which should keep maintenance and capital expenditures low for many years. Higher cap rates could have been achieved with four individual condos, but keeping it simple with one transaction to minimize potential 1031 issues was ideal.

Aurora condos are typically the best cash flowing investment properties in the current Denver metro real estate market. Our clients picked up their third rental property in Aurora. This is a great property because it’s fully remodeled and ready to go. Also, there is a relatively easy value-add play of turning a second living room into a fourth bedroom by adding a door and some drywall work. More bedrooms = more rental income.

Buying detached homes in Aurora near the Anschutz medical campus is one of the last areas around Denver to buy lower priced homes that cash flow. These properties make sense because of their low price point, high rental demand and potential for long term upside. Between opportunity zones and three major hospitals, this area has a lot going for it.

One bedroom condos are the lowest price point properties that you can find in Denver and Aurora. An investor can buy one for just over $30,000 out of pocket with a 25% down payment. You won’t find other rental properties that need so little down!

Usually, the properties we buy on the west side of town are for House Hackers and Nomaders™. Our investors wanted to buy an investment property that was near their home. Cash flow was not their main goal as they are buying this for retirement purposes. With Lakewood’s Proposition 200 passing in 2019 (which limited residential growth), there’s potential for solid appreciation.

This is an Aurora rental condo purchased by Chris Lopez. It’s a straightforward rental property that met his criteria and in a complex where we’ve done many transactions. Aurora investment properties are some of the best cash flowing rentals in the current Denver market.

Our clients wanted to buy a house in an area they could enjoy while living there and hopefully ride the wave of transitioning neighborhoods and therefore appreciation.

This analysis breaks down helping a first-time homebuyer and new investor to buy his first house hack. Our search focused on townhomes, since they have lower price points than detached homes. While he’s living there, the rent from two roommates ($850 each) more than covers his mortgage and HOA payments. He’s practically living for free! When he moves out after the one year mark, the numbers make sense as a rental property too. A solid win-win!

In this episode, I discuss a duplex house hack in Wheat Ridge, Colorado that closed in Q4 2019. In the current Denver market, we do not find many multi families that make sense for house hacking, but this one did! We found a duplex with a great layout that was sitting on the market, because it was overpriced.

There are two different deal analyses discussed in this episode. #1 Living at the house while Airbning the mother-in-law suite in Arvada, CO. #2 A long term rental analysis for after they move out.

This deal analysis breaks down how a family of four is using the Nomad™ real estate investing method to start building their rental portfolio for retirement planning.

This deal analysis discusses a room by room house hack in Aurora, CO. Our team helped the client successfully buy their first house hack and future rental property. While living there, our client will spend only about $300/mo in housing expenses. Once he moves out, he'll cash flow close to $5,000 a year by renting it room by room.

This episode is the second of three tutorials using the rental property analysis spreadsheet.

This tutorial discusses analyzing house hack and Nomad properties. You can download the spreadsheet and view the video tutorials here.

• 3 Bedroom
• 2 Bathroom
• Sold Price: $190,000

• 4 Bedroom
• 3 Bathroom
• Sold Price: $430,000

• 1 Bedroom
• 1 Bathroom
• Purchase price: $100,000

• 3 Bedrooms
• 2 Bathrooms
• Sold Price: $~362,000

• 4 Bedroom
• 3 Bathroom
• Sold Price: $382,000

• 5 Bedroom
• 3 Bathroom
• Sold Price: $441,000

• 5 Bedrooms
• 3 Bathrooms
• Sold Price: $375,000

• 4 Bedrooms
• 4 bathrooms
• List Price: $390,000
• Sold Price: $395,000