This deal analysis is for a new build, turnkey townhome rental property located in the Security-Widefield area of Colorado Springs.
This property closed Q1 – 2021.
- Owns multiple rental properties and has owned them for several years
- Typically likes to BRRRR, but this was a good opportunity for an easy win.
- Listen to the podcast “#15: Deal Analysis – Colorado Springs Turnkey Townhome” on the Colorado Springs Real Estate Investing Podcast
- Watch the YouTube video (at the bottom.)
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Deal Quadrant: MLS
Investment Property Details
- Type: Townhome
- 3 bedroom, 2.5 bathroom, 2 car garage
- Location: Bradley and Main
- List Price: $248,900
- Purchase Price: $248,900
- Why we liked it:
- Expect this area to remain strong in returns
- The math worked well
Property Contract Details
- Finding the property: MLS
- Under contract: Happened to catch the builder when they were opening new units for sale. My clients wanted to see it, and they decided to buy a unit. Because I had worked out the math with them, I saw it was a great deal, so I bought the unit next door to theirs.
- Inspection Concerns/Negotiation Outcome:
- None – New build, with builder’s warranty
Property Financing Details
- Lender: CornerStone Home Lending
- Loan Type: Conventional
- Appraisal: At Value
- Seller Concessions: None
- PMI: N/A
- Interest Rate Buy Down?: Yes $2100 for 1.125%, to 3.125%
Spreadsheet Rental Analysis
Property Operating Expenses
First Year Returns
I used the proceeds from a cash out refinance on rental properties that we had bought a few years ago to take advantage of the significantly low interest rates on those properties. As a result, we wanted to redeploy the cash out proceeds into additional rental property.
This one was very easy since it was a new build, turnkey property, and the expected performance was quite good! I was able to not use any of our own cash and procure a cash flowing rental property that is brand new (expecting pretty low maintenance for a few years) in an area that is experiencing very good growth! The next set of units for sale were already almost $20,000 more than what we bought this for – – instant equity!
For more Colorado Springs Deal Analyses including house hacks and multi family properties, check out our Colorado Springs Deal Analyses page.
YouTube Video: Rental Property Analysis – Colorado Springs Turnkey Townhome
Podcast (colorado-springs-real-estate-investing-podcast): Play in new window | Download (Duration: 18:26 — 21.1MB)
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