Old Town Arvada (CO) ADU / Redevelopment Play?

Question

Curious how other investors would approach this one.

I have a property coming up in Old Town Arvada (Denver Metro) that seems to offer a lot of flexibility, and I’d love to get some outside perspective on highest and best use.

Quick details:
• 3 bed, 1 bath | 1,742 sq ft
• $675K
• 12,000+ sq ft lot (oversized for this location)
• 1 block from Main Street (walkable to shops, dining, light rail)
• Detached 2-car garage with ADU potential
• Urban Mixed-Use zoning (residential, live/work, redevelopment)

From my perspective, a few potential plays:
→ House hack with future ADU
→ Long-term hold in a high-demand, walkable area
→ Live/work setup
→ Redevelopment play given zoning + lot size

It’s in one of the most desirable pockets of Arvada (and Arvada is hot in the larger Denver Metro Market), and the combination of location + lot size + zoning flexibility feels like where the upside is.

Question for the group:
How would you approach this?
Lean into ADU + hold, or view it more as a longer-term redevelopment opportunity?

Curious what strategies you’d prioritize in a market like this.

Aaron Zimmerman · Answer

What is your skillset and what deals have you done previously? To me, redeveloping could be a great play but if you don't have the skillset or partners, it might Not be.

i have a good friend that lives in Arvada and it's a great town!

Jackie Weinhold · Answer

@Richard Golding Thank you-the house hack play with renting while permitting the ADU is a GREAT angle for me to present to investors. Appreciate it!

Richard Golding · Answer

Don’t choose based on the highest profit on your spreadsheet choose based on Risk-Adjusted Return on Time.

The ADU/Redevelopment Trap: These aren't construction projects; they are permitting marathons. In many markets, you’ll spend 12 months paying carrying costs (interest/taxes) before you hammer a single nail. If your cash is tight, the 'high upside' will be eaten by interest.

The Gut Reno Tax: This is the only path with 'unknown unknowns.' Until the walls are open, your budget is a guess. If you can't carry a 20% contingency, don't touch a gut renovation.

The 'House Hack' Reality: This is the winner for speed. If you can get a tenant in within 90 days while you're still permitting the ADU, your cash flow protects the rest of the project.

The Bottom Line: Complexity is a debt you pay in stress. If you're new, favor the 'Cosmetic Value-Add.' It’s the fastest path to income and the hardest one to screw up.

Eric DeNardo · Answer

@Jackie Weinhold, It's an interesting property Jackie. I'd be curious to know the exact zoning it's in and how the lot is setup. The highest and best use of the property could be development vs. househack or ADU approach (most residential zoning allow ADUs). I'd be happy to chat with you and see the possibilities.

Old Town Arvada (CO) ADU / Redevelopment Play?

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