Property Overview
This property is a solid 1956-built, 3-bed, 1-bath ranch-style home in the Burns neighborhood of Aurora. This is an area where houses that are simply nice and clean sell for very good prices, and those that are updated in any noticeable way command a premium. Our subject property sits on a larger-than-average lot for the area, measuring 8,581 sq ft. There is a 2-car attached garage plus additional off-street paved parking.
The layout here is convenient: enter the front door into the main living space. The kitchen is to the right, and the dining area is straight ahead. Down the hall to the right is the full bath and one of the bedrooms. Down the hall to the left are the other two bedrooms. All living spaces are on one level. The yard is extremely wide, with a very large backyard. There is a covered patio-type area between the house and the garage that is paved and could function as a carport, providing an additional covered parking spot.
The schools here are Arapahoe 18J, and the taxes for 2023 were $2,175. Our projected ARV is likely conservative, as all of our comparable properties sold in the high 300s to low 400s, and all are smaller than our subject property. Two of the comps are only 2-bed, 1-bath layouts with well under 1,000 sq ft, and the other two are 3/1 layouts but still substantially smaller than our subject. Please take a good look at the comps.
Neighborhood: Burns, Aurora, is a solid neighborhood that is popular because buyers can still get something nice and clean in the mid-400s and lower. That's hard to find in much of the Denver metro area these days. All amenities are within a few miles.
Video Walkthrough
This is a fairly big project for a smallish house. We're budgeting $72K. On the outside, the roof for sure needs to be redone. The yard is a mess. You'll be doing full paint or new siding on the outside. The windows look to be double-pane and may be okay with a good cleaning, but just to be safe, we've budgeted to replace. The biggest issue on the inside is that the house does not have power. There apparently was a power surge recently that essentially fried the electrical system. You're for sure redoing the panel and probably all the switches and outlets, and in the end, the whole house may need a rewire. We're budgeting about 9k to clean up the electrical. The kitchen isn't terrible as-is, and you may choose to keep some of what's there, but we're budgeting for a full, basic kitchen redo. The bath needs a facelift and you'll be doing full paint and flooring inside. We're also assuming you'll be replacing the furnace and water heater. In a nutshell, the house needs everything, unless you decide the windows are functional and can be kept.
Total Budget: $72,312
The finished product will be a property that should get lots of buyer attention in this neighborhood. As a 3 bed, 1 bath layout with 1,156 sq ft, an 8,581 sq ft lot, and a 2 car garage, it has more to offer in terms of size than any of the comps. And with our proposed fix budget, this comp will be far nicer than any of the comps. We have shown 1 active listing that is a flip as a comp. It just listed 4 days ago at $450K, but if that comp goes under contract soon, it should move our projected ARV of $420K up to at least $20K, so keep your fingers crossed. In this area, a nice finished product does not have to be high-end...anything that's redone top to bottom but with basic materials and finishes will put this comp ahead of anything else that has sold in the last 6 months.
Electrical system needs complete redo. Roof needs to be done. Windows may be ok as-is, but I've included replacing in the fix
Closing is scheduled for 09/16/2024.
Close date may be able to be moved a bit earlier.
3 bed, 1 bath, 1,156 sq ft
11858 Del Mar Parkway, Aurora, CO 80010 Zillow
Our first comp is a good example of the typical "nice and clean" house in this area. This one is a 2 bed, 1 bath with 932 sq ft. It sits on a 6098 sq ft lot and has a 2-car detached garage. As we said, this one is nice and clean but nothing special. Compared to our subject, this comp has 1 less bedroom and a lot that's about 2500 sq ft smaller. This comp sold on 5/10/24 for $400,000, but there was a $12,000 concession, so the actual sale price was $388,000. This one nicely supports our projected ARV because the 3rd bedroom our subject has adds significant value, as does its lot that is about 40% larger.
1264 Newark Street, Aurora, CO 80010 Zillow
This comp is one of the most recent closed sales in the area, having just sold on 8/9/24 for $402,000. The house is the most comparable to our subject in terms of size. It's a 3 bed, 1 bath with 1060 sq ft. The main differences? This comp only has a 1-car detached garage and a lot that is only 6403 sq ft. Our subject has the 2 car garage, and a lot that is over 2000 sq ft larger. From a condition standpoint, this comp is nothing special. It's had some updates, but overall it's pretty dated. Also, this one sold with no seller concession, so the net price was $402,000.
990 Nile Street, Aurora, CO 80010 Zillow
This really isn't a great comp given that it's only a 2 bed, 1 bath house with 736 sq ft, so it's 450 sq ft smaller than our subject. However, given the scope of work listed in the listing, it looks like it has to be a flip. Of the comps, this one is the nicest finished product, so it's something like what you'll have if you put our full budget into our subject. This one also does not have a garage, and it sits on a 6,524 sq ft lot. So, our subject has 450 more sq ft, an extra bedroom, a lot that's 2000 sq ft larger, and a 2-car garage. All of those things add up to a substantial value difference. So, why show this comp? Well, because it just sold last month for $379,500. There was a $5,000 concession, but still $374,500 for a 2 bed, 1 bath, with 736 sq ft and only a 1 car garage? It just shows that buyers will pay a premium for something nice and done in this area.
955 Paris Street, Aurora, CO 80010 Zillow
Our 4th comp is an older sale, having happened 5 months ago, but it still provides useful information. This one is a 3 bed, 1 bath layout with 972 sq ft. It has no garage and sits on a 7,187 sq ft lot. Compared to our subject, it's smaller by over 200 sq ft, sits on a lot that's about 1400 sq ft smaller, and it has no garage. This is another example of the "clean and nice" houses that sell for good money in this area. This house is dated, but it is clean. This one sold for $396,500 back on 3/12/24, and there was a $7,500 concession, so the net sale price was $389,000.
890 N Newark Street, Aurora, CO 80010 Zillow
Our last comp is the active listing we mentioned earlier. This comp is a 3 bed, 1 bath with 1,032 sq ft. There is no garage and the lot is 6,189 sq ft. Not sure if this was a flip, but it is a very nice finished product. As we said, it was just listed 4 days ago at $450,000. Keep your fingers crossed that this goes under contract in the next few days. If it does, our ARV on our subject is probably at least 20 - 30k too low and our subject goes from being a nice flip to a home run.
