Property Overview
ACCESS DATE & TIME : July 09, 2024, 11:00AM
This property is a fabulous flip opportunity in the red-hot Lake Arbor area of Arvada with some very nice profit potential. This area is interesting because the really nice flips that are priced correctly and have sold recently have been selling fast, with many going well over asking price. Our subject house is currently a 3 beds, 3 bath tri-level with 2,085 sq ft. It sits on a nice-sized 9,278 sq ft lot and has an attached 2 car garage. The layout is typical for this type of home. The main level has the large living room, dining room and kitchen spaces. Upstairs is the master bed with ensuite, plus 2 additional bedrooms and another full bath. The garden level is where you access the garage, and it also has the laundry and utility rooms. The basement level is currently just a big open family room space with a 1/2 bath. You have the option to leave this as a 3/3, or consider using some of the basement space to create a 4th bedroom. With over 600 sq ft down there, it's got more than enough room to turn this into a 4/3. The yard is large and fully fenced and there is a large additional paved parking pad to the left of the garage. The schools here are the highly rated Jeffco R-1 and the taxes for 2023 were $3,115.
Neighborhood : Lake Arbor is an incredibly popular area in central Arvada that is close to all amenities. Lake Arbor park is just a few blocks away.
Video Walkthrough
This is a big project, as our projected $97K fix budget would indicate. On the outside, the roof is 10 years old...it may be ok but we're budgeting to replace. You'll be doing all new windows, 2 new garage doors, and probably a couple of entry doors. The yard needs work and there is some concrete work to do in places. We're also budgeting for full exterior paint. On the inside, the house needs a full cosmetic update...new kitchen, baths, paint and flooring. The furnace and water heater should be good. As for the structural...there is settling on the garden level, and that is what's causing the cracks you can see on the main level. The owner had Groundworks out in December to assess the situation, and their bid back then was only about $2,600 to fix everything. Added to that would be a cost to remove and then reinstall the furnace and water heater...so we're figuring with some inflation of the Groundworks bid plus plumber and HVAC hours, it's about a $6,000 project now (...we'll provide a copy of that old Groundworks bid for those who want to see it). What to do in the basement is another question? As-is, the house is a 3/3. One of our comps, and it's nothing special, is a 3/3 that recently sold for 661. We don't think making this a 4/3 gets ARV to $700K, but it certainly could push it up into the very high 600s. If you did add the 4th bed in the basement, then reconfiguring the bathroom down there to add a shower makes sense. There is room to take a chunk of the closet that's right behind the existing bath to expand the footprint beyond the current 1/2 bath.
Total Budget: $97,100
The finished product will be either a 3/3 or 4/3 with 2,085 sq ft. If you look at the comps, you'll see multiple flips that have sold recently. You'll also see that the ones where the investors made smart design choices to amp up the quality and eye-appeal of the finished products did very well. You'll also see that stuff that is nice and clean but not overly updated is selling for really good money as well. Ideally, the finished product here will look more like those "wow" flips to maximize ARV.
We have a structural bid from Groundworks that was done in December to address the settling on the garden/garage level. Surprisingly, it was only about $2,600, plus the cost of removing and reinstalling the furnace and water heater.
Closing is scheduled for 07/25/2024.
8234 Pierce Court, Arvada, CO 80003 Zillow
Our first comp is nearly identical in size to our subject...it's a 3/3/2032 versus our subject at 3/3/2085. Both have 2 car garages. This comp has a smaller lot, 7,841 sq ft versus our subject at 9,278...so that's a significant difference. From a condition standpoint, this comp is really clean and well-kept, but there is just nothing special about the house. It's had some updates, but the kitchen and 2 of the baths are dated. That said, this comp sold on 4/30/24 for $661,500. It went under contract in 3 days while listed at $600,000, so it sold for $61,500 over ask. There were no concessions to the buyer.
8203 Otis Court, Arvada, CO 80003 Zillow
Our next comp is also a 3 bed, 3 bath layout, however this one is significantly smaller than our subject at only 1663 sq ft. This one does have a 2-car garage and sits on a 8483 sq ft lot. So, the house is about 400 sq ft smaller than our subject, and the lot is about 800 sq ft smaller. Like the first comp, this house is really clean and taken care of and it's had some nice updates. It's nothing special, but it's a nice house. This one sold for $625,000 about a month ago on 5/16/24...but remember, it's only 1,663 sq ft. There was a small $2500 concession to the buyer.
7454 W 83rd Avenue, Arvada, CO 80003 Zillow
We wanted to include this comp because it gives you an idea of the ARV boost of adding the 4th bed to our subject. This comp is a 4 bed, 3 bath with 2,399 sq ft. It's got a 2-car garage and an 11,163 sq ft lot. So, yes, it is larger than our subject by 300 sq ft. But, why it provides useful info is that a) it's a really nice house with lots of really nice updates and b) it's a 4 bed. This one is currently under contract while listed at $735,000 and it went U/C after 4 days on market. Because of the size difference, we know our subject probably doesn't get over 700 as a 4 bed, but maybe it gets close. That's an interesting value proposition...expand the bath in the basement and add the bedroom...maybe that adds 5 grand to the reno budget but creates an extra 15 - 25 grand in ARV? It's an option worth considering.
