Denver Investor looking for 1.5MM Cash Deal

Looking for a multi unit wholesale deal Washington Park Capitol Hill Area, prefereably rehab needed, Ideal property would be 12%+ CAP rate 1.0-1.3 with 200K or so needed for repair NO STRUCTURE ISSUES, I need good guts. Can deal with plumbing.

Also on seperarte deal looking for some handy man specials in aurora that fit the 50% 2% rule, single family up to four units.

Edited: 06/26/2010 at 08:16AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost May 19 '09, 12:38 PM

The 2% rule doesn't really apply with the rents in that area. For $1000 rent, assuming 50% for expenses, you have NOI of $500. Subtract $100 for cash flow and that leaves a max payment of $400. At 7% and 30 years, that's a loan amount (i.e., purchase price) of$60K. That's 1.66%.

Still extremely tough to find in that area. I'd take one (or more) of those deals, too.

I've seen nothing in Wash Park or Capital Hill priced anywhere near that price. I don't know what buyers are thinking in those areas. Making money is clearly not their goal.

Edited: 06/26/2010 at 08:16AM

Jon Holdman, Flying Phoenix LLC

Masa Don

Real Estate Investor · Greenwood Village, Colorado

41 posts
33 Influence
1 Award

Icon_minipost May 22 '09, 04:34 AM

Yes I agree I have not seen any deals in that area either, it seems as though the majority of Colorado is working the same way with no approach to cash flow just a hope and a prayor the price will go up.

Edited: 06/26/2010 at 08:18AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost May 22 '09, 05:29 AM

There are locations that come pretty close to being cash flow positive or actually are cash flow positive. Just not the ones you mention. Sorry, but its so competitive in those areas I'm not going to say them publicly.

Edited: 06/26/2010 at 08:18AM

Jon Holdman, Flying Phoenix LLC

Mike Eiler

· Colorado

2 posts
4 Influence

Icon_minipost May 25 '09, 09:08 AM

How's Colorado Springs look to you, Jon? Know much about that area?

Edited: 06/26/2010 at 08:19AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost May 25 '09, 12:22 PM

Nope, haven't really look at CO Springs. Sorry. Bad enough to drive across Denver.

Edited: 06/26/2010 at 08:20AM

Jon Holdman, Flying Phoenix LLC

Ray Allen

Real Estate Investor · Denver , Colorado

12 posts
18 Influence
1 Award

Icon_minipost Aug 23 '09, 10:31 PM

Don,

Are you still looking for a Deal in Wash Park? I might have something for you! I have a triplex that you could buy for about 575k. Potential scrape and duplex. The duplex across the street sold for about 700 per side. Let me know!

Ray

Edited: 06/26/2010 at 09:28AM

Greg Schickedanz

Real Estate Broker · Highlands Ranch, Colorado

94 posts
441 Influence

Icon_minipost Aug 26 '09, 05:18 AM

Hi Don,

Personally, I have never seen anything approaching a 12 cap in Wash Park or Capitol Hill. Most are 4 to 8 caps (if you're lucky). I do know of 2 9 to 9.5 caps - both in Capitol Hill - one is a 17 unit apt. building, the other is a former mansion - now a B & B. Let me know if you are interested in either.

Greg

Edited: 06/26/2010 at 09:29AM