List Price: 405k

If you’re looking for cash flowing Denver Investment Properties for sale, this Denver 4-plex for sale is a great place to start.  All units are 2 bedrooms, 1 bath.  Each unit is currently on a month to month lease, I see that as a benefit to the new Buyer.  Lets take a look at how this Denver Income Property is currently performing:

AAI (Average Annual Income): $36,480

AAE (Average Annual Expenses): $10,575

AANI (Average Annual Net Income): $25,905

PAI (Projected Annual Income): $40,529

PAE (Projected Annual Expenses): $6,526

PANI (Projected Annual Net Income): $34,003

Based off the number above, the subject property is performing at a mid 6% Cap Rate.  There are a few ways owners/investors can increase Cap rates:

First, you could raise rents.  Our subject property currently has month to month leases in place. Denver vacancy rates are extremely low right now, rents are on the rise.  Raise rents immediately for increased cash flow/higher Cap rate.

Second, as the owner, implement utility bill backs to the tenants instead of paying their utilities for them.  This eliminates a good amount of your expenses and places those previous expenses into annual income, hence more cash flow/larger Cap rate.

Interest rates are still low, now is an amazing time to become apart of the Denver investment market and this is a great property to get started with!

Contact me, Brian MacMillan, for more info.

The historically low rates aren’t the only reason why you should be interested in buying Denver rental properties right now, there are several other factors to consider as well.

First, lets discuss what is currently going on in the Denver real estate market overall.  With the federal tax credit expiring at the end of April, showings on metro properties during the months of May & June drastically decreased.  With showings down, total sales have gone down along with it.  This caused a shift in the market, going from a Seller’s market in March & April, to a Buyer’s market in May and the months that followed.  This Buyer’s market is a perfect opportunity for investors to purchase real estate while the market favors them.

Another key factor to evaluate when purchasing rental properties is what the current vacancy rates are.  Vacancy rates are a measure of the number of units vacant or empty, not producing rental income.  In 2004, the vacancy rate in Denver Metro was 13.1%.  In 2005, it was 9.5%. In 2009, it was 5.2%.  Now, the Denver Metro vacancy rate is 3.8%!!  These figures are based off 1-4 unit properties.

With historically low interest rates matched with historically low vacancy rates, it is a great time to be a landlord.  Units are full and landlords have the upper hand with tenants.  Rents are also increasing, resulting in maximum cash flow to the investor!!

It is relatively easy to qualify for a loan on rental properties currently.  Basic requirements: 20% down, a job, 680 or higher FICO score, no major hits on the credit report.  If you need a referral for a great mortgage broker to speak with, just ask!

There are several great Denver rental properties available right now, we just need to talk about what your short and long term goals are and get out to see a few that fits your criteria.  If you’d like to search yourself to get an idea what is available, feel free to use my Denver Investment Properties free MLS site to search yourself:

http://denverinvestmentproperties.com/metro-denver-income-properties/

Regards–

Brian MacMillan

Your Castle Real Estate

First time homebuyers couldn’t pick a better time to buy their first house: interest rates stupid low, 8k tax credit, and a relative Buyer’s market in Denver and Boulder.

Current homeowners looking to refinance also couldn’t pick a much better time. Here is an article in the Denver Post discussing the rate drop, as well the influx in refinance applications lenders are currently receiving.