Denver Multifamily Question

[Evan Miller]

Hello everyone!  I'm a pretty new aspiring investor, and am hoping to make my next property be a 2-5plex somewhere in the Denver area.  given my minimal experience, I know this may be a lofty goal.  But I love Denver (and I live here) so I want to be a part of making our city a good place to live.  Any thoughts on that challenge are welcome as well, but the specific question I have is this:

In my basic MLS search, a 5plex came up in the 80236 zip code that seems to me to be priced a lot lower than I normally expect to see for fjive units in Denver. Looking into it further, there seems to be some potential in the property. My main concern with it is whether or not the neighborhood is a good one in which to invest. I've since learned that the crime rate in that area is relatively high, and my general feel from growing up here is that it is a little bit on the sketchy side. At the same time, Mullen High School is right there so maybe it's a decent neighborhood. Is there anyone out there who may have experience investing in this area?

Here's the property's address:  3860 S Lowell Blvd Denver, CO 80236

[Scott Trench]

I have a couple of thoughts:

1) This property is yes, technically in the city of Denver, but come on it's right on the border with Englewood and farther south than most people consider "Denver" to be. So, you'll get more feedback if you allow investors that know Englewood and Littleton a chance to join in the discussion.

2) This property is up there in terms of the cash flow that you can potentially generate for the purchase price in Denver, sourced from the MLS. I don't know this particular neighborhood, but there is probably a reason for that. Not many places in this city where you can rent a 1bd for less than $700 per month. Who are the tenants?

3) This property is over 100 years old, and it's not exactly in Cap Hill or Wash Park. Repairs and rehab in those neighborhoods cost the exact same amount, but add a very different amount of value. What kind of work does this place need?

If you have great answers to all of these questions, and get perspectives from more Denver folks that have been investing much longer than I, I think you'll be in much better position to determine whether or not to offer on this property, and how much.