Deal Analysis – Colorado Springs Turnkey Townhome

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.

Investor Profile

• 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.

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:
  • Turnkey
  • 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

Conclusion

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