Denver, CO Live/Work Rehab - Micki McNie

Denver, CO Live/Work Rehab - Micki McNie

Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes

Alright, I'm going to try this deal diary thing out.  I'm one of those people who likes to have everything wrapped up so I can post a success story but this should be a fun process to go through so I'll bring you along with me. (I'll save my numbers til the end if you don't mind.)

Now that the Biker Bar is done I decided I would prefer to do deals closer to home and stuff I'm really passionate about.  What would meet that criteria here in Denver?  Small scale live/work that's super funky... basically my own personal dream home.

I immediately found a handful of candidates but the winner was on Federal near 10th.  This week we got under contract and have gone through environmental and mechanical due diligence - everything went well which makes me happy on the one hand but disappoints my inner negotiator who wanted some leverage on the price.  We're starting to work on drawings so we can get in line for permits which is going to take a while.

Going through this process on a building designated commercial is a bit more involved so I'm learning a lot. Fortunately a colleague who has experience really liked the project and is doing it with me.  Here's a little video of the space (apparently I'm a sucker for POS properties full of junk).  The vision is to create an industrial loft feel with an open plan.  The front 1/3 will be dedicated to office/commercial use and the back 2/3 will be living space, but the usage is flexible throughout.  We'll pop in a glass roller door to the back and create a zen garden and roof deck (which has killer views).  Stay tuned...

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Bill S.Pro Member
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Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
10y

Let's have a meetup there at some point so we can see the work and you can get some free marketing.

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  • Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes
    10y

    Time to wrap up this series.  The property is not sold, but it is rented as a live/work to a personal trainer and is paying for itself.  The time I spent living there reinforced how great the neighborhood is and the fast pace at which more social infrastructure is opening up nearby (Colorado Cider Company, Alamo Drafthouse, Starbucks).

    Major takeaways:

    1. Hire the right contractor the first time and make sure your budget is clear.
    2. Just put a new roof on right away.
    3. Mixed use (live/work) confuses everyone from inspectors to insurance companies because it doesn't fit their little square boxes.
    4. If you're a visionary and come early to the neighborhood, plan on holding the building for a few years rather than flipping. Everyone thinks it's cool, but not everyone is prepared to pay the price for being cool.

    I learned a lot on this project that will definitely benefit future ones.  Even though this didn't turn out exactly as planned, it's working, and I'm sure will pay off well as a longer hold.

    Next project is underway - total opposite - a 2 bed condo in Highlands with minimal work needed.

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    @Micki M. WOW, just WOW. What a transformation! 

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