Edgewater,CO Buy and Hold

[David Williams]

Investment Info:

Single-family residence buy & hold investment in Edgewater.

Purchase price: $351,000
Cash invested: $65,000

1909 SFR mini victorian in major need of renovations
Purchase Price: $351,000
Loan amount after cashout refi: $375,000
Estimated Annual Rent: $30,000 gross / $25,500 net
Downpayment/closing costs: $23,000
Seller Concessions: $18,000
Repair Costs: $50,000
ROI: 35%
Cash on Cash Return of: 20%

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

Looking to build a rental portfolio here in the greater Denver area

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

MLS though real estate agent. Issues on inspection and were able to get $18,000 in seller concessions.

How did you finance this deal?

Traditional owner occupant mortgage with 5% down

How did you add value to the deal?

Full renovation of all surfaces. New paint, flooring, new kitchen remodel, complete basement refinish, complete landscaping refinish,
structural reinforced and water mitigation added

What was the outcome?

Complete our 1 year of residence in summer 2021. Have performed a cash out refinance and have downpayment for next purchase with plan to purchase in August 2021. Will hold this investment with anticipated rent of $2,500/mo.

Lessons learned? Challenges?

No problem cannot be fixed. Some things may seem scary initially, but with the right people and a budget to handle problems, any issue can be resolved.
Sweat equity during a pandemic really paid off!