3242 County Road 265

Silver Cliff, CO 81252

$300,000D

3 bd · 2.0 ba · 2,046 sqft · Built 2000 · SingleFamily · Active · 297 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,160/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$306
• HOA: −$0
• Vac / Maint / Mgmt: −$454
• Net cashflow: $-173/mo
• Annual: $-2,072/yr
• Cap rate: 5.60%
• Cash-on-cash: -2.47%
• DSCR: 0.89
• 1% rule: 0.72%
• Cash to close: $84,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $300k.
• At list price, monthly cash flow is $-173 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $270k (10.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $216k (28.0% below list).
• It's been on market 297 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $216k (28.0% 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 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.
• Market conditions: 283 active listings in the ZIP; 117 units permitted in Custer County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 13y ago; this cycle's ask has dropped $25k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $115k; list at $300k implies a 160% gain — meaningful room to come down on a strong offer.
• 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 297 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• 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?
• 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.