5400 Sheridan Blvd

Berkley, CO 80002

$105,000B-

4 bd · 2.0 ba · 3,528 sqft · Built 1978 · Manufactured · Active · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,944/mo
• Mortgage (P&I): −$551
• Tax + insurance: −$125
• HOA: −$1,200
• Vac / Maint / Mgmt: −$618
• Net cashflow: $450/mo
• Annual: $5,403/yr
• Cap rate: 11.44%
• Cash-on-cash: 18.38%
• DSCR: 1.82
• 1% rule: 2.80%
• Cash to close: $29,400

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $105k.
• At list price, monthly cash flow is $450 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $105k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $726 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#141 in CO) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, employment A-; Watch: crime F, amenities F, cost of living 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.
• Zoned schools: Tennyson Knolls Preparatory School (math 5% / reading 5%, grade F, #958 of 966 statewide, top 100%, 371 students, 86% FRL); Shaw Heights Middle School (math 2% / reading 12%, grade F, #260 of 270 statewide, top 99%, 564 students, 80% FRL); Westminster High School (math 10% / reading 33%, grade F, #313 of 381 statewide, top 82%, 2,021 students, 79% FRL).
• Watch-outs: HOA is 41% of rent.
• Market conditions: Rents soft (-1.0%/yr); 1 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 26 sale attempts since 3y ago; this cycle's ask is 24% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 11.4% vs local median 3.0% in Berkley — 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.
• This rent runs 38% of the median local income ($93k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1978 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.
• 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.