Offered @ $1,195,000

Value Add Opportunity on a great block in City Park West/Uptown! This converted 6 unit offers 3 studio units on the main level and 3 one bedroom units (with lofts) on the second level. All tenants have access to a coin operated (Seller owned) washer/dryer in the basement. Seller is in the process of updating all units once leases come due, currently 4 of the 6 units have been updated. This is a great walkable location to all the hots spots on 17th, City Park, and several hospital/health care providers. This is a great asset without having to do anything, it’s currently bringing in close to 100k annually!!

However, the currently lucrative nature of property investment does not mean that investors should put an offer on the first structure they come across. As with any other venture, a property requires a significant commitment of time and money, and investors would do well to make sure they are getting the best returns on their efforts. Here are five critical issues to consider when preparing to put an offer on an investment opportunity.

1. What state of repair is it in?

Unless owners are looking to get out quickly and are billing their properties outright as fixer-uppers, most houses and apartment buildings will be passable from the outside. Unless you yourself are a licensed HVAC technician, a licensed plumber, and a licensed electrician, it would be in your best interests to make sure qualified specialists can verify that the building is ready for use. A water pipe that’s on the verge of bursting or crumbling insulation will mean a drain on your finances and stress levels later on. Also, see the BRRR investment strategy if the property needs a lot of work.

2. Who will be renting from you?

Get an assessment of the area you’re looking in. If it’s near the University of Denver or one of the University of Colorado campuses, you will likely be renting to students. While you’ll have a constant source of new tenants, turnover is high, and since students are not typically in classes year-round, they may not be as willing to sign a full year’s lease. Renting out a home in a suburban area, on the other hand, is more likely to attract a stable couple or a family, but it may be on the market longer while those renters evaluate their options.

3. How many tenants will you have?

With a single-family property, you’ll have an easy time keeping your current job and performing maintenance on occasional weekends. If you’re looking to buy a building with space for multiple tenants, or that you’re planning to convert to such a space, this investment can turn into a full-time job, but it can also provide enough income to make it worthwhile.

4. What are property taxes like?

Snatching up a property in a booming area means a guarantee of eager rental applicants, but if the taxes or HOA fees are high enough, you might only be breaking even in order to make sure you don’t scare potential tenants off with high rent. A visit to the local tax assessor’s office will let you know how much you can expect to pay, and scrolling through Craigslist or the local newspaper will tell you if rental prices in the area will be high enough to cover the costs.

5. Who do you know about maintenance services?

If you’re planning on renting out a single-family property, you’ll be able to take care of many problems on your own with a little know-how. But multiple tenants and multiple properties will probably mean that you’ll want to delegate maintenance responsibilities to someone else while you oversee the business. If you know of a person or service who is willing to charge a flat rate per month to take care of technical issues on your building or buildings, you’ll spare yourself a few headaches down the line.

This is a great time to purchase a rental property. Just make sure you consider both your available time and finances when looking at sites, and your investment will soon be worth what you’ve put into it.

And one more tip, work with an agent that has first-hand and deep experience in the real estate investment market, like me!

I am here for you so don’t hesitate to contact me.

Sold Price: $905,000

I operated as a transaction broker between Buyers & Sellers on this 5 unit Denver apartment building for sale in the Jefferson Park and Sloans Lake areas of Denver.

List Price: 3.2 M

Sold Price: 2.8M ($400k discount)

Brian MacMillan represented the Buyers on this 48 unit Denver/Capitol Hill apartment building transaction.  All 48 units are studio apartments averaging $550/month in rental income.  After expenses and a few vacancies, this building is netting roughly $20,000/month or $240,000/yr.

Based off the asking price, the CAP was about 7.5%.  After a $400,000 discount, the CAP figured off the sales price of 2.8M, is 8.6%!!

The location of this apartment building is on Poets Row, a small sought after area within the Capitol Hill neighborhood.

If you’re an investor looking for Denver Investment Properties, Contact Me to set up an appointment.  I currently have access to a large development project in Northern Colorado, as well viable options within Denver too.

Brian MacMillan

Denver Investment Properties

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

The Boulder County Business Report wrote an article last week discussing these two new purchases, and the Daily Camera had an article yesterday discussing it as well.

I can say there is quite a bit of speculation that the Houston-based energy giant is considering their recently purchased Louisville, Colorado real estate for their headquarters.  Company spokespersons have been very vague in discussing the new Louisville real estate purchases, leading to the current speculation.

For current Louisville Real Estate for Sale, Contact Me for more info.

Interested in current market conditions in and around the new ConocoPhillips plant, contact me for more info.

Brian MacMillan