1440 Lima St Aurora, CO 80010

Property Details for 1440 Lima St

Year built

1956

Lot size

0.20 lot acres

Property size

4,000 SF

Property type

Multifamily properties

Description

This Aurora, CO multifamily property presents a compelling investment opportunity. The 4,000 square foot building currently houses five units: four one-bedroom units and one two-bedroom unit. All units are currently rented on month-to-month verbal leases, except for one with a lease expiring at the end of February. The property sits on a 0.2-acre lot and is currently under-rented at $1300 per unit. Significant upside potential exists by maximizing the currently unutilized basement space. This space could be incorporated into the existing two-bedroom unit to create a four-bedroom unit, or developed into a completely separate sixth unit, given its independent entrance. Converting to Section 8 housing offers substantial rental increases, with Aurora's Section 8 allowances at $1800 per month for a one-bedroom unit and $3225 for a four-bedroom unit. At the current $1,000,000 asking price, the property boasts a cap rate exceeding 6%. Optimizing the basement space could elevate the cap rate to approximately 9.7% with a 30% down payment, even considering property management fees and utility costs associated with Section 8 tenants. Furthermore, the adjacent duplex at 1408 Lima Street, also available for purchase at $480,000, presents an additional investment opportunity. This duplex comprises two 2-bedroom, 1-bathroom units (requiring minor adjustments to restore to original configuration). The combined lot size of both properties totals 16,500 square feet, offering potential for future development, with the City of Aurora expressing interest in the alley between the properties for potential rezoning and apartment building construction.