Updated over 8 years ago on . Most recent reply
Denver Condo Buy - $40k Under Market
As I'm sure I've posted in the past, I've given up on trying to find "deals" on the MLS. Sure you can find deals, but you really have to work for it and be lucky as well. I'm focusing now on finding off-market deals for myself and clients. I like these opportunities for several reasons, but mainly because they have better margins and there's less competition.
I recently purchased a 2/2 off-market condo in Aurora. We bought the unit for $170K with a tenant in place and paying well under market at $1100/month. Current rates are pushing $1500+. An identical unit just sold for $210k. The complex also backs to the new light rail station that just started running.
The unit is in great shape. We might put new carpet back in or vinyl plank along with newer appliances if it goes to market. But that's it!
We're keeping our options open until the tenant's lease ends in May. But, we can either keep the property as a rental to cash flow or clean it and turn around and list it for $210K+. Either way, this is a solid investment for me. We bought it cash, but would refi back out to free up some funds.
Our market is on fire right now as most of you know. And I've moved away from the full on flip for the most part. These "wholetail" opportunities allow me to take advantage of the feeding frenzy that is the 2017 Denver real estate market. It also reduces my exposure and time investment into each deal. So I'll be able to do more deals without most of the headaches that come along with a full on flip.
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@Jon Ankenbauer just chiming in because but the best way to find off-market deals is get into the community. Door knock, get to know realtors and make sure you're actively participating in the community. You can do this by playing in sports leagues, going to fundraisers, neighborhood meetings etc and talk about real estate and see if people are looking to sell. There are a lot of people out their that have property and didn't even know selling was an option or an option that would make them money. I'm not currently active in the Colorado market since I'm living in Tucson, Arizona but my brother and father have their licenses in Boulder and Littleton and we constantly talk about how the market is going. Right now properties have multiple offers over the asking price it's almost a requirement to find off-market properties to make the best returns. Good luck with finding those deals.