318 Colorado St

Sugar City, CO 81076

$41,900B

1 bd · 1.0 ba · 532 sqft · Built 1964 · SingleFamily · Active · 67 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $784/mo
• Mortgage (P&I): −$220
• Tax + insurance: −$44
• HOA: −$0
• Vac / Maint / Mgmt: −$165
• Net cashflow: $356/mo
• Annual: $4,266/yr
• Cap rate: 16.48%
• Cash-on-cash: 36.37%
• DSCR: 2.62
• 1% rule: 1.87%
• Cash to close: $11,732

Investor read

• This is a 1-bed/1.0-bath single-family listed at $42k.
• At list price, monthly cash flow is $356 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($784 rent vs $42k).
• It's been on market 67 days — a 6% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $39k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $290 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 51/100 on livability (#396 in CO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Crowley County School District No. Re-1-J (rural): math 16% / reading 28% proficiency, ranked #150 of 176 in CO (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Crowley County Elementary K-6 (math 15% / reading 37%, grade F, #581 of 966 statewide, top 61%, 191 students, 65% FRL); Crowley County Junior And Senior High School (math 15% / reading 32%, grade F, #304 of 381 statewide, top 80%, 188 students, 62% FRL) — zoned schools at 64% FRL track the district average.
• Market conditions: 6 active listings in the ZIP; 4 units permitted in Crowley County in 2024 (0 in 5+ unit buildings).
• Crowley County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $13k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $12k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 67 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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.