2210 W 3rd St #38

Craig, CO 81625

$40,000B-

3 bd · 2.0 ba · 924 sqft · Built 1994 · Manufactured · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,264/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$91
• HOA: −$0
• Vac / Maint / Mgmt: −$265
• Net cashflow: $698/mo
• Annual: $8,378/yr
• Cap rate: 29.23%
• Cash-on-cash: 81.92%
• DSCR: 4.65
• 1% rule: 3.16%
• Cash to close: $11,200

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $40k.
• At list price, monthly cash flow is $698 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 99 days — a 9% lower offer ($36k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $36k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $277 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#160 in CO) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living A; Watch: employment C-, crime D, amenities F.
• Moffat County School District Re: No. 1 (town): math 22% / reading 35% proficiency, ranked #53 of 86 in CO (top 62%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Sandrock Elementary (math 5% / reading 17%, grade F, #879 of 966 statewide, top 94%, 325 students, 54% FRL); Craig Middle School (math 20% / reading 27%, grade F, #182 of 270 statewide, top 68%, 464 students, 42% FRL); Moffat County High School (math 22% / reading 42%, grade F, #220 of 381 statewide, top 59%, 560 students, 35% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 188 active listings in the ZIP; 18 units permitted in Moffat County in 2024 (0 in 5+ unit buildings).
• Moffat County population projected at -41% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $15k (27%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $20k; list at $40k implies a 100% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 29.2% vs local median 3.2% in Craig — 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.

Questions for listing agent

• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 D-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 D 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?
• 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.