5330 Spalding Pl

Frederick, CO 80504

$412,000C+

3 bd · 3.0 ba · 1,551 sqft · Built 2021 · MultiFamily · Pending · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,875/mo
• Mortgage (P&I): −$2,161
• Tax + insurance: −$545
• HOA: −$60
• Vac / Maint / Mgmt: −$1,024
• Net cashflow: $1,086/mo
• Annual: $13,027/yr
• Cap rate: 9.45%
• Cash-on-cash: 11.29%
• DSCR: 1.50
• 1% rule: 1.18%
• Cash to close: $115,360

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $412k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $412k).
• It's been on market 46 days — a 3% lower offer ($400k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $400k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#175 in CO) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• St. Vrain Valley School District No. Re1J (suburban): math 32% / reading 51% proficiency, ranked #23 of 86 in CO (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Legacy Elementary School (math 27% / reading 42%, grade F, #430 of 966 statewide, top 47%, 434 students, 27% FRL); Frederick Senior High School (math 21% / reading 53%, grade F, #196 of 381 statewide, top 53%, 1,412 students, 34% FRL) — zoned schools at 31% FRL track the district average.
• Market conditions: Rents soft (-2.3%/yr); 534 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 3,170 units permitted in Weld County in 2024 (278 in 5+ unit buildings).
• Weld County population projected at +46% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.5% vs local median 3.9% in Frederick — 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.
• At $4,875/mo this rent would consume 51% of the median local household income ($114k/yr) (locally 1028% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 46 days. Have you received any prior offers? Is the seller open to a 3% 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.
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.