Just Listed: 7055 E 60th Place, Commerce City, CO 80022
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.