601 North Ln

Avondale, CO 81022

$219,900D

4 bd · 2.0 ba · 1,418 sqft · Built 1998 · Manufactured · Pending · 177 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,652/mo
• Mortgage (P&I): −$1,153
• Tax + insurance: −$221
• HOA: −$0
• Vac / Maint / Mgmt: −$347
• Net cashflow: $-69/mo
• Annual: $-833/yr
• Cap rate: 5.91%
• Cash-on-cash: -1.35%
• DSCR: 0.94
• 1% rule: 0.75%
• Cash to close: $61,572

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $220k.
• At list price, monthly cash flow is $-69 ($-833/yr) — negative.
• To cash-flow at today's rent, offer at most $208k (5.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (24.9% below list).
• It's been on market 177 days — a 12% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $165k (24.9% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($2k loan paydown + $6k appreciation (2.6% local appreciation)).
• Location reads 60/100 on livability (#255 in CO) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living B; Watch: health & safety C-, crime F, amenities F.
• Pueblo County School District 70 (suburban): math 24% / reading 43% proficiency, ranked #40 of 86 in CO (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Vineland Elementary School (math 15% / reading 42%, grade F, #534 of 966 statewide, top 56%, 308 students, 56% FRL); Vineland Middle School (math 12% / reading 27%, grade F, #207 of 270 statewide, top 79%, 313 students, 63% FRL); Pueblo County High School (math 29% / reading 52%, grade F, #164 of 381 statewide, top 43%, 1,219 students, 46% FRL) — zoned schools average 55% FRL vs 33% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 25 active listings in the ZIP; 269 units permitted in Pueblo County in 2024 (0 in 5+ unit buildings).
• Pueblo County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 8 sale attempts since 22y 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 $26k; list at $220k implies a 730% gain — meaningful room to come down on a strong offer.
• At projected returns (2.6% appreciation + 3.0% rent growth), your $62k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 177 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.