Securing an off market (nearly) turn-key Duplex in Englewood, CO

[Stuart Crowell]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $430,000
Cash invested: $65,000

Off market (mostly) turn-key up down duplex. We purchased the unit in an under-managed condition. Added a washer/dryer to the top floor and split the lot with a fence. We were able to improve gross rents by $350/mo with a few quick tweaks. Purchased ~10% under market value.

What made you interested in investing in this type of deal?

They are often overlooked in Engelwood. A few little tweaks can make a big difference in gross rent.

How did you find this deal and how did you negotiate it?

Personal networks, I represented myself.

How did you finance this deal?

Conventional loan, 20% down. Used commission in the deal.

How did you add value to the deal?

Added a W&D to the top unit and split the lot with a fence allowing for private yards.

What was the outcome?

Gross rent improvement of $350/mo. Immediately leased both units (inherited one unit vacant and one unit with a month to go)

Lessons learned? Challenges?

Engelwood is overlooked. Don't trust a tenant growing a pot farm in their backyard (lol!)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself and my partner, both licensed and active real estate advisors.