251 E 300 S

Springville, UT 84663

$2,100,000D-

12 bd · 12.0 ba · 6,755 sqft · Built 1914 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,490/mo
• Mortgage (P&I): −$11,013
• Tax + insurance: −$1,536
• HOA: −$0
• Vac / Maint / Mgmt: −$3,253
• Net cashflow: $-312/mo
• Annual: $-3,738/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.64%
• DSCR: 0.97
• 1% rule: 0.74%
• Cash to close: $588,000

Investor read

• This is a 12 × 1-bed/?-bath units multifamily listed at $2.10M.
• At list price, monthly cash flow is $-312 ($-4k/yr) — negative. Per door: $-26/mo.
• To cash-flow at today's rent, offer at most $2.04M (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.55M (26.2% below list).
• It's been on market 62 days — a 6% lower offer ($1.97M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.55M (26.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $15k of loan paydown is wiped out by about $63k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#12 in UT, #476 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+.
• Nebo District (suburban): math 38% / reading 40% proficiency, ranked #45 of 80 in UT (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1914 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.3%/yr); 199 active listings in the ZIP; solid renter incomes; 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.
• 6 sale attempts since 30y 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• At $15,490/mo this rent would consume 206% of the median local household income ($90k/yr) (locally 617% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• It's been on market 62 days. Have you received any prior offers? Is the seller open to a 26% 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?
• Built in 1914 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?