8142 Misty Moon Dr

Colorado Springs, CO 80924

$485,000D-

3 bd · 3.0 ba · 2,723 sqft · Built 2016 · SingleFamily · Active · 230 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,627/mo
• Mortgage (P&I): −$2,543
• Tax + insurance: −$468
• HOA: −$59
• Vac / Maint / Mgmt: −$552
• Net cashflow: $-995/mo
• Annual: $-11,940/yr
• Cap rate: 3.83%
• Cash-on-cash: -8.79%
• DSCR: 0.61
• 1% rule: 0.54%
• Cash to close: $135,800

Investor read

• This is a 3-bed/3.0-bath single-family listed at $485k.
• At list price, monthly cash flow is $-995 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $309k (36.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $263k (45.8% below list).
• It's been on market 230 days — a 12% lower offer ($427k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $263k (45.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.8%/yr); year-one equity from $3k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#23 in CO, #2,639 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, housing A+, health & safety A+; Watch: cost of living C-, crime F.
• Academy School District No. 20 In The County Of El Paso An (urban): math 45% / reading 65% proficiency, ranked #8 of 86 in CO (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Market conditions: Rents soft (-0.8%/yr); 403 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 3,906 units permitted in El Paso County in 2024 (872 in 5+ unit buildings).
• El Paso County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 9y ago; this cycle's ask has dropped $105k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $340k; 43% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 230 days. Have you received any prior offers? Is the seller open to a 46% 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?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?