Tennyson Multi Family 4 Plex Fix and Flip (Denver, CO)

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Tennyson Multi Family 4 Plex Fix and Flip (Denver, CO)

Terrance Doyle
Rental Property Investor · Denver, CO · Member since 2017 · 35 posts · 21 votes

Investment Info:

Large multi-family (5+ units) fix & flip investment in Denver.

Purchase price: $490,000

Cash invested: $222,055

Sale price: $850,000

Here's our newly renovated 4 plex in the Westminster area of Denver. All four units are 2BR/1.5BA, 975 square feet and fully leased at 1,550 in rents plus 100 in RUBS for a total of 1,650 in gross income per unit. It is going to be sold to someone in our network at $850,000. 

To see our financials and how we were able to achieve a 70% annualized return on our capital, click here - https://drive.google.com/open?id=1q5uTGrHy7Ng2pP4OXqNF_KYboAvWqxT0

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  • Matt Barge
    Investor · Member since 2022 · 22 posts · 4 votes
    3y

    How long after rehab and rent did you sell the property? Did you find buyers needed a certain amount of seasoning? Thanks!

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Matt Barge Why would a buyer need seasoning? And what type of seasoning are you referring to?

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
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  • Matt Barge
    Investor · Member since 2022 · 22 posts · 4 votes
    3y

    @Alex Bekeza thanks for replying. The new post-renovation performance has a different NOI profile than pre-renovation, so I was just curious if buyers would want to see the post-renovation performance for X period of time after renovation. I was also curious if their lender would require a certain period of time on the P&L post-renovation to back their loan. Thanks

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Matt Barge

    I see what you're saying. No, I've originated hundreds of mortgages on 1-4 unit properties and a P & L has never once been required. The lender will require lease agreements from all occupied units in the appraisal and analyze them next to the rent comparables table in the 1025 form used on a 4plex appraisal to determine whether the current NOI is in at, above, or below the market.

    When it comes to 5 + unit properties, they will want to review P & Ls but they're not going to hold recent improvements against the seller if the current income vs expenses are in line with the market.  Lenders will tend to use the lower of actual or market performance in qualifying the loan. 

    In the case of the original post here about a 4plex, the lender will use the lower of actual rents or market rents regardless of the seasoning when determining DSCR for example.

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    0Reply
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