JUST SOLD: 6 Unit Uptown/Denver Apartment Building

My latest Just Sold Denver Investment Property was a 6 unit Denver apartment building for sale in the Uptown, hot up & coming, area of Denver:

Address: 1631 Race St, Denver 80206

Asking Price: 535k

I, Brian MacMillan, represented the Buyer on this transaction.

Final Sales Price: $505,750!!!

Within this Denver income property there are 3 studio units & 3 one bedroom units (with a loft bedroom).  There’s off street parking around back for the tenants and coin operated laundry in the basement (owner owned).

Lets take a look at how the numbers/return breaks out on this Denver investment/income property:

AAI (Average Annual Income): $49,692

AAE (Average Annual Expenses): $12,233

AANI (Average Annual Net Income): $37,459

PAI (Projected Annual Income): $52,560

PANI (Projected Annual Net Income, keeping expenses the same): $40,327

The capitalization rate (Cap Rate) off the asking price was 7%.  My client’s current Cap Rate, based upon the reduced sales price, is 7.4%. The pro forma, or projected income, is based upon rents being a little below market value and tenants currently not paying for off-street parking. Once those items are implemented, my client will be looking at a Cap rate of 8%!!

Are your investments currently giving you a return between 7.4-8%??  Are your current investments in a commodity that has a good chance of appreciation, on top of monthly cash flow, in the near and long term??  If not, and you’re interested in finding out more about Denver Income Properties, Contact Me, Brian MacMillan, for more info on how to get started owning Denver Investment Properties.

 

 

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