All Forum Posts by: Kristofer Kersnick

@Matt M. Thanks for the info! The comps are exactly why I feel that this property could be in an area in the beginning of the gentrification process. The comps I am finding seem to to have been flips.

@Steve K. You are right about selling the them individually. I do not believe the lay out of the property would allow me to do that. I believe I am going to just increase rent and include utilities. Thanks for the help!

@Teri Feeney Styers You make a good point about not rocking the boat. My current plan is to refinance in a couple of years and keep the property. That does not mean that selling the property in a couple years is completely out of the question. In both scenarios I would like to have added value to the home and built some more equity in. It seems like converting it to a duplex is not the smartest path for value add. Thank you for your input!

@Gretchen P. I plan to house hack this property, so in that situation it does make a good rental. I would be living in the ADU and renting out the primary residence. I have heard the overall process for meters can be pretty pricey. The reason I am looking to convert it to a duplex is to add value. I was told that being able to list it as a "multi-family" instead of "income potential" would add a decent amount of value. This property is difficult to find comps because of the ADU and it is much larger than other properties in the area. There was one single family residence in the are that was very similar in SQFT, but had nicer finishes and it sold for about $30,000 more than what my pocket listing is at. Other multi-family properties have sold for more than $50,000 over the pocket listing price.

@Chris Lopez Understandable about not finding an agent to work directly with me on this particular deal. I guess what I meant to ask for was an agent who knows about ADU's and could help me look at other properties with ADU's. I would like an agent who could help answer the question "Does converting the ADU to a duplex add value?", and if it does then how much? I would like to see properties in other areas with ADUs around the same price range to hopefully find a better neighborhood. If I can find properties like that, I would pass on this pocket listing. Also thank you for the link the the other ADU discussion!

A real estate agent presented me with a pocket listing in Denver that is a single family home with an ADU. I am told that it can not be marketed as a duplex because it only has one address and only one water and gas meter. The ADU is the basement unit which has egress windows and a private entrance. The property is not in a prime location but I have reason to believe that the neighborhood is in the process of gentrification.

What signs do you look for in a neighborhood for gentrification and appreciation potential?

What is the process to get the city of Denver to recognize an ADU as a duplex? It is zoned for a two unit property (E-TU-C) and already has a full kitchen and laundry room. The only advice I can find is about permitting and building an ADU in Denver.

How do i appropriately price a property with an ADU?

I would love to find a real estate agent who specializes in ADUs so that I can see if this is a good deal and hopefully purchase more and convert them to a proper duplex.