Plan 2 Plan

Parker, CO 80134

$619,900D

6 bd · 5.0 ba · 1,890 sqft · Built — · MultiFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,534/mo
• Mortgage (P&I): −$3,251
• Tax + insurance: −$1,033
• HOA: −$0
• Vac / Maint / Mgmt: −$1,162
• Net cashflow: $88/mo
• Annual: $1,054/yr
• Cap rate: 6.46%
• Cash-on-cash: 0.61%
• DSCR: 1.03
• 1% rule: 0.89%
• Cash to close: $173,572

Investor read

• This is a 2 × 3.0-bed/2.5-bath units multifamily listed at $620k. Condition is rated fair.
• At list price, monthly cash flow is $88 ($1k/yr) — positive. Per door: $44/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 $553k (10.7% below list).
• It's been on market 110 days — a 9% lower offer ($564k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $553k (10.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#7 in CO, #1,304 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Douglas County School District No. RE-1 (suburban): math 45% / reading 62% proficiency, ranked #7 of 86 in CO (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Legacy Point Elementary School (math 44% / reading 47%, grade D-, #268 of 966 statewide, top 28%, 416 students, 9% FRL); Sagewood Middle School (math 27% / reading 47%, grade F, #95 of 270 statewide, top 37%, 824 students, 8% FRL); Ponderosa High School (math 36% / reading 65%, grade D+, #93 of 381 statewide, top 24%, 1,402 students, 0% FRL) — zoned schools at 6% FRL track the district average.
• Market conditions: Rents soft (-0.9%/yr); 774 active listings in the ZIP; high-income renter base; 3,131 units permitted in Douglas County in 2024 (950 in 5+ unit buildings).
• Douglas County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.5% vs local median 3.0% in Parker — 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 $5,534/mo this rent would consume 45% of the median local household income ($147k/yr) (locally 1267% 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 110 days. Have you received any prior offers? Is the seller open to a 11% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The independent satellite image shows significant dirt and debris on the roof, indicating poor condition.
• Major: exterior siding — The independent satellite image shows significant dirt and debris on the siding, indicating poor condition.
• Major: exterior fencing — The independent satellite image shows significant dirt and debris on the fencing, indicating poor condition.