240 S 22nd Ave

Brighton, CO 80601

$288,000D

3 bd · 2.0 ba · 1,924 sqft · Built 1974 · Townhouse · Pending · 84 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,524/mo
• Mortgage (P&I): −$1,510
• Tax + insurance: −$245
• HOA: −$390
• Vac / Maint / Mgmt: −$530
• Net cashflow: $-152/mo
• Annual: $-1,821/yr
• Cap rate: 5.66%
• Cash-on-cash: -2.26%
• DSCR: 0.90
• 1% rule: 0.88%
• Cash to close: $80,640

Investor read

• This is a 3-bed/2.0-bath townhouse listed at $288k.
• At list price, monthly cash flow is $-152 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $261k (9.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $252k (12.4% below list).
• It's been on market 84 days — a 6% lower offer ($271k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $252k (12.4% 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 (#242 in CO) — a middle-class / working-renter tenant base. Strengths: housing A+, employment A; Watch: crime F, amenities F, cost of living F.
• School District 27J (suburban): math 20% / reading 37% proficiency, ranked #46 of 86 in CO (top 54%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Southeast Elementary School (math 12% / reading 27%, grade F, #706 of 966 statewide, top 75%, 526 students, 65% FRL); Vikan Middle School (math 15% / reading 17%, grade F, #225 of 270 statewide, top 84%, 580 students, 64% FRL); Brighton High School (math 21% / reading 48%, grade F, #209 of 381 statewide, top 56%, 1,854 students, 38% FRL) — zoned schools average 56% FRL vs 29% district-wide (26 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents soft (-2.1%/yr); 325 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 2,299 units permitted in Adams County in 2024 (343 in 5+ unit buildings).
• Adams County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $32k (10%) 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 5.7% vs local median 3.2% in Brighton — 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 84 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?