275 Settlement Ln Unit A2

Elizabeth, CO 80107

$355,000F

2 bd · 2.0 ba · 1,695 sqft · Built 1984 · SingleFamily · Active · 198 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,942/mo
• Mortgage (P&I): −$1,862
• Tax + insurance: −$341
• HOA: −$60
• Vac / Maint / Mgmt: −$408
• Net cashflow: $-729/mo
• Annual: $-8,748/yr
• Cap rate: 3.83%
• Cash-on-cash: -8.80%
• DSCR: 0.61
• 1% rule: 0.55%
• Cash to close: $99,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $355k.
• At list price, monthly cash flow is $-729 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $226k (36.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $194k (45.3% below list).
• It's been on market 198 days — a 12% lower offer ($312k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (45.3% 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 $11k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#101 in CO) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D, amenities F, commute F.
• Elizabeth School District (rural): math 31% / reading 46% proficiency, ranked #25 of 86 in CO (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Singing Hills Elementary School (math 47% / reading 52%, grade D, #207 of 966 statewide, top 24%, 418 students, 16% FRL); Elizabeth Middle School (math 24% / reading 49%, grade F, #102 of 270 statewide, top 38%, 419 students, 16% FRL); Elizabeth High School (math 37% / reading 67%, grade D+, #90 of 381 statewide, top 24%, 679 students, 13% FRL) — zoned schools at 15% FRL track the district average.
• Market conditions: 336 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 780 units permitted in Elbert County in 2024 (0 in 5+ unit buildings).
• Elbert County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 11y ago; this cycle's ask has dropped $35k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.8% vs local median 1.9% in Elizabeth — 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 198 days. Have you received any prior offers? Is the seller open to a 45% 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?
• 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.
• 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.
• 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.