Deal Analysis – Duplex House Hack in Lakewood

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.

This property closed Q3 – 2020.

Investor Profile

• First time buyers
• Moved to Denver a few years ago and looking to start building real estate portfolio through house hacking

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details

• Type: Duplex
• 2 bedroom, 1 bathroom in each unit
• Location: Lakewood & West Colfax
• List Price: $435,000
• Purchase Price: $435,000
• Why we liked it:
  • Great Location, west side of town
  • Upside of sweat equity
  • Layout of unit very open

Property Contract Details

• Finding the property: Found on the MLS
• Under contract:  At list price even with multiple offers because of agent relationship and strong offer (Secret Sauce)
• Inspection Concerns:
  • Sewer line root issues
  • Ungrounded electrical
  • Other minor items
• Inspection negotiation outcome:
  • Seller cleared sewer lines
  • Seller provided concession for other items

Property Financing Details

• Lender: FHA
• Loan Type: 30 year FHA
• Appraisal: Above.
• Seller Concessions: $3,500
• PMI: Monthly
• Interest Rate Buy Down?: No

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

Finding a duplex on the west side of town at this price point was awesome! The clients were willing to put some work in and wanting to have a real duplex for their first property.

To see more house hack deal analyses like this one, check out our other house hack Deal Analyses.

YouTube Video: Rental Property Analysis – Duplex House Hack in Lakewood