Deal Analysis – Colorado Springs Turnkey Single Family Home

This deal analysis is for a turnkey single family home in the Northeast part of town.

This property closed Q1 – 2021.

Investor Profile

• Owns multiple rental properties, and has owned them for several years.
• Sold out of state rentals and is bringing his equity to Colorado, did a 1031 exchange.

Deal Quadrant: MLS

Investment Property Details

• Type: Single Family Home, 4 bed, 3 bath, 2 car garage
• Location: off Dublin and Marksheffel, near Stetson Hills
• Initial Offer Price: $385,000
• Purchase Price: $385,000
• Why we liked it:
  • Turnkey
  • Built in 2017, tenants were solid and had a lease signed through end of 2022 (no vacancy)

Property Contract Details

• Finding the property: MLS
• Under contract:  Buyer acted quickly and strongly, secret sauce.
• Inspection Concerns/Negotiation Outcome:
  • None

Property Financing Details

• Lender: CornerStone Home Lending
• Loan Type: Conventional
• Appraisal: At Value
• Seller Concessions: N/A
• PMI: N/A
• Interest Rate Buy Down?: Yes $3,600 for 1.125%, to 3.5%

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

The client was able to exchange an out of state property that consistently gave him headaches such as evictions and things breaking down and was able to utilize the gain he realized on the value of that property and 1031 exchanged it into a 3 year old, tenanted (with highly qualified tenants) property in a growing section of town.  He was able to do this with not much out of pocket (used the full gain) to procure this property, and now he has a cash flowing, stable asset.  I would make that trade any day!

For more Colorado Springs Deal Analyses including house hacks and multi family properties, check out our Colorado Springs Deal Analyses page.