Today’s Just Sold Denver Investment Property was a 10 unit, turn of the century, multi-family building in the Capitol Hill section of Denver.  Given that vacancy rates are creeping around 1% in metro Denver, and rents on the rise, this property went under contract quickly.  List price was 915k, final sales price for my Buyer clients was 875k.  The CAP rate (rate of return) at list price was 7.3%, the return on the final sales price was 7.7%.  In it’s current state, the building is bringing in $67,000/yr after expenses.  Buyers are planning several upgrades of the property over the next yr to increase their return even more, probably around the $80,000/yr range.

The layout of the building currently includes 4 studio units, 4 one bedroom units, and 2 two bedroom units.  For those of you familiar with Cap Hill, you know how frustrating finding street parking can be.  The beauty of this building is the 8 reserved parking spots in the rear.  Tenants love not worrying about parking and are willing to pay additional money for a reserved spot in this location!

With the stock market acting like a roller coaster, Denver investment properties are extremely popular right now.  You saw what the returns are above, rents are on the rise, vacancy rates are super low, and Denver falls in the top 5 relocation areas in the country.  Contact Me, Brian MacMillan, for more info on how to get started with similar Denver cash flowing properties.

Here are a few photos of the building:

JUST SOLD: 2059 Eudora St

LIST PRICE: 550k

SOLD PRICE: $508,650 (I represented the Buyers).  Amazing Deal!!!

Today’s Denver Investment Property‘s JUST SOLD home resides in the Park Hill area of Denver.  The style of this home is considered a Denver Square, 3 stories tall, with a basement.  I represented the Buyers on this transaction, they plan to fully renovate the entire home.  Check out the current/before shots, I’ll post some ‘after’ shots this coming spring:

Interested in Denver Investment Property?  Contact Me (Brian MacMillan) for more info, the above property was only on the market 5 days with multiple offers, I work quickly and have software that found this deal.

Denver Investment Property Upgrades, by Naka Designs:

The Denver real estate market has a similar relationship to the economy as do interest rates: when the economy stinks interest rates are low, when the economy is booming rates on borrowing are high. Similarly, when the Denver real estate market is doing poorly, rental rates, and therefore Denver investment properties are flourishing. The Denver real estate market is experiencing record lows relative to apartment vacancies and there is, therefore, a huge demand on investment properties. While there is great competition for apartment rental space, there is also a need for investment property owners to offer the best aesthetic and amenity package at their apartment rental so they can demand the highest rental rates possible.

There are a number of ways a Denver investment property owners can upgrade their building with limited effort and relatively small cost. First of all, curb appeal does matter; so there should always be investment in the landscape and exterior look of the building. A fresh coat of exterior paint with an inviting color palette goes a long way in sprucing up tired rental property! Secondly, the experiences potential residents and existing residents have is important. Common areas (including entry vestibule, mail room, laundry room, and common corridors) should be well lit, clean, and inviting. Again, a fresh coat of paint goes a long way, as do updated light fixtures and new carpeting that is not from the previous millennium!

This is a great time in Denver real estate to have an investment property, as your rental roles are full and you are likely making a nice profit, but don’t forget, a well designed space and building is an in-demand building! Good luck!

Please contact Momo or Fitz at Naka Designs for a consultation on how to spruce up your Denver Investment Property, or Denver primary residence!

Just listed: $437,000

1134 Elizabeth Street, Denver, CO 80206

4 bedrooms, 2 baths and 2,468 total square feet

Total remodel on a classic Congress Park bungalow that includes granite, custom cabinets, and stainless appliances in the kitchen.  Original hardwoods have been preserved and refinished, both baths have been fully updated with high end fixtures and subway tile, yard was professionally landscaped with sprinkler system, and a brand new 2 car garage was added!  This property is priced to move quickly, in a great Congress Park location, check it out now before it’s gone!

Jason Hartman, a wealth creation expert, just ranked Denver in the top 10 for cash producing real estate markets.

Hartman likes to analyze markets based upon three fundamental components: appreciation, leverage, and cash flow. Based upon these three components, he has Denver Investment Properties estimated at a 13.1% return in 2011:

Here is Hartman’s take on values & cash flow:

“The principal value to property investors in Colorado is its attractive cash flow relative to market prices. Denver represents a major market area with characteristics that continue to be favorable for investment. This cash flow offers a significant advantage to investors in the Denver area in particular since it allows investors to ride out volatility in market values.”

If you’re interested in finding out more regarding Denver Investment Properties, I specialize in helping investors acquire single condos, all the way up to large multi-family buildings.  You can Contact Me for more info, as well follow my Facebook Denver Investment Properties page, as well my Facebook Denver Multi-Unit page.

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JUST LISTED: 10564 W 106th Way, Westminster, CO 80021

$181,000

Updated 4 bedroom/2 bath ranch with open floorplan from the kitchen into the living room, LARGE master bedroom with lots of closet space, master bath with jetted tub/body jets/dual sinks, granite counters in kitchen, two bedrooms & full private bath in basement, landscaped front/back yard, new driveway and 6 foot privacy fence, custom bay windows for lots of natural light.

