440 Colorado Ave

Stratton, CO 80836

$150,000B+

6 bd · 2.0 ba · 3,485 sqft · Built 1927 · MultiFamily · Active · 347 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,976/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$126
• HOA: −$0
• Vac / Maint / Mgmt: −$625
• Net cashflow: $1,439/mo
• Annual: $17,267/yr
• Cap rate: 17.80%
• Cash-on-cash: 41.11%
• DSCR: 2.83
• 1% rule: 1.98%
• Cash to close: $42,000

Investor read

• This is a 6-bed/2.0-bath multifamily listed at $150k.
• At list price, monthly cash flow is $1k ($17k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $150k).
• It's been on market 347 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.
• In year one you build about $16k of equity ($1k loan paydown + $15k appreciation (10.0% local appreciation)).
• Location reads 56/100 on livability (#340 in CO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D+, crime F, amenities F.
• School District No. R-4 In The County Of Kit Carson And Stat (rural): math 25% / reading 35% proficiency, ranked #107 of 176 in CO (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Stratton Elementary School (math 70% / reading 44%, grade C+, #115 of 966 statewide, top 14%, 113 students, 50% FRL); Stratton Middle School (math 30% / reading 24%, grade F, #150 of 270 statewide, top 57%, 46 students, 41% FRL); Stratton Senior High School (math 30% / reading 70%, grade D+, #97 of 381 statewide, top 30%, 62 students, 48% FRL) — zoned schools average 47% FRL vs 30% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 45% at this address vs 30% district-wide (+15 pts) — the actual schools serving this property are materially stronger than the School District No. R-4 In The County Of Kit Carson And Stat average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 3 units permitted in Kit Carson County in 2024 (0 in 5+ unit buildings).
• Kit Carson County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 11 sale attempts since 13y ago; this cycle's ask has dropped $35k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $125k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $42k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 347 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1927 — 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 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?
• 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.