Case Study : Residential Multi-Family Investment in Denver  

Not all investments have to be house hacks or done with creative financing. Once you get in your stride you can acquire more properties annually by reinvesting your earnings from your other investments. That’s how this deal was done. It was a joint venture between me (Craig here) and a partner of The FI Team.  

The House 

We purchased a side-by-side duplex in the Slone’s Lake area between Denver and Lakewood in 2020. What we loved about the property is it was already set up for our strategy of a passive long-term rental. There were separate entrances, separate utilities and located in a desirable, easy to rent neighborhood. But even better, we were able to see the potential of unused square footage.  

The units were 2 bed/ 1 bath when we bought them, and after a renovation after the purchase both units were 3 bed / 2.5 bath.  

The Numbers 

Costs 

Purchase Price  $630,000  
Down Payment (including closing costs)  $126,000  
Rehab  $92,000  
Estimated ARV    $800,000 

We closed on the property in 2020 with an interest rate of 2.25%. I was able to buy down our interest rate with my commission.  

Income & Expenses 

Rental Income  $4,175 
PITI  $2,100  
Reserves  $800  
Property Management?  $292 

Cashflow & Appreciation  

Cash Flow  $983  
Principal Pay Down  $15,000  
Appreciation  $170,000 

Cash on Cash Return 5.41% 

Net Worth ROI 90.27% 

The two units are both long-term rentals being managed by a property management company. Because we renovated upfront to ensure the units were in solid shape and have a management company, this is truly a passive investment for me.  

Are you in your investment stride yet? Looking for a truly passive rental? Hit me up, I’d love to help!  

 

Get off the Sidelines this Year!

Register for The House Hacker’s Intensive Workshop

Coming to Denver – April  5th, 6th, & 7th