Deal Analysis Twofer – Two Denver House Hackers

This post highlights two recent house hack purchases from our clients Patrick and Noelle. The podcast discusses how they started their real estate investing journey and how their goals have evolved.

The first analysis is Noelle’s house hack in Athmar Park. The next deal analysis discusses Patrick’s second house hack in Lakewood with an ADU.

Deal Analysis #1: Athmar Park Room by Room House Hack

Our client was a first time house hacker looking to get started in her real estate journey. Initially, we were focused on small multi units but lack of inventory was making that difficult, so we turned our search toward finding a solid room by room single family strategy.

This property closed Q4 – 2020.

Investor Profile

• First investment property
• Wants to house hack and do room by room rental
• Looking at solid cash flow

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details

• Type: Single Family Detached
• 4 bedroom, 3 bathroom
• Location: Athmar Park
• List Price: $499,000
• Purchase Price: $478,000
• Why we liked it:
  • Location
  • Fully renovated
  • Corner lot
  • Large detached garage

Property Contract Details

• Finding the property: Property had been UC and got stale on the market, relationship with other agent
• Under contract:  Below ask and secret sauce
• Inspection Concerns:
  • Sewer line issues
  • Roof repairs
• Inspection negotiation outcome:
  • Seller replaced sewer line

Property Financing Details

• Lender: Conventional
• Loan Type: 30 year conventional
• Appraisal: above value, no issues.
• Seller Concessions: 0
• PMI: N/A
• Interest Rate Buy Down?: Yes

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

This rental is in a great location and will have low maintenance with the recent rehab. It’s also an area with great rent rates.

Deal Analysis #2: Lakewood House Hack with ADU

Our client was ready to get going on his second house hack property and continue building his portfolio. The timing worked out great as we found a fully renovated property on the west side of town with a legal carriage house on a large lot.

This property closed Q4 – 2020.

Investor Profile

• Current house hacker looking for the next move
• Likes the west side of town
• Learned a lot from first house hack to have realistic expectations for #2

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Rental Properties.

Investment Property Details

• Type: Single Family House with ADU
• Main House – 2 Bedroom, 1 Bathroom
• ADU – 1 Bedroom, 1 Bathroom
• Location: NW Lakewood
• List Price: $485,000
• Purchase Price: $482,000
• Why we liked it:
  • House and ADU on a huge lot
  • Space for boat, RV, recreational or any type of vehicles
  • Both Units have been completely remodeled
  • Large storage unit
  • The tiny house was rented for $1200 per month.
  • Turn-key rental-investment or live in one and rent the other.
  • New furnaces (2), new water heaters (2), new appliances in both units, new paint in and out, new everything!!
  • Detached garage/studio

Property Contract Details

• Finding the property: Property previously under contract and we were able to get it under asking when it came back on the market
• Under contract:  Under ask and secret sauce
• Inspection Concerns:
  • Roof
  • Electrical
  • Sewer
  • Trees
• Inspection negotiation outcome:
  • New Roof
  • Seller Concession of $3k

Property Financing Details

• Lender: Conventional
• Loan Type: 30 year conventional
• Appraisal: above, the second time.
• Seller Concessions: $3,000
• PMI: N/A
• Interest Rate Buy Down?: Yes

Spreadsheet Rental Analysis After Move Out

Property Operating Expenses After Move Out

First Year Returns After Move Out

Conclusion

This is a very unique property with great cashflow in an awesome part of town.

To see more house hack deal analyses like these, check out our other house hack Deal Analyses. From there you can also search for Deal Analyses for Nomad, condo, multifamily and flip properties.

YouTube Video: Rental Property Analysis Twofer – Two Denver House Hackers