Property Overview
This property is a very solid brick end-unit of a 4-plex in Virginia Village, a great, up and coming area that is just Southeast of Cherry Creek and Wash Park. As we go through the details, you'll see why this deal makes a lot of sense. The complex we're in is called Asbury Park. It was built in the early 1960's. There are 4 buildings total, each with 4 units for a total of 16 units in the complex. And these do not turn over. Only 1 has sold in the last 3 years. Our unit is an end unit that is 2 beds, 1 bath and 828 sq ft. All of the units have a 1-car detached garage. The garage buildings are at the south end of the complex. Our garage is also the end unit. The unit layout is nice and easy...enter the front door to the living room space. Behind that is the dining and kitchen. To the left are the 2 beds and full bath. There is a nice backyard/patio space that isn't huge but is fully fenced and nicely private. The complex is really clean and very nice...the buildings are red brick and there is a nice walkway space with large trees between the buildings. This project is a quick and easy cosmetic flip and has some very nice upside. The reality is there really aren't many townhouse units in this area. There are a bunch of new buildings going up 1 block to the east that are larger but which are priced in the mid 500s to the mid 700s. So, developers have come to this area and are putting up high-end condos and townhouses. For any buyer who wants to get into this area at a price in the 300s, now is the time because the trend of higher-end builds being done is going to continue and it is likely that in a couple years, there won't be anything in this area priced under 500. The schools here are Denver County 1 and the taxes for 2023 are $1,995.
Video Walkthrough
We're budgeting $25K for this renovation, and we would suggest using it. Here is the comparison. There are no existing comps that are townhouses or 4-plexes like our subject in this area. The new builds that are 1 block to the east are selling in the mid 500s to the mid 700s. You are offering a fresh and fully updated unit in a really nice brick 4-plex building, with a garage and a private backyard space, for under $400K. To get there, it needs a full interior reno...kitchen, bath, paint, floors. The patio/yard space is overgrown and needs work, but it's not large. We're budgeting about $20K for the interior work and 5k for the patio and whatever else. The play here is that you'll have a completely updated unit in a really nice complex that's priced 150 grand under anything else that's fresh and clean and nice in the heart of Virginia Village. The best, and quite frankly, only comp sold last year for $350K and is now on the market at 385. It's clean but nothing special.
Total Budget: $25,000
The finished product will be a like-new 2 bed, 1 bath unit in a 4-plex with 828 sq ft. The best comp is the active that is priced at $385K and which is nice, but nothing special. That same unit did actually sell for $350K last year. Using the $25K fix budget, our subject can be as clean and hip and modern and be priced at least 150 grand under the new builds. That's attractive for the person who wants to be in this neighborhood but can't afford a 550+ grand new build that's 1 block away.
Nice brick buildings.
Closing is scheduled for 07/02/2024.
5184 E Asbury Avenue, Denver, CO 80222 Zillow
This is the one and only comp is this complex. In fact, it's really the one and only comp period. This comp is both a sold comp and an active comp, but it seemed silly to list it twice. This comp sold back in August of 2023 for $350,000, and it's now back on the market, listed 3 days ago, for $385,000. It's not a flip or anything like that...it's likely just some lifestyle change, job or whatever, that is prompting these folks to sell. The condition of the unit is unchanged in the last 10 months...it's very nice and clean but nothing special. We also think that the $385K asking price is a bit steep, but let's pray that this thing goes under contract this week. If it does, our projected ARV for our subject is way too low. We do know that this unit did sell for $350K last August. Again, it's clean but nothing special. We're assuming that values are up some since then (...they are) and that your finished product will be far nicer than this unit that sold at 350 back in August...so our $375K projected ARV makes sense and leaves plenty of room for a surprise to the upside...with a really nice finished product.
2026 S Holly Street Unit 2, Denver, CO 80222 Zillow
Yes, we know this isn't really a comp due to pretty much everything. But, it highlights what we are saying. This unit is in the new-build complex that is 1 block to the east of our subject. This is the complex where prices start in the mid-500s and go into the mid 700s. Yes, those are much bigger, but this one is only a 2 bed, 3 bath with 1,238 sq ft. The point here isn't how this unit compares to our subject...what the point really is comes down to anyone wanting to be in this neighborhood in a property that's new or like new has to spend 550+. Our subject is projected at $375K ARV, which is conservative. In any case, this comp sold for $575,000 on 3/4/24. So, we're projecting a 375 ARV on our subject.
