Deal or No Deal? West Highlands Half Duplex

This is another episode in our Deal Analysis series focusing on fix and flips with Derek Marlin of ELEVATION. This episode looks at a recently completed half duplex in the West Highlands area of Denver that Derek found off-market.

According to Derek, this is one of the best deal he’s done to date. Read on to find out why!

Listen to the podcast or watch the video for the the full discussion.

Flip Deal Background

• Sourcing: Off market sourced via referral from Project Manager’s family. Always keep your personal circle well informed on what you are doing not just professional circle.
• Why we got the deal: Negotiated against other cash buyer(s), bid was $5k lower but we were up front, professional and said that we “put our best foot forward”. Deal came back around when buyer tired to re-trade without justification.
• Investment Asset: One half of a duplex, side by side bungalow style in W Highlands.
• Property Overview:  Purchased as 2 bed 1 bath on main level, unfinished basement with crawl space, detached 1 car garage (2 car structure shared with neighbor).
• Pricing: $355,200 cash, no commissions, we paid majority of closing costs, flexible to close where seller was most comfortable.
• Inspection Process: In-house inspection with my PM and GC, sewer scope, no structural engineer needed.
• Financing: Cash purchase, 30 day close to give seller time to move.

Flip Buy Analysis

• Key Stats
  • $355,200 cash purchase
  • $58,500 rehab
  • $500,000 ARV
  • Purchased March 16, 2020
• Rehab scope of work (SOW)
  • Full rehab main floor
  • Keep 2/1 layout
  • Minor exterior
  • Landscape
  • 100 Day project
• ARV Determination
  • 8-9 solid comps
  • Well below single family
  • Not far above condos
• Projected Profit:
  • $50,033

The spreadsheet screenshots below are from Derek’s Flip Deal Analyzer spreadsheet (free download.)

Flip Sell Analysis

• Key Updates
  • $355,200 cash purchase
  • $89,608 rehab
  • $515,000 list price
  • Purchased March 16, 2020
• Rehab scope of work (SOW)
  • Full rehab main floor-high end
  • Finish basement: 3/2 layout
  • Master suite in basement
  • 86 Day project-
  • CORONA: No Permits
• ARV Determination
  • Next door sold $479k as 2/1
  • Only 2 listed within $100k
  • Pent up demand post CORONA
• Actual Profit:
  • $92,276 (3^rd best profit)
  • 77 showings, 36 offers
  • $35k appraisal gap negotiation

Download Free Flip Spreadsheets

Download Derek’s free Denver fix and flip spreadsheets including:

• Fix and Flip Deal Analyzer 3.0 to help you quickly analyze potential fix and flip properties in Denver.
• Rehab Pricing Estimator to help estimate rehab costs when you walk the property.

Outcome: Deal!

Based on the spreadsheet analysis, this one is a deal! Let’s get to work!

Before Photos

After Photos

Additional Flip Deal Analyses

Read another flip deal analysis case study about a condo in Congress Park. Or search all our deal analyses where you can filter them to view the types you want to see.

Connect With Derek

If you have a property you would like to run by Derek for a partnership flip or if you would like to schedule a flip consultation, reach out.

YouTube Video: Flip Deal Analysis – West Highlands Half Duplex

Podcast: Play in new window | Download (Duration: 54:38 — 62.5MB)

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