FAQ
Most frequent questions and answers
Denver property taxes are quite affordable compared to other states. It will generally impact your cash flow, but not as significantly as it would in states like Illinois, Texas, California, etc. with higher property taxes.
Aurora, Lakewood
The average cap rate is sitting right around 5% in the Denver-Metro as of Q4 2025, so a good cap rate will range anywhere from 6-8% on average.
Now is a great time to purchase multifamily buildings. The values have gone down in the past few years, and there are many sellers desperate to get rid of their buildings. With that being said, you can come across a great deal and most sellers are willing to negotiate with you to offload.
The commercial multifamily market isn’t like the residential market, in which there are better times of the year for selling. If it’s a good deal, it will sell. Investors are always looking for good deals. If you’re extremely motivated, sometimes at the end of the year is a good time because businesses and investors are looking to reposition before the end of the fiscal year for tax advantages and cost segregation.
It can take as little as 30 days to close on a multifamily building, with most transactions taking 60-90 days once going under contract.
We do an in depth analysis when pricing multifamily buildings. We look at comparable sold properties in the area, and determine the price based on the current income of the asset, the condition of the building, any extra amenities, location, etc.
It truly depends on the situation you’re in. Is your rate expiring, are you over-leveraged on your debt service, are you struggling with vacancy issues, do you want to do a 1031 exchange into a better class building? All of these questions matter in deciding whether to hold or sell
Typically, you will need 2 years of operational statements (P&Ls), current T12, current rent roll, 2 years of proof of insurance and any claims made on the building, 2 years of tax bills, any capital expenditures on the building, a survey/ILC if in possession
We typically suggest to hire a multifamily property manager
Typically about 7-10% of rental income
Making the actual units nicer to increase rents, repainting the exterior, redoing landscaping to add to the curb appeal, adding in a laundry room for additional income, etc.
About 5-8% vacancy is considered healthy right now in the Denver Metro. The average vacancy in the area is around 11%.
A property that needs any work/renovations to increase rents, a property with higher vacancy that needs stabilized, etc.
Absolutely. Especially right now, as rates are expiring and going up since owners bought 5-6 years ago in the lower interest rate timeframe. Many sellers are distressed and are approaching having to negotiate a short-sale with the bank.
Yes! Any time we get a listing, we always pitch the deal off market to our investor hot list first. You will have the chance to run the numbers and tour the building before it hits the market.
Yes. Currently we are offering free BOVs to our clients. We normally charge $650 for a BOV.