Mountain Hillside Duo 3 Plan

Colorado Springs, CO 80924

$470,900C-

6 bd · 5.0 ba · 1,775 sqft · Built — · MultiFamily · Active · 332 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,686/mo
• Mortgage (P&I): −$2,469
• Tax + insurance: −$785
• HOA: −$0
• Vac / Maint / Mgmt: −$984
• Net cashflow: $448/mo
• Annual: $5,372/yr
• Cap rate: 7.43%
• Cash-on-cash: 4.07%
• DSCR: 1.18
• 1% rule: 1.00%
• Cash to close: $131,852

Investor read

• This is a 2 × 3.0-bed/2.5-bath units multifamily listed at $471k. Condition is rated poor.
• At list price, monthly cash flow is $448 ($5k/yr) — positive. Per door: $224/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 $469k (0.5% below list).
• It's been on market 332 days — a 12% lower offer ($414k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $414k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.8%/yr); year-one equity from $3k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#23 in CO, #2,639 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, housing A+, health & safety A+; Watch: cost of living C-, crime F.
• Academy School District No. 20 In The County Of El Paso An (urban): math 45% / reading 65% proficiency, ranked #8 of 86 in CO (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Chinook Trail Elementary School (math 62% / reading 82%, grade A-, #26 of 966 statewide, top 4%, 631 students, 8% FRL); Eagleview Middle School (math 42% / reading 59%, grade C, #38 of 270 statewide, top 14%, 948 students, 14% FRL); Pine Creek High School (math 53% / reading 77%, grade B, #31 of 381 statewide, top 8%, 1,815 students, 0% FRL) — zoned schools at 7% FRL track the district average.
• Market conditions: Rents soft (-0.8%/yr); 407 active listings in the ZIP; high-income renter base; 3,906 units permitted in El Paso County in 2024 (872 in 5+ unit buildings).
• El Paso County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 7.4% vs local median 3.3% in Colorado Springs — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent runs 40% of the median local income ($139k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 332 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?

Repairs flagged (vision-AI assessment)

• Major: Kitchen — No photos of kitchen
• Major: Bathrooms — No photos of bathrooms
• Major: Roof — No photos of roof
• Major: Exterior — No photos of exterior
• Major: Flooring — No photos of flooring
• Major: Interior walls/paint — No photos of interior walls/paint