Single-family residence buy & hold investment in Lakewood.
Purchase price: $425,000
Cash invested: $55,000
Last Room Rented!
This house is a 6/3 in Lakewood, CO near the popular Belmar shopping center. It is set up like a duplex with a 3/2 upstairs and a 3/1 downstairs, both with their own kitchen and laundry room.
I spent two months renovating the upstairs before renting out all 3 rooms up there to cover my mortgage while I renovated the basement. This way I only paid one mortgage payment out of pocket! It took another two months to renovate the downstairs. On both the upstairs and the downstairs I finished the remodel the day before tenants moved in, definitely stressful but talk about efficient margins! The biggest rehab projects were redoing the flooring (with sound barrier underlayment) on the whole house, upgrading the addition on the upstairs to match the quality of the rest of the house, hanging drywall & sound board on the ceiling of the basement and upgrading the basement kitchen/bathroom. I did about 80% of the work and hired out a few odd jobs and all the drywall (ask me about my drywall guy!).
Rehab Cost: $30,000
New ARV: $470,000
This house will start out as a house hack but my long term strategy for this property is to rent out the upstairs by room and then experiment with airbnb in the basement! With the rent comps in my area, I will be looking at around $1600 cashflow and that's with 500/mo in reserves!
With the higher ARV I have from the remodel, I'm hoping to get rid of my PMI in 2 years so that's an additional $300/mo starting 2022!
This is great! i hate PMI too, can't wait to get rid of it
@Kiley Marvin awsome job. Those are great numbers and you have great vision. Too bad there are no deals in the Denver metro area (NOT). Nice work making your own deal.
@Kiley Marvin Great work, looks like a solid long-term investment with a variety of options to maximize cash flow.
@Bill S. Thank you! I'm super excited about how this deal worked out!
@Kiley Marvin good job and good luck!
Nice work, @Kiley Marvin ! A great investment with an awesome longer-term strategy.
Here's an awesome update on this deal:
In Denver (and most of the US) housing values have gone up a ton in the past 7 months that I've owned this home, so I decided to look into a refinance already! It doesn't hurt that interest rates have continued dropping too :)
The appraisal for my refinance came back at 520K! That means I dropped my PMI and still had room to buy down my rate to 2.625% AND bundle all closing costs back into my loan! I paid nothing out of pocket and even got to skip a mortgage payment!
New Cashflow = $2025/mo! (After $500/mo in reserves)
@Kiley Marvin wow!!! That’s amazing!! Great work!
@Kiley Marvin Congrats, great job on refinancing with the rates so low and maximizing your returns on your first one!
@Kiley Marvin congratulations on this investment!
Wow, sounds like a lot of work and it sounds like its paying off. Way get out there and get it
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