The numbers
Live for free — or close to it
Three illustrative scenarios at the improved $679,000 list price, 30-year fixed at a ~6.5% note rate. Your lender's numbers will differ; use these to see the shape of the opportunity.
New: the motivated seller is offering a 3-2-1 buydown — your interest rate drops 3% in year one, 2% in year two, and 1% in year three, paid for by the seller. Applied to the FHA scenario below, here’s the year-by-year picture:
| Buydown year | Est. rate* | Est. PITI | Net cost w/ ADU + 2 lockoffs |
|---|
| Year 1 (rate − 3%) | 3.5% | $3,900 | ≈ −$500/mo — income exceeds the payment |
| Year 2 (rate − 2%) | 4.5% | $4,284 | ≈ −$116/mo |
| Year 3 (rate − 1%) | 5.5% | $4,692 | ≈ $292/mo |
| Year 4+ (note rate) | 6.5% | $5,120 | ≈ $720/mo |
Scenario A — First-time buyer, FHA 3.5% down (~$23,800)
| Monthly item | Amount |
|---|
| Principal & interest (incl. financed upfront MIP) | $4,214 |
| Property taxes ($4,633/yr) | $386 |
| FHA mortgage insurance (est.) | $300 |
| Homeowners insurance (est.) | $220 |
| Total PITI (note rate) | $5,120 |
| ADU — long-term 1BR tenant | − $1,900 |
| Lockoff suite (rec room w/ wet bar) | − $1,400 |
| Second lockoff / bedroom suite | − $1,100 |
| Your net housing cost (note rate) | ≈ $720/mo — or ≈ −$500/mo in year 1 with the buydown |
Less than a parking spot in Denver at the full note rate — and with the seller-paid buydown, the tenants out-earn the payment for the first two years.
Scenario B — 20% down (~$135,800), conventional
| Monthly item | Amount |
|---|
| Principal & interest | $3,433 |
| Property taxes | $386 |
| Homeowners insurance (est.) | $220 |
| Total PITI (no PMI) | $4,039 |
| ADU + two lockoffs (as above) | − $4,400 |
| Your net housing cost | ≈ −$361/mo (tenants pay it all, plus change) |
Scenario C — Rent the ADU only (maximum privacy)
| Monthly item | Amount |
|---|
| Total PITI (Scenario A financing, note rate) | $5,120 |
| ADU — long-term tenant | − $1,900 |
| Your net housing cost | ≈ $3,220/mo — ≈ $2,000/mo in year 1 with the buydown |
Even the lightest-touch version — one tenant, fully separate entrance, zero shared space — knocks roughly a third off the payment. And the lockoffs stay in your back pocket for later.
*Buydown rates are illustrative against a 6.5% note rate; the 3-2-1 buydown is a seller-paid concession subject to lender approval and program availability. ADU rent scenarios assume a market-rate lease; the current month-to-month tenant pays below market and may stay (at a negotiated rent) or vacate at closing — buyer's choice. Illustrative estimates as of July 2026, not a loan offer, appraisal, or income guarantee. Rate, insurance, MIP/PMI, and rent figures are estimates; actual amounts vary. Rental income depends on occupancy and market conditions. Buyer to verify ADU permits, rental/short-term-rental regulations with Jefferson County, and any Hiwan Hills Improvement Association covenants. Information from IRES MLS #9306009 deemed reliable but not guaranteed. Equal Housing Opportunity.
