Investing in Denver, Analyzed Property by Property

Checklist 1 of 7

Define Success

Before we look at any property, we decide what “successful” means to you. Investors measure it in different ways, and the right measure depends on your goals:

Cash flow: what is left each month after expenses and loan payments.
Cap rate: a property’s annual net operating income compared with its price, before financing.
Cash-on-cash return: annual cash flow compared with the cash you put in.
IRR: your annualized return over the whole hold, including the sale and the timing of your cash.
Something else: for example, profit on a resale, equity growth, or a goal of your own.

Tell me which number matters most to you, and we measure every property against it.

Tip It is common to use more than one measure. Decide which one wins if they point in different directions.

Checklist 2 of 7

Financing

Before you start shopping, look into the different ways you could pay for the property. Options include cash, a home equity line of credit (HELOC), or a hard money loan, and each comes with its own costs, timing, and requirements.

Lining up your financing early lets you move quickly when the right property appears. If you would like, I can introduce you to professionals I know and trust.

Tip Talk with a lender or advisor about which option fits your situation before you make an offer.

Checklist 3 of 7

Condition and Renovation Scope

We walk the property and list what needs work now, what can wait, and what could become expensive later.

We take a close look at the changes buyers will be looking for and that will bring you the most ROI on your money.

A renovation scope comes before an offer, not after, so you know what you are really buying.

Tip Get contractor input on the biggest items before you commit to a price.

Checklist 4 of 7

Rent Comparables

For a rental, we look at what similar homes nearby actually rent for.

I pull the rental comparables with you so the rent in your numbers rests on real results.

Tip Use what homes actually leased for rather than asking rents.

Checklist 5 of 7

Resale Comparables

For a renovation and resale, we look at what comparable renovated homes actually sold for.

I pull the sold comparables with you, and we compare not only the sales price but also the upgrades and the condition, inside and out, so your resale number rests on real results.

Tip Use recent closed results rather than asking prices.

Checklist 6 of 7

Holding and Selling Costs

Taxes, insurance, utilities, financing, vacancy, repairs, and the costs of selling all take a share. We list them out so the numbers you analyze are the real ones.

Tip Leave a cushion in your plan. Projects often take longer than expected.

Checklist 7 of 7

Exit Strategy

Before you buy, decide how you would get out: keep the property, sell it, or refinance it.

A property with more than one workable exit is easier to hold if the market shifts.

Tip Know what happens next, from your desired goal to your fall back plans.