Property Overview
This property is a simple 3 bed, 1 bath ranch layout in the Harvey Park neighborhood. This 1949-built property was originally a 2/1 layout, but at some point the garage was converted to a large 3rd bedroom with a walk-in closet. The total living space is 938 sq ft. The house sits on a large 7,260 sq ft lot. There is no garage, but there is a concrete pad that provides some off-street parking. The layout of the house is typical of this style, enter the front door into the living room and to the right is the dining area, behind that is the kitchen. Down the hall to the left are the 2 original bedrooms and the full bath. The garage conversion created a very large bedroom with a big walk-in closet...this space is accessed from the living room. In looking through the comps, there is still lots of sale activity happening in Harvey Park. Nicely updated homes that are priced correctly, especially those priced under 500k, still seem to be selling well and going under contract fairly quickly. This house needs quite a bit of work, but the buy price here should give you a very nice profit margin on this project. The schools here are Denver County 1 and the taxes for 2023 were $1,767.
Neighborhood: Harvey Park is a very desirable area of south Denver that is appealing because of its convenient location and because buyers can still get into a nice house priced in the 400s...something that's becoming harder and harder to do in the Denver metro area. All of the amenities...restaurants, shopping, etc ...on Federal and Sheridan are nearby.
Video Walkthrough
This is a fairly big project as our projected 49k fix budget indicates. On the exterior, we are budgeting for a roof, new windows and new paint or siding. The backyard is an overgrown mess, so that part is more than just basic clean-up. The front porch concrete should be replaced. If you feel adding a garage would create enough additional value to justify the cost to do it, there looks to be plenty of room to the right of the house for a 1-car, or a driveway to the backyard to add a 2-car. The large lot size certainly allows a garage without sacrificing too much yard to do it. Inside, the house needs a full reno. The kitchen isn't terrible, but we're budgeting for a full redo. Same with the bath. They look to be hardwoods under all the carpet, so you'll either be refinishing those or putting new flooring over the top. The interior will need a full paint job. The seller states the furnace and water heater are both about 5 years old. The house does not have central A/C but you certainly should be able to add it if you choose. One other project that you'll probably want to do...right now, the washer/dryer is in a closet in the bedroom directly behind the kitchen wall. It probably makes sense to open up that closest to the kitchen and add a stacked washer/dryer all the way on the back left wall of the kitchen. Doing it that way should result in minimal moving of electric and plumbing.
Total Budget: $63,000
The finished product will be a fully updated 3 bed, 1 bath ranch layout with 938 total sq ft. If you look at the flips that have happened, the ideal finished product has a fresh modern look with nice design elements. That can be accomplished using basic, off-the-shelf materials and finishes.
Lot is large for the neighborhood. A garage could easily be added on the right side of the house if someone wanted to boost ARV
Closing is scheduled for 11/06/2024.
3 bed, 1 bath, 938 sq ft
2270 S King Street, Denver, CO 80219 Zillow
Our first comp is the most similar to our subject in terms of size and layout. This one is a 3 bed, 1 bath with 952 sq ft. Compared to our subject, bed and bath count is the same and total square footage is nearly the same. At some point, it had a garage conversion done, and like our subject there is no garage. The biggest difference is this comp sits on a 6080 sq ft lot, so our subject's lot is almost 1200 sq ft larger. This house really looks like someone did a basic flip on it, but we can't find any record of a recent pre-flip sale. That said, it's a nice, clean house overall. This one sold back on 6/7/24 for $475,000. There was a 16.5k concession, so the net sale price was $458,500. It went U/C after only 11 DOM.
2140 S Hooker Way, Denver, CO 80219 Zillow
Our next comp is a really nice flip and is a good example of the type of finished product that sells for a premium in Harvey Park. This one is much smaller than our subject, as it is only a 2 bed, 1 bath layout and it only has 710 sq ft. This one does not have a garage and the lot is the smaller 6080 sq ft one that many homes in this area have. Our subject is a 3/1/938 with a 7260 sq ft lot. Whoever did this flip did a really nice job. They added some really nice, modern design touches that didn't cost a bunch of money but which created a finished product that buyers obviously were attracted to. The house went under contract in 2 days and sold for $434,900 on 4/15/24. That was the list price and there were no seller concessions paid. Pre flip, the investor who did the project paid $325,000 for the property.
1811 S Knox Court, Denver, CO 80219 Zillow
We wanted to show you this next comp because it is none of the most recent properties to go under contract in Harvey Park. This one is also a flip, so that makes it very useful as well. Like the 2nd comp, this one is also significantly smaller than our subject. This one is a 2 bed, 1 bath with 755 sq ft. This one does have a larger lot like our subject, and this one has a 1 car garage. What's interesting is the house itself is really nicely done, but the yard is still a complete mess. Nonetheless, this one went under contract at a list price of $430,000 after only 6 days on the market.
