325 E Main St #18

Silver Cliff, CO 81252

$116,000D+

1 bd · 1.0 ba · 516 sqft · Built 2015 · SingleFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,466/mo
• Mortgage (P&I): −$608
• Tax + insurance: −$193
• HOA: −$420
• Vac / Maint / Mgmt: −$308
• Net cashflow: $-64/mo
• Annual: $-763/yr
• Cap rate: 5.64%
• Cash-on-cash: -2.35%
• DSCR: 0.90
• 1% rule: 1.26%
• Cash to close: $32,480

Investor read

• This is a 1-bed/1.0-bath single-family listed at $116k. Condition is rated good.
• At list price, monthly cash flow is $-64 ($-763/yr) — negative.
• To cash-flow at today's rent, offer at most $107k (7.9% below list).
• Meets the 1% rule at list price ($1k rent vs $116k).
• It's been on market 33 days — a 3% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (7.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $802 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#253 in CO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: housing D, crime F, amenities F.
• Custer County School District Consolidate 1 (rural): math 30% / reading 50% proficiency, ranked #55 of 176 in CO (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Custer County Elementary School (math 30% / reading 34%, grade F, #469 of 966 statewide, top 49%, 165 students, 42% FRL); Custer Middle School (math 17% / reading 44%, grade F, #127 of 270 statewide, top 47%, 75 students, 33% FRL); Custer County High School (math 50% / reading 70%, grade C+, #53 of 381 statewide, top 17%, 114 students, 33% FRL) — zoned schools at 36% FRL track the district average.
• Watch-outs: HOA is 29% of rent.
• Market conditions: 283 active listings in the ZIP; 117 units permitted in Custer County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 9y ago; this cycle's ask has dropped $27k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $52k; list at $116k implies a 123% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.5% in Silver Cliff — 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

• 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 33 days. Have you received any prior offers? Is the seller open to a 8% concession, seller financing, or rate buy-down credit?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.