Rentals 4 and 5 closed today

[Linda Weygant]

I closed on Rentals 4 and 5 today.

These are two condos in the same complex where we already have Rental #3.  These are solid, base-hit condos.  We didn't get an awesome deal on either one, but neither are the deals anything to be ashamed of.

#4 is a 2 bed, 1 bath condo that is turnkey.  Bought it for $127,000 and have had lots of interest and showing on it at $1250/mo rent.  Expecting about $430/mo cash flow.  I have applications in and am just waiting for the reports to come back from Smartmove now.

#5 is the same floor model as #4 (and #3, coincidentally).  Bought it for $119,500 and it's also going to rent at $1250.  Expecting about $450/mo cash flow.  Needs some paint and some other minor repairs that will probably all come in at less than $1000.  Have applications in on this one as well (hurry up people, click the button, send the report!)

2 years ago, these units were going for $40,000.  Last December, we picked one up for $85,000 and now, 6 months later, they are at $120 - $125.  That's the Denver market right now.  There is already another unit listed at $130 and it'll go for that, I'm sure.  I'm not counting on appreciation, but if I had to speculate, I'd say these will be at $150-$160 in another 8 months.

[Tristan Cortez]

Congrats!!👍👍

That's a pretty good accomplishment!

I can't wait to close on my first rental!

[George P.]

those numbers must be good over in Colorado,  but 450 for 127k purchase for 2 bed is not to my liking.  if it was a house I'd be OK with it,  but those hoa fees are going to keep climbing up. I hate condos

anyway,  congrats on the purchases.  if u are good with those numbers, keep buying more while u still can.  

[Bill S.]

@Linda Weygant and @Dan Mackin as they say in the business. One is too many and a thousand is not enough. Rent on!

[Emily Du Plessis]

Awesome!  Great job.  Have you had any major issues dealing with condo purchases? Especially with fees that have gone up?

[Linda Weygant]

@Emily Du Plessis

So far, I've had no issues with the townhomes and condos I've purchased. One of the complexes I'm in has a maximum cap rate per year which has actually been hurting their ability to charge enough in fees to cover needed repairs. In order to get around that, they are going to install water meters on each unit and charge us back for water while keeping the HOA fee the same. So it's technically not legally an HOA fee increase, we just have to pay for water as well. I actually support this move and voted for it when the topic came up at the annual meeting. I like having financially solvent HOAs that can take care of repairs.

Another complex I'm in just raised the fee.  $4.00  

[Barry Herbst]

Congrats!

[Linda Weygant]

Ummm.... @Dan Mackin....  

I'm under contract on #6 now.

[Dan Mackin]

@Linda Weygant so by the time i see you in person again you will be very close to having 3 more properties than just 1 month prior. Your dealer really knows how to get you that fix or is just having a great time as the middle man. What location did this one fall in?

[Linda Weygant]

Originally posted by @Dan Mackin:

@Linda Weygant so by the time i see you in person again you will be very close to having 3 more properties than just 1 month prior. Your dealer really knows how to get you that fix or is just having a great time as the middle man. What location did this one fall in?

This one is in Westminster - Jefferson County side - 80031.  Just north of where the old Westminster Mall used to be and where they are doing the town center redevelopment with shopping, restaurants, living spaces and light rail.  I have two of the same floorplan in the same complex that cashflow $1100 per month, so I expect much the same out of this one.

[Dan Mackin]

I know exactly what complex you're talking about. I looked there when I was searching for my first home years ago. I wouldn't call them pretty, but functional seems to be a good word. Honestly for a rental they are a great location. I will say that the closest train station to them will be at Church Ranch and 36 (unless there is a map I'm not seeing), but even that is just a few miles which isn't bad. I'm quite curious to see what the finished town center looks like. That mall was quite the eye sore.

[Linda Weygant]

Eyesore?!?  A significant portion of my teen years were spent in that mall and others like it. 

Last I heard, light rail was supposed to go in just to the south - the station is supposed to go right where 88th meets Harlan.  Here  is the last map I was looking at.  Looks like Boulder extension is now just "future", but it looks like the Orange stuff is what's under construction now.  But the Sheridan & 36 Park N Ride is right there regardless.

I personally like this complex because there is no thru street. Any cars in there belong there, so it makes it nice for kids to run around in the park and other green areas they've got through the complex. There's some deferred maintenance the HOA needs to do, but they've got a plan and are putting it in action.

[Account Closed]

Awesome, Linda! Can I ask where these condos are located? Arvada?

[Linda Weygant]

Originally posted by @Account Closed:

Awesome, Linda! Can I ask where these condos are located? Arvada?

 Condos (#4 & #5) are in Westminster in the Cottonwood Villas complex at 120th & Huron

The townhouse Dan and I were bantering about is also technically Westminster, but on the border with Arvada.

[Siraj Ahmed]

@Linda Weygant Congrats on  your success so far! I wish i can keep closing on deals this fast! i keep getting declined on my deals!