Denver UGLY House in Hot Neighborhood - $132,500 Profit Potential

[Austin Faux]

I have a Denver property and I was wondering if you guys could look it over and let me know you what you think.  If any of you are interested, or know someone who is interested in buying this place I'm open to that....lol

This property is between Wash Park and Colorado Blvd. Literally facing the Catholic Seminary and it's huge open campus. That area is getting flipped/scraped like CRAZY! The properties are selling between $600,000 to $1,150,000. In fact this property is one of the ugliest properties in the neighborhood!

Here's a look at the property and the neighborhood and I put comps and numbers below.

The Area: (Next to Wash Park and the Catholic Seminary, not too far from Colorado Blvd.)






Property: Here's The Property (Like I said it's one of the ugliest in the neighborhood)



Neighborhood: Here's the house TWO DOORS down:

Neighborhood: Here's a few more houses on the Same Street

Scrape: Here's the other Scrape about 3 Doors Down:
View: Here's the view of the Seminary Campus (Beautiful) from the front of the House:

Inside: If you didn't want to scrape and just rehab here's the insides

(As you can see the inside actually isn't too bad. The Hardwood floors are in good shape. The Kitchen and bath could use some updating and the downstairs basement/carpet needs some attention. Plus if you look at the windows they're actually rather new)

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Comps :Sold: $760,000 - Bed/Bath 3/3 - Sqft. 2069 - Sold Date: 04/29/15 - Click Here for Comp Link

Sold: $770,000 - Bed/Bath 4/1 - Sqft. 1090 - Sold Date: 3/24/15 - Click Here for Comp Link

Sold: $982,000 - Bed/Bath 5/5 - Sqft. 4015 - Sold Date: 07/30/14 - Click Here for Comp Link

Sold: $1,150,000 - Bed/Bath 4/3.5 - Sqft. 4750 - Sold Date: 09/08/14 - Click Here for Comp Link

The Price is $338,000 w/non-refundable $9720 deposit.

Here's how the numbers potentially breakdown:

Purchase: $338,000

Bulldoze/Scrape: $30,000

Rebuild: $350,000 (Another Investor/Realtor Gave Me Estimate for the area)

Misc./Oops: $65,000

Total: $783,000

Sell: $915,000 (Avg. of Comps)

Profit Potential: $132,500

Thanks,

Austin-

[Bill S.]

@Austin Faux a couple of thoughts. Average of comps when you one is a 1,000 sqft property that sold for $770,000 and the other is a 4,000 sqft property that sold for $982,000 is completely like apples and oranges. Break the comps apart. Use the ones with the similar to existing square footage to estimate the rehab ARV. Use the ones that are new builds to estimate the scrape and rebuild value. Figure out your target square footage and then state your average cost to construct for the new build.