Sold Price: $1,125,000

I represented the Seller on the sale of this 6 unit apartment building in City Park West/Uptown that was grossing close to 100k/annually.

Once the sale was completed my Seller finalized a reverse 1031 exchange (replacement property was bought first, then this building was sold afterwards).

This was a bittersweet deal because I helped the Seller buy this building over 10 yrs ago too. The new owner has extensive experience with older properties and plans to continue preserving the property for future generations to enjoy.

Interested in Denver apartment buildings for sale? Reach out to discuss further…

Offered @ $1,075,000

Here’s your chance to own a classic all brick triplex in Denver with a great central location, only blocks to many of the top restaurants/shops/bars on 6th Ave and everything Wash Park offers less than a mile away.

Both the main level unit and the upper level unit have 2 bedrooms and a full bath. The basement unit has a side entry and is a 1b/1b. All tenants have access to laundry in the basement.

This building works great for an owner occupant or an investor who wants to add an A+ assets to their portfolio.

Reach out directly to schedule a showing or for financials.

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!!

Sold Price: $1,440,000

I represented a long time friend/client on the acquisition of this 6 unit apartment building in the Cheesman Park/Capitol Hill area of Denver. All units are very spacious, offer a good unit mix, include washers/dryers in all units, and have private outdoor decks/patios for each unit/tenant to enjoy. There is some room to push rents and some capital improvement opportunities to help push future rents as well.

From the Denver Post yesterday:

Nationally, median monthly rents went from $817 in 2009 to $1,163 in 2021, a gain of 42%. Denver’s gain was 82%, going from $856 a month to $1,554. That jump, almost double the pace experienced nationally, was second to only San Jose, the hub of California’s Silicon Valley, where monthly rents went up 85%, from $1,360 to $2,511.

If you’re interested in Denver Investment Properties lets discuss what options could work for you and get started growing your retirement portfolio!

Sold Price: $1,150,000

I represented the Buyers on this purchase who purchased as an owner occupant (they plan to live in 1 of the 4 units as their primary residence).

My clients are planning on fixing up all 4 units as they become available over the next few yrs, then raising rents to market rates, and potentially doing the same process all over again while keeping this building as a cash flowing investment.

Lets talk about interest rates and how those affected this deal….we were able to get a large Seller concession to buy my client’s rate down through a 3-2-1 buy down. My clients have a 3% interest rate for the first year which allows them to live essentially mortgage free (the 3 other units are paying the mortgage through their rent payments) the first yr, which then allows them to put $$ back into the property that they might not have with our current market rates.

If you have desire, motivation, and dreams to get ahead in life, this scenario is for you! Reach out to discuss further, I’m Not Hard To Find.

Vacancy Rate: Ending Fourth Quarter, we saw a slight vacancy rise to 5.2% from 4.4% last quarter. Vacancy is always highest in this fourth quarter and usually lowest in the summer, so this remains consistent with previous years. We’re seeing two-bedroom, two-bathroom units at the highest vacancy rate (5.7%) and efficiencies and one-bedroom units at the lowest vacancy rate (4.9%).

Historically, larger apartment buildings have higher vacancy rates, and this was evident in the stats from this quarter: Buildings with 200-349 had a vacancy rate of 5.6% and buildings with 9-50 units had a vacancy rate of 3.4%.

This slight jump in vacancies could be a result of the 832 new apartment units that were reported for this quarter.

Average Rent: Typically we see average rent decline very slightly from third quarter to fourth quarter, and this year was no exception, but overall this trend is very favorable for landlords.

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.

Lets break down some key factors and how they’ll affect the rest of this yr:

Interest Rates: Both owner and non-owner occupant rates are super low, almost free money.  Savvy investors are buying now because they’re cash flowing more due to these low rates.

Vacancy Rates: My clients tell me all the time they put an ad on Craigslist and have 20 responses in less than an hr.  Inventory can’t keep up with demand, which means bidding wars amongst renters.  I was speaking with another agent last week, he told me he just rented out a house to a business owner that gave him $1,000 to spend at her retail shop in Denver if he accepted her application.

Market Rents: Supply & Demand 101, extremely low vacancy rates means rents are soaring.

Appreciation: There is a huge pinch happening right now in Denver and the surrounding areas.  Homes/Condos available for purchase are extremely limited.  Denver’s population is the largest its ever been right now and our inventory is the lowest its ever been since the MLS has been in existence!!  Same is true for Denver Income Properties for sale due to low interest and vacancy rates, matched with soaring rents and appreciation.  My office, in the Lower Highlands/LoHi, appreciated 26% last yr!

Everyone’s situation is different.  Give me a call/email to discuss how to get started, or maybe take advantage of selling a current asset and utilize a 1031 exchange into a larger asset.  Denver Investment Properties are on fire right now, lets talk to see how you can take advantage of the factors mentioned above:

Brian MacMillan: Investment Specialist

720-938-4350

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.