Ashford Plan

Colorado Springs, CO 80919

$162,000D-

1 bd · 1.0 ba · 890 sqft · Built — · Townhouse · Active · 1004 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,332/mo
• Mortgage (P&I): −$1,532
• Tax + insurance: −$487
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $-967/mo
• Annual: $-11,610/yr
• Cap rate: 2.32%
• Cash-on-cash: -14.19%
• DSCR: 0.37
• 1% rule: 0.46%
• Cash to close: $81,818

Investor read

• This is a 1-bed/1.0-bath townhouse listed at $162k. Condition is rated fair.
• At list price, monthly cash flow is $-967 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $152k (6.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (17.8% below list).
• It's been on market 1004 days — a 12% lower offer ($143k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $133k (17.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k 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.
• Zoned schools: Chinook Trail Elementary School (math 62% / reading 82%, grade A-, #26 of 966 statewide, top 4%, 631 students, 8% FRL); Eagleview Middle School (math 42% / reading 59%, grade C, #38 of 270 statewide, top 14%, 948 students, 14% FRL); Pine Creek High School (math 53% / reading 77%, grade B, #31 of 381 statewide, top 8%, 1,815 students, 0% FRL) — zoned schools at 7% FRL track the district average.
• Watch-outs: property tax is 2.7% of price.
• Market conditions: Rents rising (+1.6%/yr); 312 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals lingering (median 41d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Cap rate 2.3% vs local median 3.4% in Colorado Springs — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent is only 13% of the median local income ($120k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 1004 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?