Deal Analysis – Colorado Springs Newly Renovated Duplex

This deal analysis is for a newly renovated duplex near Ft Carson.

This property closed Q1 – 2021.

Investor Profile

• Owns multiple rental properties, and has owned them for several years
• Typically likes to BRRRR, but this was a good opportunity for an easy win.

Deal Quadrant: Networking

Investment Property Details

• Type: Duplex
• 2 identical units: 2 bed, 1 bath, 1 car driveway
• Location: Stratmoor
• Initial Offer Price: $319,000
• Purchase Price: $329,000
• Why we liked it:
  • Turnkey
  • Fully renovated, stylish units

Property Contract Details

• Finding the property: Networking
• Under contract:  Was the buyer’s agent on a similar property for a client down the street, and I liked the deal they bought so much, the seller had two other properties on the same street and same updates.
• Inspection Concerns/Negotiation Outcome:
  • Sewer line!

Property Financing Details

• Lender: CornerStone Home Lending
• Loan Type: Conventional
• Appraisal: At Value
• Seller Concessions: $5,000 for closing costs and $3,750 to go towards the sewer line repair.
• PMI: N/A
• Interest Rate Buy Down?: Yes $2,775 for 1.125%, to 3.5%

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

Similar to my townhouse I bought, I used the proceeds from a cash out refinance on rental properties that we had bought a few years ago, to take advantage of the significantly low interest rates and equity growth on those properties.  As a result, we wanted to redeploy the cash out proceeds into additional rental property.  I am very pleased to get almost a 6 cap on a property that I didn’t have to put earned income into, rather was able to leverage equity from existing properties to redeploy.

For more Colorado Springs Deal Analyses including house hacks and multi family properties, check out our Colorado Springs Deal Analyses page.