3646 S Granby Way Unit K-6

Aurora, CO 80014

$150,000D

2 bd · 1.0 ba · 825 sqft · Built 1977 · Condo · Active · 306 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,632/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$250
• HOA: −$340
• Vac / Maint / Mgmt: −$343
• Net cashflow: $-87/mo
• Annual: $-1,048/yr
• Cap rate: 5.59%
• Cash-on-cash: -2.49%
• DSCR: 0.89
• 1% rule: 1.09%
• Cash to close: $42,000

Investor read

• This is a 2-bed/1.0-bath condo listed at $150k. Condition is rated fair.
• At list price, monthly cash flow is $-87 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (8.4% below list).
• Meets the 1% rule at list price ($2k rent vs $150k).
• It's been on market 306 days — a 12% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $132k (12.0% 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 $4k 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: Independence Elementary School (math 5% / reading 22%, grade F, #824 of 966 statewide, top 88%, 432 students, 61% FRL); Laredo Middle School (math 22% / reading 37%, grade F, #129 of 270 statewide, top 51%, 920 students, 44% FRL); Smoky Hill High School (math 30% / reading 54%, grade F, #155 of 381 statewide, top 42%, 2,252 students, 42% FRL) — zoned schools average 49% FRL vs 21% district-wide (28 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 28% at this address vs 49% district-wide (-21 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.
• Watch-outs: HOA is 21% of rent.
• Market conditions: Rents falling (-3.4%/yr); 416 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 55d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Cap rate 5.6% vs local median 3.2% 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 306 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen countertops — Visible wear and discoloration on the countertops.
• Minor: Bathroom tiles — Some wear and discoloration on the bathroom tiles.
• Minor: Exterior siding — Some wear and discoloration on the exterior siding.
• Minor: Living room carpet — Worn appearance of the carpet in the living area.
• Minor: Kitchen flooring — Dated appearance of the kitchen flooring.
• Minor: Paint — Chipped paint in some areas.