BiggerPockets

Had a Denver investor ask us to tour his property

Thursday, November 19

Max Cash Flow Now: Had a Denver investor ask us to tour his property so he could discover if he could increase his rental property income.  We arrive there last Tuesday and found a two story single family home, which was built in 1910.  We love going through those older homes.  So many quirky little things about them; odd hallways, stairs in weird locations and several exterior doors where you wouldn’t expect them to be.  This home has seven bedrooms and five large full bathrooms, three of the bedrooms had their own private full bath. Amazing!

This home, if rented normally, would only be attractive to a very large family and would probably rent for $1600 a month in the quiet, urban working class neighborhood where it is located. Certainly no more than that.  The investor wanted to see if it would be suitable for our program.  We measured all the bedrooms, counted amenities, proximity to conveniences, ran a few numbers and decided it would work perfectly and his gross monthly rent would amount to $4,500. 

His PITI on the property using private money, currently is $3,500, so he’ll net about $700, after paying a portion of the utilities.  Once a title-seasoning period has passed, he’ll refinance the property to lower his payments, thus, increasing his net well beyond the $700 to around $2,300 per month. 

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