720 N Bluff Dr

Franktown, CO 80116

$795,000F

2 bd · 2.0 ba · 3,016 sqft · Built 1987 · SingleFamily · Active · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,899/mo
• Mortgage (P&I): −$4,169
• Tax + insurance: −$640
• HOA: −$0
• Vac / Maint / Mgmt: −$609
• Net cashflow: $-2,518/mo
• Annual: $-30,221/yr
• Cap rate: 2.49%
• Cash-on-cash: -13.58%
• DSCR: 0.40
• 1% rule: 0.36%
• Cash to close: $222,600

Investor read

• This is a 2-bed/2.0-bath single-family listed at $795k.
• At list price, monthly cash flow is $-3k ($-30k/yr) — negative.
• To cash-flow at today's rent, offer at most $350k (56.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $290k (63.5% below list).
• It's been on market 47 days — a 3% lower offer ($771k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $290k (63.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#169 in CO) — a middle-class / working-renter tenant base. Strengths: crime A, employment A-, cost of living A-; Watch: amenities F, commute F, housing F.
• Douglas County School District No. RE-1 (suburban): math 45% / reading 62% proficiency, ranked #7 of 86 in CO (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Franktown Elementary School (math 44% / reading 52%, grade D, #232 of 966 statewide, top 25%, 365 students, 6% FRL); Sagewood Middle School (math 27% / reading 47%, grade F, #95 of 270 statewide, top 37%, 824 students, 8% FRL); Ponderosa High School (math 36% / reading 65%, grade D+, #93 of 381 statewide, top 24%, 1,402 students, 0% FRL) — zoned schools at 5% FRL track the district average.
• Market conditions: 67 active listings in the ZIP; 3,131 units permitted in Douglas County in 2024 (950 in 5+ unit buildings).
• Douglas County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 2.5% vs local median 1.0% in Franktown — 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 47 days. Have you received any prior offers? Is the seller open to a 64% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.