3235 White Ave

Clifton, CO 81520

$750,000D

5 bd · 6.0 ba · 4,632 sqft · Built 1981 · MultiFamily · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,815/mo
• Mortgage (P&I): −$3,933
• Tax + insurance: −$472
• HOA: −$0
• Vac / Maint / Mgmt: −$1,221
• Net cashflow: $189/mo
• Annual: $2,267/yr
• Cap rate: 6.60%
• Cash-on-cash: 1.08%
• DSCR: 1.05
• 1% rule: 0.78%
• Cash to close: $210,000

Investor read

• This is a 4 × 3.0-bed/1.5-bath units multifamily listed at $750k.
• At list price, monthly cash flow is $189 ($2k/yr) — positive. Per door: $47/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $582k (22.5% below list).
• It's been on market 64 days — a 6% lower offer ($705k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $582k (22.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#140 in CO) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A, commute A-; Watch: crime F, amenities F, employment F.
• Mesa County Valley School District No. 51 (suburban): math 26% / reading 38% proficiency, ranked #43 of 86 in CO (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rocky Mountain Elementary School (math 8% / reading 22%, grade F, #793 of 966 statewide, top 84%, 469 students, 75% FRL); Palisade High School (math 35% / reading 57%, grade D-, #138 of 381 statewide, top 36%, 1,125 students, 42% FRL) — zoned schools average 59% FRL vs 39% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+2.4%/yr); 135 active listings in the ZIP; 1,014 units permitted in Mesa County in 2024 (240 in 5+ unit buildings).
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $270k; list at $750k implies a 178% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 3.3% in Clifton — 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 $5,815/mo this rent would consume 139% of the median local household income ($50k/yr) (locally 362% 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 64 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?