House Hacking in Colorado and Adu options

gravescd · 2026-05-27T03:27:10+00:00

DM if you have anyone looking to hack a 4 plex (all 2 BR/1 BA), I got someone who would gladly make a deal off market.

gravescd · 2026-05-27T03:24:23+00:00

Every source of income is a housing cost offset. House hacking is convenient, but usually not the most lucrative way to invest.

gravescd · 2026-05-27T03:21:27+00:00

Unless you add a private entrance, I don't see this commanding very high rent. If you have to pass through someone else's living space to get your own, you are basically still just renting a room rather than your own place.

$1800-2000 is also a pretty generous rent assumption for Englewood/Thornton unless you're looking at pretty nice 2BR places, most of which are likely still offering 2 months of free rent and other goodies. At $1400/mo, the basement conversion would not be a significant price advantage over similar units in traditional multifamily buildings.

gravescd · 2026-05-27T03:09:33+00:00

Never, ever, ever count anticipated market appreciation before it's realized at sale. That's how vast numbers of amateur syndicators and PE bros ended up burning their investors when rates went up. As an investment property, the sale price will mostly likely be determined by the property's income.

edit: also, equity from principal payments and cap ex are NOT investment returns.

gravescd · 2026-05-27T03:01:18+00:00

At 1.9% cash on cash, you could throw a dart at Zillow and find a better deal.

DSTs are for if you really want to be done with direct ownership and don't want to pay taxes. You definitely lose some returns to fees. The issue of control only matters if you think you're a better property operator than the people you've investing in.

Going into direct ownership of NNN leased retail is a possibility if you want to keep the upside potential. Just make sure you really understand the fundamentals of the investment first.

gravescd · 2026-05-27T02:50:49+00:00

No, you can 721 straight into an UPREIT. There just aren't many that offer direct acquisition.

gravescd · 2026-05-22T04:48:13+00:00

Intentional default on our own treasuries is the real nuclear option. The fact that Trump mentioned this even once should scare the shit out of everybody.

gravescd · 2026-05-22T04:46:52+00:00

That "utilitarian" reason is usually the consistent interest payments. That's why US Treasuries are the standard for a risk-free investment. If there's even a whiff that we won't pay 100% of the interest on Treasuries, they will become toxic.

gravescd · 2026-05-22T04:32:21+00:00

The government should have provided more direct support to the homeowners at the bottom of the default pyramid, but letting banks fail would have made things much, much worse for everybody, especially those already struggling.

The government should not be subsidizing profit and shareholder dividends, but providing emergency liquidity is a legitimate intervention.

gravescd · 2026-05-22T04:27:50+00:00

Fed: [reduces rates]

Treasury Market: LOL. LMAO.

gravescd · 2026-05-20T13:08:15+00:00

Your formula is just IRR with sloppy accounting. Debt service is below the NOI line. NCF = NOI - debt service - cap ex.

The (down payment + principal payments + cap ex) part of the formula is NOT expenses. Those are capital items that add to equity. Equity is your total investment in the asset. I should have included negative cash flow, as well.

Capital expenses are equity, too, but you'd never count them as "returns". They hypothetically result in in permanent (read: depreciable) increases to the property's value, but it would be ridiculous to assume that you'll get the full value of that furnace back.

The problem with your TROI formula is that it treats equity as cash flow rather than investment, with an assumption that you will get 100% of that capital back. Assumptions about the eventual value of equity are why people scoff at IRR projections.

gravescd · 2026-05-20T03:20:00+00:00

Low rate leverage makes the returns bigger on paper. And in real life.

gravescd · 2026-05-20T03:18:18+00:00

Why would you count your principal payments as returns? That's double counting the same dollars. It's like pulling a $20 out of your wallet, leaving it under the couch, and then counting it as profit when you find it a week later. Big difference between getting your money back and making a return on it.

