All Forum Posts by: Michael C.

In a similar situation. Would like to hear if you made any progress.

I’m under contract on a legal duplex, currently set up as a triplex also. 
Was planning on trying to rezone it legally to make the numbers work. Very similar situation.  I’m zoned U-RH-3A

The property doesn’t make sense as a side by side duplex. There are no interior stairs. 
To get to the basement of your duplex you have to go outside to the lower entrance. It just doesn’t make sense. 
The property was originally designed as a quad as the neighbors is, just never legally. 

I have been looking hard into the zoning actually as that’s now my biggest worry. 
Iv been reading the zoning articles related to this. 
1. it could be a row house- would need variance to allow doors to not face the street per current zoning  

2. Could be apartment- but would need variance to not be on a corner. 

I have requested all documents and permits for the house I am under contract on and the one next door that’s a quad from Denver zoning review to see what is different. 
The old rules had lot size minimums much larger than current where the next door quad wasn’t big enough to meet either. 6000sqft for 2 unit, 9k for 3, 12k for 4 units.
New rules after 2010 made lot size minimum 6k for all multi family. 
This lot is 6500. 

We extended our objection deadline until Tuesday to try and do some more research.

So if I cannot convert it legally would I be able to add another electric meter? Or is one meter per legal residence allowed?

@Bill S.

Did you rezone the property you did across the street? From 1 property into 4 individual or was it already 4 individual row houses?

Anyone have experience with rezoning in Denver?  duplex to tri or quad?

So some good news. County record is wrong. House is 2800 sqft Same as next door, not 2100 like it’s listed. 

Inspection revealed federal pacific electric panels and mostly non grounded 2 prong outlets.  I will have to get quotes and ask for a modest price adjustment for panel upgrades.

Exterior was good, roof is from 2017, brick didn’t have any cracks or settling. 
Sewer main line found some cast iron build up and small root intrusion. Recommended a hydro jetting for $850, but currently draining fine.

1 heater is about 6 years old, other 2 are over 30 and 1 of the old ones is in-op.

Already knew windows need replaced, Kitchens and baths need update so wasn’t worried about that too much. 

Overall pretty happy.  I may even consider converting to a quad now that I found its 700 sqft bigger not sure yet. Doesn’t look like too much more work. 

Bill that’s awesome you did the project across the street! Small world.

Also looking around on Zillow, the building next door has a 2 bed 1 bath 750 sqft for rent $1525. I messaged the listing agent and said I was under contract on the duplex next door and would love to talk with owner. 
I'm on a MLS feed of duplex's/tris/quads, most seem to be 600+.
I agree price seems high compared to a $480k single family house. I would get turn key really nice place vs this fixer upper. 

One good thing with Denver's STR laws- (owner occupied) me and the wife each take one Part of the duplex as primary and we could still live in one and STR the other 2 out legally. Not sure if people are looking to stay in that area though or if it would be worth it with Denver's rules permits and taxes.

Inspection tomorrow afternoon. 

Thanks Steve that’s awesome research and knowledge. 
I am using the inspection company you recommended, also having a contractor check it out same day as inspection. 

Yes I think comps will have to be duplex’s also. 
The house next door is mirrored of this one and is still set up as a quad so that makes sense. That one sold for 600 last year, single row houses across the street nicely updated sold in the 400’s each.

I think the area is changing with west Colfax starting to spill into north villa park. (Everything that sells is either scrape/build or value add, and it goes for all the money)

But I’m new at this, your points are very good and I have a lot to look into. 

Delivered vacant.

It needs a bunch of work. Some Original single pane windows, flooring, bath and kitchens need updating. Smells like smoke. Paint, general cleanup. I’m planning about $50k rehab.  I’ll do almost all myself and not in a big rush.

Currently putting 20% down. No way it's going VA. I was talking va rehab, but from calling around no one really does them anymore and a 203k takes a long time to close. So it's off the table

Sounds like mixed reviews on 1st bank, so far they have been good. I heard back from loan guy today he said as long as appraisal is good they will do a 5/30 arm @3% with 0 points with 20% down.  Sounds pretty good to me. 

If you want to take a closer look mls# 4447659 under contract at 480.  Let me know what you think. (legally it’s a duplex but has 3 units) I’ll file to get that changed Once I own it.

Fixed up I think it would rent for around 1/1 @ $1000, 2/1 @ $1500, 3/1.75 @ $2000. (Mortgage/tax/ins would  be right around $2000)
Refi into a VA later if I want to pull out $. ARV should be $650-700ish.
But I’d like to hear your thoughts. 

IV been snooping around the forums for a while, just don’t say much. But thanks for the welcome. 
The agent is working as a transaction broker. 
I spoke with an agent at First Bank who is there preferred lender. They gave the verbal "he's good" instead of an official pre approval which is kind of odd but the agent was fine with it. I have over half in cash, 750+ credit, getting approved won't be an issue just finding the best loan. I'm thinking to just get whatever loan has the cheapest closing costs then refi into a VA cash out after repairs are done.

As for the price the agent told me the list price seemed high so make an offer. The seller is an older gentleman who had lived there for the past 25 years. He found his “retirement home” and had a number in mind he needed to get that one. We were able to find that number after some negotiation. 

I guess we will see if price makes sense after inspection and appraisal.