Gillingham Plan

Cheyenne, WY 82009

$186,000F

2 bd · 2.0 ba · 1,159 sqft · Built — · Townhouse · Active · 239 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,390/mo
• Mortgage (P&I): −$1,645
• Tax + insurance: −$523
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $-1,070/mo
• Annual: $-12,837/yr
• Cap rate: 2.20%
• Cash-on-cash: -14.61%
• DSCR: 0.35
• 1% rule: 0.44%
• Cash to close: $87,841

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $186k. Condition is rated poor.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $159k (14.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (25.3% below list).
• It's been on market 239 days — a 12% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (25.3% 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 $9k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#2 in WY, #947 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime D.
• Laramie County School District #1 (urban): math 41% / reading 48% proficiency, ranked #33 of 41 in WY (top 80%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Anderson Elementary (math 57% / reading 67%, grade B, #30 of 151 statewide, top 26%, 327 students, 30% FRL); Carey Junior High School (math 43% / reading 50%, grade D+, #39 of 55 statewide, top 70%, 861 students, 38% FRL); East High School (math 43% / reading 43%, grade F, #46 of 75 statewide, top 61%, 1,513 students, 30% FRL) — zoned schools at 33% FRL track the district average.
• Watch-outs: property tax is 2.5% of price.
• Market conditions: Rents rising fast (+6.7%/yr); 844 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 485 units permitted in Laramie County in 2024 (104 in 5+ unit buildings).
• Laramie County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.2% vs local median 3.4% in Cheyenne — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent is only 16% of the median local income ($104k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 239 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D 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?

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage visible in the independent aerial image.
• Major: interior walls — Visible damage and discoloration in the interior walls.
• Major: flooring — No visible flooring, but overall condition suggests it may be in poor shape.
• Major: systems — No visible systems, but overall condition suggests they may be in poor shape.
• Major: landscaping — No visible landscaping, but overall condition suggests it may be in poor shape.
• Major: fencing — No visible fencing, but overall condition suggests it may be in poor shape.