How to Spot a Good Investment Property: Lessons From a Recent Deal

The best investment deals aren’t always obvious. Sometimes they look like a building no one wants.

Take the recent purchase and sale of 5715 Fairfax in Denver as an example.

In April, our team at Resolute purchased the property for $2,050,000. The building had previously been used for marijuana operations. The MMJ stigma combined with a tired exterior kept many potential buyers away.

But we saw potential where others saw problems. The price per square foot was competitive and the visibility of the building offered potential for an owner user looking for a unique identity in Denver. With some targeted updates and repositioning for an owner user sale, we were able to resell the property just a few months later for $2,862,500.

That’s an $812,500 difference in four months—and proof that finding value isn’t just about what a property is today, but what it could become tomorrow.

How to Find Interesting Deals

When analyzing an investment property, I always begin with the numbers:

• Cap Rate – What’s the return based on today’s income?

• Price per Square Foot – How does it compare to similar properties in the area?

These metrics give you a quick snapshot of where a deal stands.

But they’re only the beginning.

The real opportunities appear when you dig deeper and ask the right questions:

• Are rents under market? Could better marketing or stronger tenant mix bring higher rents?

• Can the use be repositioned? If it is an office building, could it be converted into retail by adding signage, or into medical space where demand is stronger.

• Can the property be divided, updated, or repurposed? Sometimes modest changes unlock significant value.

Why Looking Beyond the Numbers Matter

In today’s market— deals can be hard to find but opportunities are out there. They often require creativity, vision, and a willingness to look where others don’t.

The investors who succeed are the ones who can recognize hidden value and move decisively to unlock it.

Want to See More Opportunities Like This?

I’m constantly scouting for properties like 5715 Fairfax, and starting soon, I’ll be sharing a Deal of the Week in my newsletter.

📩 If you’d like interesting investment opportunities delivered straight to your inbox, you can sign up here: https://www.coloradoinvestmentguide.com/contact