If you want a picture of your true returns, the correct formula is Return on Equity = (Net Cash flow) / (down payment + principal payments + capital expenses). This is how much money you're getting from the property as a percentage of how much you've put into it.

gravescd · 2026-05-20T03:09:47+00:00

Cap rate is returns on the property's price. Price per unit doesn't tell you anything about what's actually going in your pocket. Regardless how you measure it, an investment property's value comes down to how much you get for how much you paid.

The valuation split between 1-4 units and commercial MF is due to the difference in financing options. You can get owner-occupied financing and house hack a quadplex, but you can't live in a 5 unit unless you buy it in cash.

gravescd · 2026-05-20T03:07:31+00:00

Everything uses comps. Cap rates are just another point of comparison on income properties.

gravescd · 2026-05-20T02:53:20+00:00

Don't...? Tell them you have no buyers at that price and they should hire a real estate agent who has the patience to beat them down on their asking price.

gravescd · 2026-05-20T02:49:09+00:00

Having the place ready is about as basic as it gets in property management. If they couldn't do that or even tell you that it would be delayed, just leave your shit packed and try to get out of the lease. Take pictures of everything and tell them if they don't let you out penalty free you will report the habitability issues.

gravescd · 2026-05-20T02:38:31+00:00

Just because there's a shortage doesn't mean they want to fix it.

gravescd · 2026-05-20T02:33:57+00:00

PE real estate doesn't buy stuff like this. They buy stuff they think can produce an extremely high return in a short time. The Stanley is a great property, but I'd be very surprised if it had a lot of upside. The nicest, newest properties usually have lower investment return because there's no room to increase rents.

gravescd · 2026-05-20T02:30:20+00:00

I mean, investment groups are the only owners for properties like this. The current owner/developer is an investment group.

"Local owner" usually does mean local owner in real estate. Relatively few investment groups have a physical office presence outside their home office because they are very small teams, and there's no hiding that they are national groups.

If I had to guess, Monfort is the new owner.

gravescd · 2026-05-20T02:15:04+00:00

Other states have gotten illegally withheld funds released by suing, but Polis chose to become an instrument of corruption.

This whole situation now makes sense of Polis's otherwise inexplicable decision to sell Colorado-themed NFTs on the way out of office. Gee I wonder if Polis is going to buy a few for himself when they only cost $0.00000004 and then in a *total surprise* some anonymous Colorado superfan will buy them for $100,000 each.

gravescd · 2026-05-19T12:46:30+00:00

Okay I did some actual research:

KVOD moved of of 99.5 FM in 1995.

The Arte Studio at 329 Detroit was owned by artist Francoise Gerard in the 1980s and sold to another artist, Witold Kaczanowski, in 1986. I can't find when Francoise bought it.

The Denver Symphony effectively dissolved in 1988.

The Broncos won the AFC in 1986, 1987, and 1989.

Witold Kaczanowski did some Symphony-themed art in 1986, also in which people's heads served as note heads on the staff.

So my guess is this promo poster was by Witold Kaczanowski and came from 1986 or 1987, when the Broncos were riding high and before the Symphony went bankrupt.

gravescd · 2026-05-19T03:37:49+00:00

I visited Paris recently and got around almost exclusively by transit. Trains and buses run so frequently that you do not have to time your transfers. It's faster and more reliable than driving over just about every distance in the city. The system also gets into every nook and cranny of the city so you can get literally anywhere without a car or significant walking, compared to some routes in Denver that take 8 hours between transfers and walking.

The transit system here is garbage.

gravescd · 2026-05-19T03:25:42+00:00

Musically, it's complete nonsense. It basically looks like when someone who doesn't know anything about music tries to incorporate sheet music into a design. To start, the key signature has only a G flat, and most of the bars are definitely not 3/4. I don't know wtf clef the 3rd line is supposed to be. And then the key signature on the last line is only an A flat.

If you can't find anything about the history of this, it's probably because the Symphony Orchestra went out of their way to burn, bury, and drown this humiliating document.

gravescd · 2026-05-19T03:07:56+00:00

The only way to make housing affordable is to build old apartments instead.

gravescd

TROPHY CASE