613 North Street Boulder, CO
Peter and Marisa bought the property at 613 North Street in Boulder Colorado in 2004. They have a daughter in Boulder and had planned on moving to Boulder to be close to her. They did a 1031 exchange on their investment property in Hawaii to buy North Street. At that time they were living in Costa Rica. The house was perfect for them because of the great location in Boulder and the additional income from the back unit. In the meantime they changed their plans and decided to live in a town in Mexico instead. That is why they are selling.
The tenants in the house are a married couple and they pay $1,175. They are exceptional tenants and would probably stay in the property for quite a while. Their lease ends at the end of December. I advised Peter to increase the rents at the end of last year. He renewed at $1,175 because they have been such good renters. I think the front unit could bring $1,350 to $1,450 a month.
The back unit is rented to 3 people. I know the woman is out of school and I think the guys are working and advanced students. Not so sure about that. They have been very good tenants and they pay $1,425. Their lease is up at the end of September. The property manager thinks that the back unit could bring $1,450. The property could have been rented at better times of the year and when he bought the property in 04 late in the year he panicked and put Eleni and Todd in at a deal for $1,175.
The property rents easily because of its location west of 9th between Mapleton Hill and North Boulder Park.
The property was built when it was zoned for Duplex/Triplex therefore it is legal. The zoning is now Single family so it is non-conforming. Should the structure be removed it must be replaced with a single family home. Because the lot is 6,000 sq ft the owner may build an Owner´s Accessory Unit with 500 sq ft of living space most likely over a garage of the same size. That is why the alley access is so appealing. The house or the AOU can be rented as long as one is occupied by the Owner. The new zoning, lot size and location make it a prime property for building a new home.