Vitual Tour

For more info or a private showing please Contact Brian MacMillan with Denver Investment Properties.

Louisville, Colorado has once again won the top spot in America’s Best Small Town category.  This is the second time in 3 years this old mining town outside Boulder, Colorado has won the honors from Money Magazine!  Criteria used were strength of schools, very low crime rates, weather (300 days of sunshine), low unemployment numbers, job growth, and location.

Some of the changes that have taken place in Louisville over the past few yrs include:

The old post office in old town has gone through a complete renovation, it now houses Lucky Pie and Sweet Cow.  The old automotive shop a few doors down on the corner of Main & Pine also went through a complete renovation, it now houses LuLu’s BBQ & the Cactus Wheel.  Just down Main St is Rex, they renovated this year and added a rooftop deck.  Empire has been on Main St for awhile now, they replaced Pasquinis.  All are great additions that have been extremely busy since opening.

One of the largest draws to Louisville during the summer is the free Street Faire.  Hundreds came out during the Friday evenings this summer.  They had a climbing wall for kids, jumpy castles/slides/face painting and many booths of local vendors.

Louisville Real Estate has done well over the past few years, especially compared to the rest of the country.  This summer homes have been going under contract in a matter of days.  Currently, the inventory is starting to build again with school going back into session, which means it is a great time to buy if you’re thinking about Louisville Real Estate for sale.  Interest rates are also currently below 4%!  Contact me with any questions or to get out and see what is currently available.

Brian MacMillan

Today the Dow fell 634 points, the 6th worst point decline for the Dow in the last 112 years.  Many investors are thinking their money needs to be in something they consider to be “safe” investment options.

Currently, Denver Investment Properties are seeing CAP rates between 6-10%, dependent upon the location, condition, and current rents the investment property is bringing in.  Many times there is the ability to purchase Denver Investment Properties and increase the CAP rate by improving the property, better management, laundry facilities, etc.  As discussed in my last post, current Denver Investment Property vacancy rates are at a 10 year low.  I’ve heard the popular areas in and around Denver, even up to Boulder, are below 2% currently.  This means owners can raise rents due to the extremely low vacancy levels, ultimately increasing their CAP rate.

There are several Denver Investment Properties currently available, under 12 units, that are producing between a 6-8% return.  These are great properties for the first-time investor to take on and get their feet wet.  Experienced investors could also capitalize on these buildings, and if they own other buildings, just turn it over to a property management firm and still see significant returns.

Now, the last reason one should consider Denver Investment Properties is you’ll own a tangible product, not a piece of paper.  Many outside reporting agencies have put the overall Denver market in the top 10 in the country, so the chances of seeing appreciation on the building itself is pretty good.  You’ll be generating returns from rent, laundry, garage space, etc, but also hopefully seeing future appreciation on the actual real estate.

Please check out my Denver Multi-Unit Facebook Page & my Denver Investment Properties Facebook Page to stay updated on the local market.

Here is a video from today discussing various people’s opinions about today’s stock market loss:

To discuss options that are currently available, please Contact Me for more info.

Brian MacMillan

If you haven’t heard, owning Denver Investment Property right now is gaining popularity.  Why, you ask?  Inventory is low and demand high.  Vacancy rates are below 5% in the Denver metro area; however, I’ve heard numbers supporting below 2% in the following areas: City Park, Congress Park, Cheesman Park, Washington Park, Capitol Hill, Cherry Creek, Riverfront Park, Lower Downtown (Lodo), The Highlands,  and Lower Highlands (Lohi).

The Denver Post just released this article yesterday, here is an excerpt discussing why vacancy rates are so low, and rents on the rise:

“Gordon Von Stroh, a University of Denver business professor and the report’s author, said the vacancy rate reflects a tight market.

“The vacancy numbers haven’t been lower than this since before the dot-com bust in Colorado, and that was a period marked by a scarcity of rental housing in many areas,” said Von Stroh.

Von Stroh said it has become increasingly difficult for people — especially younger people — to move into single-family residences. Key factors are the unemployment rate, tightened credit and higher down payments.

He said there is a population increase in young people in the Denver area of about 35,000 a year, and many move into apartments. There also continues to be a large influx of people [all ages] into Denver.”

I have been hearing this statement quite a bit lately: “We can’t find a rental in the areas we want to be in on Craigslist, what should we do?”  The truth is, most of my clients fill the rare vacancy now with their waiting list, word of mouth, or a sign in the yard for no more than a day.  They are then able to pick what they feel is the most qualified candidate.

There are essentially three buying options right now, regarding Denver Investment Properties, concentrating on Denver Multi-Family buildings.  I’ll be discussing those later this week.  Stay tuned….

For a consultation regarding Denver Investment Properties, please Contact Me for a time to meet.

Brian MacMillan