Off-Market Denver Condo

[Brittany Guimond]

Investment Info:

Condo fix & flip investment.

Purchase price: $225,000
Cash invested: $60,000

Contributors:
Grant Guimond

Purchased an off-market condo 2 blocks from desirable Tennyson Street shops and restaurants. Property was distressed due to tenant-caused damages, so we are actively adding value to the unit by giving it a total makeover. Plan is to use it as a primary residence for an aging family member, and then mid/long-term rent it once it's vacant. "Before" photos attached, will upload rehabbed photos when complete in spring 2023. If you've experienced a similar situation — please share any tips/tricks!

What made you interested in investing in this type of deal?

Location and price. Because we were able to buy this condo significantly under market value due to its condition, we are hopeful in its likelihood to cash-flow when it's available for rent.

How did you find this deal and how did you negotiate it?

A real estate colleague knew about my investments and thought I might be interested.

How did you finance this deal?

10% down on a conventional primary with 2-1 interest rate buy-down.

How did you add value to the deal?

Will be gutting the bathroom, adding more cabinets to kitchen, replacing countertop, refinishing floors, replacing appliances, and having the whole home professionally cleaned for tobacco smoke stains and odor.

What was the outcome?

TBD!

Lessons learned? Challenges?

We inherited the tenant for a week between closing and before they were out. We played really nice with the tenant and even gave them more time to move out in hopes they wouldn't squat or damage the property further.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a licensed Colorado agent myself, and I worked with a local lender (shoutout to the amazing Austin Beger at Spire Financial). The seller was represented by an unlicensed agent, which helped us (the buyers) negotiate the best deal, while it did not help the sellers make the highest profit possible.