Property Near City Park, Denver Colorado
Hey Guys, This is pretty much my first post. I found a duplex, two 3 bedroom 1200sqft units, Near City Park, maybe about 4 blocks North West of it, in Whittier. They are asking $720k for it and potential rents are $2500/unit, but each unit needs about $25k of work. Not entirely sure which direction to take from here except ask the local guys what their thoughts on the Whittier area are and if I should pursue. Follow up questions welcome. My proforma is showing 12-15% COC, but I don't have debt/equity so I need to either work with an investor or just sell it off as a flip.
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$5000/745,000 =0.7% so not hitting the 1% or 2% rule. Your profits may get eaten up by repairs and cap x. If it is a very new building maybe those numbers will be less than typical. Try running it through the BP rental property calculator
You could see if the owner will offer you seller financing or take their mortgage subject to as a way to potentially lower your holding costs.