Park Hill Flats

Park Hill Flats – SOLD

The property is located in the South Park Hill neighborhood of Denver adjacent to Mayfair.

It was purchased in June of 2013 for $1,450,000 ($500,000 in equity and a $1,087,500 loan).

As of purchase total income was $10,620 per month. 2 bedroom units rented for $825 monthly and 1 bedroom units for $700.

In the first 6 months Mountain Capital Group managed to re-tenant 11 out of 13 units. Many units had to be totally painted, the hardwood floors screened and resealed due to the prior tenants’ lack of respect for the property.  All units contained washer and dryer hookups, but the landlord did not supply the units.

Mountain Capital supplied new stacked washers and dryers in every unit. Since the building did not have air conditioning; air conditioning was added in all units, as well as silver aluminum 2” blinds in every unit.

The building is individually metered for electricity, but not gas or water. Mountain Capital instituted charging tenants for a portion of their utilities (RUBS) thus increased income by an additional $575 monthly. Paying the reimbursement fee made tenants more aware of their utility consumption.

Mountain Capital provided free WiFi and installed commercial telephone entry system which was programmed to tenants’ phone (usually their cellphone).

Parking was upgraded and income from this source generated to $250 per month as of date of sale, the new ownership also added an outdoor deck area and a dog run for tenants.

We also implemented monthly pet rent of $25 per month per pet, including a non refundable pet deposit of $250 per pet.

Total capital improvements during ownership were approximately $105,000. In addition all these improvements member/partners were paid a 6% preferred return during the ownership period.

.As of the sale date monthly rental income was $15,000 including pet rent, parking and RUBS.

The property sold December 1, 2014 for $2,200,000 and after all closing expenses and commissions $1,005,275 was returned to member partners.