#619: The Seller Credit Play That Hit 5.625% in Denver

The Denver multifamily market just handed investors something they haven’t seen in a decade. Soft demand, motivated sellers, and seller credits big enough to buy your rate down into the fives. Right now, deals that didn’t pencil two years ago are starting to look like real opportunities for both house hackers and landlords. Host Chris Lopez sits down with Jeff White, Envision Advisors broker and active investor who just closed on his 10th house hack, plus Lender Troy Howell from Nova Home Loans. Jeff bought down his most recent purchase to 5.625% using seller credits, and the three break down exactly how he did it. The trio walks through three live Front Range deals — a Lakewood side-by-side duplex at $769K, an Aurora triplex at $625K, and a Wheat Ridge duplex at $775K. Each one gets analyzed through two lenses. First as a house hacker putting 5% down. Then as an investor at 25% down. The Lakewood duplex can house hack for $133 a month and cash flow $1,000 a month in year two. The Aurora triplex starts break-even and hits $1,000 a month after a few rent adjustments and one Section 8 conversion. Jeff and Troy also unpack the rules of thumb that matter right now. The 2% cash-on-cash benchmark for Denver multifamily. The $32K cost of waiting three years to buy. Why a soft market with higher rates is actually an investor’s best friend. And the property manager debate every new landlord wrestles with. In this episode we cover: How to house hack a Lakewood duplex for $133 a month and cash flow $1K/month in year two Why side-by-side duplexes rent for more than up-down layouts and attract better tenants The $7K to $8K basement bedroom add that changes the deal math How Jeff bought his rate down to 5.625% using seller credits in a soft market Why renewing leases before listing kills your buyer pool and sale price The 2% cash-on-cash benchmark every Denver multifamily investor should know The $32K cost of waiting three years for “perfect” market conditions Whether you’re looking at your first house hack or your tenth optimization play, this episode shows you exactly how the math works on real Denver deals today. Watch the Youtube Video https://youtu.be/Ml7-xcAxyeA Timestamps 00:00 – Episode preview and what’s ahead  01:47 – Lakewood duplex breakdown at $769K  04:43 – House hacking for $133/month with four roommates 07:20 – Investor lens on the Lakewood duplex  10:19 – Aurora triplex and why it’s investor-only  13:45 – Year two optimization turns break-even into cash flow 16:32 – Wheat Ridge duplex near the Highlands  21:05- Q1 vs Q2 market shift and extended winter  24:40 – The $32K cost of waiting three years  31:18 – Why a soft market favors investors  33:56 – Buying down the rate to 5.625% with seller credits  40:13 – Self-managing first, hiring a PM later  45:09 – Why “perfect” deals don’t exist Links in Podcast Troy Howell: [email protected] LinkedIn: Troy Howell Website: https://www.novahomeloans.com/loan-officer/troy-howell/ Jeff White: [email protected] Get on the Denver multifamily deals list Download the webinar slide deck Property Llama Who is Nova Home Loans? For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today! NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO