3985 W 1960 N

Lehi, UT 84048

$445,000D-

3 bd · 2.5 ba · 2,402 sqft · Built 2022 · Townhouse · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,385/mo
• Mortgage (P&I): −$2,334
• Tax + insurance: −$351
• HOA: −$102
• Vac / Maint / Mgmt: −$501
• Net cashflow: $-903/mo
• Annual: $-10,834/yr
• Cap rate: 3.86%
• Cash-on-cash: -8.70%
• DSCR: 0.61
• 1% rule: 0.54%
• Cash to close: $124,600

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $445k.
• At list price, monthly cash flow is $-903 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $286k (35.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (46.4% below list).
• It's been on market 25 days — a 2% lower offer ($438k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (46.4% below list) — sets the bar for 1% rule.
• In year one you build about $48k of equity ($3k loan paydown + $44k appreciation (10.0% local appreciation)).
• Location reads 88/100 on livability (#6 in UT, #242 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Alpine District (suburban): math 45% / reading 50% proficiency, ranked #25 of 80 in UT (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Riverview School (math 56% / reading 55%, grade C, #93 of 585 statewide, top 17%, 977 students, 16% FRL); Willowcreek Middle (math 50% / reading 47%, grade C-, #35 of 138 statewide, top 26%, 1,746 students, 13% FRL); Lehi High (math 36% / reading 47%, grade F, #57 of 171 statewide, top 34%, 1,982 students, 12% FRL) — zoned schools at 14% FRL track the district average.
• Market conditions: 329 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 6,326 units permitted in Utah County in 2024 (1,053 in 5+ unit buildings).
• Utah County population projected at +49% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$76k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.