Boulder Calc Review Help Me Analyze This Colorado BRRRR Deal

[Michael Glaser]

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*This link comes directly from our calculators, based on information input by the member who posted.

Looking to relocate to Denver/Boulder in 3-5 years with my fiance by transitioning 100% from my W-2 to full-time REI. I'm slowly building properties in Kansas City my hometown while living in Los Angeles while also looking for a house in Boulder, CO. Not interesting in house hacking out of the gate in Boulder.

Looking to BRRRR in the next few years in Boulder knowing in the short-term I'll lose money, but in the long range have a house set up to live in once we move. At least that's the plan in my head.

Plugging some numbers in here's what I'm thinking about:

House is less than a block from CU's campus. 2 blocks from Pearl Street. (This is a real property I'm looking at)

$650,000 - Purchase price

2BR 1Bath

877sqft

$150,000 - Construction rehab loan

$15,000 - Closing costs

$800,000 - TOTAL

5,500sqft lot/1.3acres

CONSTRUCTION:

- Add 1x bedroom w/ closet ground floor w/ bathroom

- Add second-floor master bed & bath

- Add loft/office area

House would be a 4BR 3 Bath when construction is complete.

ARV $1,450,000

2636sqft at $550/sqft. 

Rents would be between $4400 - $4700/month.

How insanely illogical is this idea?

[Mindy Jensen]

@Michael Glaser, you got some good info from @Rocco Montana , but let me give you a more accurate view of rehabbing in Boulder.

It will take you 1,000 years to get a permit. 

Boulder does not need your increased tax dollars, they don't want any change to their city, and they drag their feet forever to not only give permission but also to approve anything.

If you do not have 1,000 years to patiently wait for a permit to be approved (almost a sure bet you miss something on the original and it gets denied at least once) then do not buy in Boulder.

Come to Longmont, where it will take you 20-30 minutes to get to Boulder, but our permit office WANTS you to improve the city, and our inspectors want you to pass - as long as you are following the building code.