Critique my 4 new properties for Denver CO. Love it? Hate it? Alternatives?
Good morning,
I've been trying to find my way forward with purchases in Denver that are great buy-and-hold candidates in a rapidly appreciating environment. Duplexes, 4plexes, and traditional income properties are through the roof and I haven't seen anything worth buying in a couple years, so I changed my criteria and have bought 4 condos/townhomes in the past 3 months with these criteria:
1) Condo or townhome, 3 beds minimum. There seems to be an outsized rental premium for 3-bed vs. 2-bed properties in Denver currently.
2) Built since 2001. I'm not looking for big assessments.
3) Low HOAs/Taxes. A well-managed HOA seems to be money in my pocket each month
4) Cash flow of at least $600 after PITI/HOA is paid.
5) At least 1 car garage per unit
6) Good access to light rail, opening 2016. I think this is a big benefit, perhaps it is overstated?
7) 2-year leases. Vacancy is a stupid problem to have in a great renter's market like this.
8) 20% down financing with 7/1 ARMs at 4%.
I self-manage my properties currently, and love that all the exterior maintenance is taken care of on these units; it makes managing multiple units much more bearable, and I avoid big-ticket items completely, plus don't have to worry about tenants taking care of the lawn.
Here are the numbers for all 4:
1) Purchase price: 116k 2 bed/2ba/1garage
PITIHOA: 655
Rent: 1275
CF: 620
2) Purchase price: 141k 3bed/3ba/no garage
PITIHOA: 755
Rent: 1350
CF: 595
3) Purchase Price: 149k 3bed/3ba/2 garage
PITIHOA: 840
Rent: 1545
CF: 705
4) Purchase Price: 132k 3bed/2ba/1garage
PITIHOA: 835
Rent: 1450 (anticipated, just got this one)
CF: 615
I'm excited about these criteria and my ability to branch out with what I feel to be good investments, in newer buildings, with minimal management on my part. The units are not high-end, but are definitely not low-end either. Makes for more stable tenants. Thoughts? Critiques? Suggestions for other approaches in Denver?
Thank you and have a great day!