Numbers - Colorado Springs Mult-Family

[Cameron Belknap]

Hey guys,

I am looking at multi-family properties in the Colorado Springs area and would like another set of eyes on my numbers. I have one SFH rental in the Denver area, but am interested in the springs due to the large amount of fourplexes available.

Purchase Price - $420k   Estimated rent $3400/mo

Rent Ready Costs - $5k

Closing costs - $6k

Taxes ~$1.4k

Insurance - $2.5k/mo

Utilities - $350/mo ~Landlord paid water/gas (please chime in if you think this is high)

Repairs -$100/mo

Cap-ex $300/mo (Guess, I understand it will be different from property to property)

How do those numbers look? My CoC looks decent, but I am not 100% confident in my inputs without having experience in the area. What are you overall thoughts on the Multi-family market in the springs?

Also recommendations for RE Agents who have a lot of experience with Multi-family appreciated!

Thanks!

Cameron

[Jenn N.]

I own a 4-plex in the Springs. That's about what I pay for water/gas/trash. My units are between 950-1000 per month (rent includes utilities). One is lower bc it hasn’t been updated. We completely updated all the units except one bc tenant was already in there. I’ve owned it for 3 years and we’ve had a few problems but nothing major. I haven’t heard about meth being a major problem down here. It’s not the Midwest (I’m from Indianapolis area originally.) for sure. I screen tenants heavily and talk to them (ask a lot of questions) a lot to get a sense of who they are. For the most part they are good tenants. Sometimes rent is late but they always catch up. I’ve not had a lot of turnover. The market is somewhat tight here so that helps. People talk about what a “bad” area it is and I have to chuckle a little bit. I also used to live in LA so I know what bad areas are...the worst areas in the Springs are nothing compared to LA or Indianapolis. I’ve worked over there by myself and wasn’t scared. Unfortunately the property owner across the street doesn’t maintain his property at all but we knew that. We got a good deal and knew what we were getting into. I’d like to get another 4-plex myself But the cost has gone up so much in the last 3 years. Good luck!