Just Sold: 4234 Eliot St, Denver 80211
Asking Price: $575,000
Sales Price: $500,000 (I represented the Buyer)
My latest Just Sold was a Denver income property, a tri-plex, in Northwest Highlands. Normally, you’d guess a cash paying investor would be the one to receive a huge discount on the sales price. Not this transaction though, only 3.5% down. My client was a primary residence Buyer who secured an FHA 203k loan. He’ll live in one of the units, rent the other two units out, and use the 203k loan to remodel/update the building.
The appraisal process on this transaction was a unique one: not only did the building have to appraise from a value standpoint, but it also had to appraise from an income position. The appraiser took market rents for all three units, subtracted a 10% vacancy, then the net rental amount had to be equal or greater than the mortgage total. It was a tricky process, but one I was able to take on confidently knowing the rental market well.
Lastly, as if the Buyer didn’t receive enough benefits to this purchase already, I was able to get the client a sewer line repair and a new electrical box (old Federal Pacific Electrical/FPE panels are fire hazards) installed prior to closing.
In today’s challenging market (super low inventory levels) 2-4 unit income properties are great options for owner occupants. As always, I’m happy to sit down and discuss how you, or someone you know, could take advantage of similar situations.