116 S Lincoln Ave

Loveland, CO 80537

$640,000B

16 bd · 16.0 ba · 3,583 sqft · Built 1950 · MultiFamily · Active · 231 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,060/mo
• Mortgage (P&I): −$3,356
• Tax + insurance: −$1,067
• HOA: −$0
• Vac / Maint / Mgmt: −$2,113
• Net cashflow: $3,525/mo
• Annual: $42,294/yr
• Cap rate: 12.90%
• Cash-on-cash: 23.60%
• DSCR: 2.05
• 1% rule: 1.57%
• Cash to close: $179,200

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $640k.
• At list price, monthly cash flow is $4k ($42k/yr) — positive. Per door: $881/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $640k).
• It's been on market 231 days — a 12% lower offer ($563k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $563k (12.0% 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 $19k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#52 in CO) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, amenities A; Watch: crime C-, commute F, cost of living F.
• Thompson School District R-2J (suburban): math 28% / reading 48% proficiency, ranked #28 of 86 in CO (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Winona Elementary School (math 15% / reading 22%, grade F, #724 of 966 statewide, top 77%, 250 students, 68% FRL); Mountain View High School (math 24% / reading 51%, grade F, #192 of 381 statewide, top 51%, 1,138 students, 35% FRL) — zoned schools average 51% FRL vs 29% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.6%/yr); 283 active listings in the ZIP; solid renter incomes; 1,786 units permitted in Larimer County in 2024 (402 in 5+ unit buildings).
• Larimer County population projected at +51% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 28y ago 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.
• Current owner paid $118k; list at $640k implies a 440% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.6% rent growth), your $179k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.9% vs local median 2.9% in Loveland — 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

• It's been on market 231 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1950 — 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.
• 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.