Great cash flow, 14% ROI with 20% down, Renovation of the entire area greatly increasing potential profits. Check this one out!!

1. Analysis of Investment Property in Colorado
Springs Located on Boarder of City Improvement
Area
Aneissa Van Metre
719-896-6666

2. Investment Property in Colorado Springs
• Victorian house converted to 5 studio units with positive cash flow
• Colorado Springs improvement area involving the Broadmoor and
El Pomar Foundation borders property
Future potential of the property includes single family residence, 4
•
units, 5 units or sell to commercial developer at a substantial profit
within 6 to 18 months while all expenses are covered through
rents.
• Excellent rental history.
• For financing purposes, can be converted to 4 units- 3 studio and 1
two bedroom
Lot well maintained with pond water feature and nice landscaping
•
• Structure in excellent shape.
• Excellent parking for all tenants
• Appraised $20,000 over the contract price
Current positive cash flow plus appraisal indicated rents are low for
•
the area
• Current appraisal, Improvement Location Certificate, Property
Insurance, Flood Insurance already completed

3. • Full disclosure of property address when qualified investor verified.

4. Based on 30yr. FHA mortgage at 6.5% interest with 3% down payment.
Rents Expenses per month
Unit A: $510 Loan Principle and Interest $202k: $1244.32
Unit B: $495 Flood Insurance: $159.83
Unit C: $475 Insurance: $112.50
Unit D: $560 Utilities: $366.66
Unit E: Vacant $550 Taxes: $79.08
Total Rents: $2590 Mortgage Insurance: $98
Total Expenses: $2060.39
Cash flow per month: $529.61
Lender: Kevin Guttman- 719-302-5820 with all loan details.

5. Based on 30yr commercial loan at 7% interest with a 20% down payment.
Rents Expenses per month
Unit A: $510 Loan Principle and Interest $168k: $1,117.71
Unit B: $495 Flood Insurance: $159.83
Unit C: $475 Insurance: $112.50
Unit D: $560 Utilities: $366.66
Unit E: Vacant $550 Taxes: $79.08
Total Rents: $2590 Mortgage Insurance: $50
Property management: $200
Total Expenses: $2085.78
Cash flow per month: $504.22 and $6050.64 per year
$42,000 cash invested equals 14.4% ROI per year.

6. Articles regarding Colorado Springs Redevelopment Plan

7. Colorado Springs Indepentant
MAY 8, 2008
Rags to ... Rodeo Drive?
Legal wrangling, crackdowns and a lot of dreams seem to be shaping South Nevada
By J. ADRIAN STANLEY
Colorado Springs police, frequent visitors to the Cheyenne Motel, may assist in ensuring that its
days are numbered.
L'Aura Montgomery
The big white pickup makes a sharp right off East Navajo Street, onto a dusty dirt alley.
Here, just behind the cheap motels of South Nevada Avenue, the chaos of street life dissipates.
Cheyenne Run meets Cheyenne Creek, forming a grassy, green peninsula. Big trees root into the
lush creekside. An older home and swingset are nestled here. Stone walls partially line the creek,
giving it a quaint feel.
quot;This is one of those deals where it's kind of like a legacy development,quot; developer Mark Morley
says.
Morley happily tromps through the grounds. He envisions that one day the peninsula will be
parkland, with an outdoor amphitheater that shows movies. On either side of the creek, four- to
six-story buildings will rise, with ground-floor retail and lofts above. The stone walls will continue
down the creek, and people will stroll on new sidewalks.
Morley and partner Sam Guadagnoli only have a few more properties to buy before they can get
started. Morley thinks that two years after they have their key properties, they'll break ground on
the project, which possibly will call to mind the Cherry Creek area in Denver.
But there still are a few holdouts. Most notably the Cheyenne Motel.
1,000 calls
The developers made an offer on the motel, and went along with a counter-offer that was
$100,000 higher. But the Cheyenne's owner countered again, asking for another $100,000.
Morley hasn't met that price.

8. He may not have to. At the urging of City Councilor Jerry Heimlicher, Police Chief Richard Myers is
working with City Attorney Pat Kelly to toughen existing ordinances and allow police to more
easily hold motel owners and managers responsible for habitual, blatant crime that takes place
on their property. If the changes are successful, some motel owners might want to sell their
businesses rather than spend all their time and money in court.
It's no secret the changes are aimed at South Nevada's Cheyenne and Chief motels, which
together have accounted for approximately 1,000 police calls since 2006 — an exorbitant number
that Police Detective Olav Chaney says drains the overstretched department. Complaints include
a homicide, four shootings, one stabbing, assaults, suicides, domestic disturbances, drug dealing,
prostitution, noise and panhandling.
Recently, the focus has been on the Cheyenne, since Morley and Guadagnoli have purchased the
Chief and plan to shut it down around September.
Even before ordinance changes, the Cheyenne will be put on notice that inadequate code
enforcement compliance, fire safety and, especially, crime prevention, have made it a public
nuisance. The motel will be given a chance to come into compliance. If it does not, its operators
will face charges in court.
Under current law, the city might find such a case hard to win. But Heimlicher says this is just the
first strike in an all-out attack on South Nevada's troubles.
quot;We're going to end the crime spree in this part of town,quot; he says.
Whole Foods, here?
Ken Brown, who leases and runs the Cheyenne, clearly isn't pleased. He feels he's being harassed
by police, and references quot;the continuous trampling of basic civil rights down herequot; in an e-mail.
quot;we [sic] are continually subjected to harassment by the CSPD, specifically Olav Cheney [sic] and
his partners, the undercover vice cops,quot; he writes.
Chaney, for his part, says Brown quot;isn't very happy with us.quot;
quot;He's anti-cop,quot; Chaney says.
Brown's up against a growing force. With momentum from the South Nevada merchants group, a
coalition of concerned business owners, South Nevada and its surrounding areas are on the edge
of a massive makeover. At least five developers are scooping up properties with preliminary plans
for everything from a Whole Foods to a Lowe's to the Cheyenne Mountain Charter Academy's
Vanguard School.

9. One developer even envisions the area as a mirror of Beverly Hills' famed Rodeo Drive.
Three fellows from El Pomar Foundation are working on a plan for the area that will draw
together the dreams of various developers and set a strategy for beautification and fighting
crime. The plan will include preservation and improvement of many existing businesses. Once the
plan is complete, The Broadmoor will lend a financial hand (as many Broadmoor patrons must
drive through the unsavory portion of South Nevada). The area will also apply for status as a state
enterprise zone and an urban renewal area, which could give business owners and developers
access to special tax incentives, low-cost loans and freebies.
It's the type of goody basket that Heimlicher expects will transform South Nevada beyond
recognition over the next five years.
But, some ask, what happens to all the law-abiding, low-income people who have made the
area's motels into their homes? Heimlicher says he'll work with charities and the city's Housing
Authority to come up with a plan to relocate those tenants to nicer, affordable housing — even if
that means making special accommodations.
quot;We have to find a way to deal with these people,quot; he says, quot;so that they don't end up displaced.quot;