Investor · Denver, CO · Member since 2014 · 128 posts · 23 votes
Ran across this deal on the MLS. Side by side 2bd/1ba, B location in West/Central Denver, listed at $450K. I did a quick analysis and cannot even get it to CF. I ran it as owner occupied 3.5% down financing, and assumed each side could rent for $1,200 so $2,400 total. Even assuming an aggressive 28% total expenses (no Management Fee) I can barely get it to break even after P+I, let alone return any meaningful Cash on Cash.
On top of this, while functional looking, the interior could use an update. The exterior looks a little sadder, and the roof looks like its well into its useful life.
Does anyone care to add their $0.02? Do you have better assumptions?
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
I was in Denver when the hoards were leaving in '02. It is a very financial and tech-driven city. Once the Broncos went all in with Brian Griese.... No, seriously. It's nice to be optimistic that it will go on forever like @Scott Trench mentions, or realtors in general, but don't get caught in the hype. If, when pencil meets paper and there is red at the bottom - invest elsewhere. You don't need the hassle of tenants and toilets while your losing money every month. (Bleeding as our friend @Ben Leybovichlikes to say!)
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
11y
For what it's worth, I certainly wouldn't call this a B location. Walking distance to hipster heaven Tennyson St strip- primo rental location for young people/couples.