Single Family Home Denver Analysis
Hello everyone! I got a deal in the pipeline and wanted to share my thoughts about it. This deal is in Denver (market is high) and is sort of an off market deal. Basically a family friends parents passed and one of the sons came to Denver to see to be sold. He had originally listed it for $375k, and it got bid up to $395k but at the last minute the seller pulled out because couldn't come up with all the money for down payment.
He needs to leave town and I told him I would be a quick no hassle buyer, where we could skip the buyer commission fee's. We have agreed on a price of $360k. Here's more stats
- Built in 1954, one owner (his parents)
- How is in great shape minus few little things
- Has solar thats totally paid for
- Classic blast from the past decor, probably late 90's style.
- 1800 sq ft
- 4 bedrooms
- 2 baths
- Addition of 3 season enclosed patio with pellet heater
- Appliances all in good shape, water heater is the oldest
- Decent area of town, about 10-15 minutes from downtown Denver
- Taxes are $1604
I ran a fake rental ad, and think I can safely get around $2300 a month. After talking to my loan guy I think this will provide around $600 cash flow. Though this place doesn't fit the 2% or even 1% rule. But I would be banking on cash flow and appreciation, which Denver has been doing a lot of.
The other option would be to try and flip. I've never done a flip before but feel like this place is primed with all the old decor for it. As a gut guess thinking $15k would be enough to turn it around and resell it. So would be around $375k in, thinking could resell in the low $400's based on comps.
Thoughts? Anything else I'm missing?