270 N 400 W

Provo, UT 84601

$715,000C

8 bd · 4.0 ba · 2,660 sqft · Built 1911 · MultiFamily · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,074/mo
• Mortgage (P&I): −$3,750
• Tax + insurance: −$636
• HOA: −$0
• Vac / Maint / Mgmt: −$1,486
• Net cashflow: $1,203/mo
• Annual: $14,436/yr
• Cap rate: 8.31%
• Cash-on-cash: 7.21%
• DSCR: 1.32
• 1% rule: 0.99%
• Cash to close: $200,200

Investor read

• This is a 4 × 5-bed/4.0-bath units multifamily listed at $715k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $301/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $707k (1.1% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $707k (1.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#15 in UT, #602 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A.
• Provo District (urban): math 38% / reading 46% proficiency, ranked #44 of 80 in UT (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Timpanogos School (math 28% / reading 25%, grade F, #463 of 585 statewide, top 80%, 627 students, 61% FRL); Dixon Middle (math 31% / reading 39%, grade F, #95 of 138 statewide, top 69%, 936 students, 46% FRL); Provo High (math 18% / reading 47%, grade F, #109 of 171 statewide, top 64%, 1,988 students, 37% FRL).
• Watch-outs: built in 1911 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.8%/yr); 224 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 5 sale attempts since 29y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $228k; list at $715k implies a 214% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.8% rent growth), your $200k cash investment doubles in ~10 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $7,074/mo this rent would consume 126% of the median local household income ($67k/yr) (locally 1332% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1911 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.