Tennyson Plan

Westminster, CO 80031

$572,990C+

3 bd · 2.5 ba · 1,720 sqft · Built — · MultiFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,716/mo
• Mortgage (P&I): −$3,005
• Tax + insurance: −$955
• HOA: −$0
• Vac / Maint / Mgmt: −$1,410
• Net cashflow: $1,346/mo
• Annual: $16,150/yr
• Cap rate: 9.11%
• Cash-on-cash: 10.07%
• DSCR: 1.45
• 1% rule: 1.17%
• Cash to close: $160,437

Investor read

• This is a 3-bed/2.5-bath multifamily listed at $573k. Condition is rated excellent.
• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $573k).
• It's been on market 16 days — a 2% lower offer ($564k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $564k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#81 in CO) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: health & safety D, crime D-, amenities F.
• Westminster Public Schools (suburban): math 11% / reading 22% proficiency, ranked #81 of 86 in CO (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents soft (-0.9%/yr); 258 active listings in the ZIP; 25 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,299 units permitted in Adams County in 2024 (343 in 5+ unit buildings).
• Adams County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 9.1% vs local median 2.8% in Westminster — 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.
• At $6,716/mo this rent would consume 75% of the median local household income ($107k/yr) (locally 1056% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.