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?