All Forum Posts by: Patricia Miller

@RJ Jackson Your situation is sounding very familiar to mine here in Denver. As a newbie, I wanted to "get in the game" after being rejected on 3 previous offers. I also have similar goals as you (shorter time frame) so my feedback is -- don't get in the game with this one. I bought a condo at $213K in July, rents around $1450 in this area but have decided to hold it temporarily as a 2nd residence due to the impossibility of the cash flow in this circumstance. Now, I am making minimal improvements (13 year old property) and hope to go for $245K with a resale as properties are still appreciating here at a ridiculous rate. This, unfortunately, will just cover my costs (not including holding costs!) although I could convince myself that it was a good learning experience. The lesson learned, however, was -- this was an obvious no-good deal when I went for it anyway only to experience first hand how a bad deal actually works! Meanwhile, I am not any closer to my buy and hold strategy.

As @Joseph Weisenbloom recommends above, you might have to look outside your target area to truly find the right deal if you want to get started right away. I am realizing I will need to follow that advice, as well, since I am not yet skilled at scoping out those killer deals.

My apologize for letting this post hang but the property went under contract before I had a chance to figure out how to proceed. (I saw it Friday afternoon, it was gone Sunday... and so it goes). Most likely, I was not going to put together financing quickly enough (nor was it necessarily possible), although I did learn that it was probably a good purchase.  As far as I know, it is still under contract -- but if that changes, I will let you know. 

@Bill S.  Hmmmm... very interesting. So this provides motivation to press for more details from county Transportation/Safety division regarding traffic impact fees and any restrictions/fees associated with access to the property (i.e. driveways from adjacent road) + specific tap fees or fees from cable, as well.

Oh, and -- ha -- there is the matter of financing.

Thanks @Bill S. I didn't know I could ask the county about issues related to previous offers - worth checking into.

The property went under contract last Sunday -- I had only learned of it Friday afternoon. However, I won't assume that contract will hold, so, I will use this time to keep digging. 

History of the property in the past year: 1.1 acres with 2200 sqft commercial building listed Dec 2015, price drop 10/31/16 (from $750K to $400K), immediate offer, then relisted 11/11/16. New contract 11/20.

I was under the impression that with 5 lots you are creating a subdivision but not with 4 or less in this county. I'm also aware that tap fees are crazy high and after speaking to P&Z found that I have to subdivide first before beginning individual projects (one building per lot rule) -- most likely requiring 3 additional taps. I have not confirmed those fees yet. 

Property is adjacent to local, collector and arterial roads and is listed TIFA:1 -- Fees will apply.

At the price the property is currently being offered, I'm not sure the numbers work out. Estimating $150/sqft new construction (ballpark), adding $100k in land for the lot for a 2200 sq ft duplex yields a price tag of $430,000. Yes, there are a number of duplexes listed in the $400K - $500K range in the Denver area but those are not cash-flow numbers, I don't believe. Granted, with new construction, if this is turned into a rental, cash flow analysis can be modified to yield a more favorable picture. Not sure what resale could bring, yet.

Still more to learn!

Thanks, @Randall Brown, I did not think about the other providers (cable, etc.). And, the price tag is rising! I think I read somewhere that if I divide this land into 4 lots, it is not a subdivision -- that would be 5 or more lots, so that might save me some additional headaches that go along with requirements for a subdivision.

I will report on my findings from Planning & Zoning today, for any who are interested.

Thanks, @Matt M. I will look into that in the county. But, ouch... yes, just read a blog talking about Denver tap fees for sewer and water (post was from 2012) and a 1/2 acre lot with a SFR going for about $30K in tap fees. Where I am from in the east those fees would be waaaay less. I wonder if a lot that already has water/sewer running to a structure would require fees for each subdivided lot. In other words, one lot subdivided into 4 smaller lots -- would each require a new tap fee? I'll add that question to my list for the county visit I'm planning tomorrow. This whole idea is looking less and less possible (given the asking price for the land/building) but I might as well go through the motions to up my learning curve. And, who knows, maybe a lower offer would be accepted by the seller.

Thanks @J Scott  I appreciate your time. Meanwhile, I just downloaded your new BP diary book, as well. I imagine prices in Denver aren't quite the same as GA and given my limited experience I'll lean toward that upper end.  I was thinking $150+. Land will be about $85K/duplex (~12,500 sq ft) so at 2200 per both units it's $415K. I know older duplexes can range $400k - $500K in the Denver area, not sure how new construction will fare, especially if I decided to hold the properties as rentals. The location has some highway noise but otherwise is surrounded by shopping, light rail, convenient access to the mountains. Other local SFRs on .25 acres (1950s) sold at $285,000ish 2 years ago, some under 1000 sq ft - probably worth mid 350s now. 

I'm looking at a property with an existing structure on 1+ acres west of Denver. Sewer/Water/Gas already available, zoned R-2. The land would accommodate subdividing to create 4 lots permitting a duplex on each one or 3 duplexes + one SFR. The corner lot is flat. What is a realistic price per sq ft for new construction in this area -- especially if 3 identical duplexes were built? And how difficult do folks think it would be to find available builders/contractors to work on the project?

@Travis Sperr You made the following comment in an earlier post:

Can you please clarify what areas you are referring to in CO when you say you can buy a house for less than $100k? Were you talking about the Pueblo area?

Thanks for the clear explanations... makes sense.      @Justin Windham 

@Brian Eastman