12450 E Cornell Ave #104

Aurora, CO 80014

$160,000D

1 bd · 1.0 ba · 786 sqft · Built 1980 · Condo · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,591/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$165
• HOA: −$273
• Vac / Maint / Mgmt: −$334
• Net cashflow: $-20/mo
• Annual: $-244/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.54%
• DSCR: 0.98
• 1% rule: 0.99%
• Cash to close: $44,800

Investor read

• This is a 1-bed/1.0-bath condo listed at $160k.
• At list price, monthly cash flow is $-20 ($-244/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (2.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $159k (0.6% below list).
• It's been on market 44 days — a 3% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $155k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#70 in CO) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, employment A-; Watch: crime F, cost of living F.
• Cherry Creek School District No. 5 In The County Of Arapah (urban): math 40% / reading 58% proficiency, ranked #11 of 86 in CO (top 13%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Polton Community Elementary School (math 15% / reading 32%, grade F, #634 of 966 statewide, top 67%, 477 students, 55% FRL); Prairie Middle School (math 6% / reading 15%, grade F, #245 of 270 statewide, top 91%, 1,383 students, 71% FRL); Overland High School (math 23% / reading 43%, grade F, #216 of 381 statewide, top 57%, 2,109 students, 64% FRL) — zoned schools average 63% FRL vs 21% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 22% at this address vs 49% district-wide (-27 pts) — the specific schools serving this property underperform the Cherry Creek School District No. 5 In The County Of Arapah average; the district grade overstates school quality for this exact location.
• Market conditions: Rents falling (-3.4%/yr); 281 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 3,927 units permitted in Arapahoe County in 2024 (1,525 in 5+ unit buildings).
• Arapahoe County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 14y ago; this cycle's ask has dropped $15k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $45k; list at $160k implies a 256% gain — meaningful room to come down on a strong offer.
• Cap rate 6.1% vs local median 3.3% in Aurora — 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

• 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 44 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?