Plan 1754 Plan

Commerce City, CO 80022

$395,990F

3 bd · 2.5 ba · 1,754 sqft · Built — · MultiFamily · Active · 548 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,016/mo
• Mortgage (P&I): −$2,805
• Tax + insurance: −$892
• HOA: −$0
• Vac / Maint / Mgmt: −$633
• Net cashflow: $-1,314/mo
• Annual: $-15,768/yr
• Cap rate: 3.35%
• Cash-on-cash: -10.53%
• DSCR: 0.53
• 1% rule: 0.56%
• Cash to close: $149,789

Investor read

• This is a 3-bed/2.5-bath multifamily listed at $396k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $345k (12.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $302k (23.8% below list).
• It's been on market 548 days — a 12% lower offer ($348k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $302k (23.8% 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 $16k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#137 in CO) — a middle-class / working-renter tenant base. Strengths: employment A+, housing 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: Turnberry Elementary (math 12% / reading 32%, grade F, #660 of 966 statewide, top 70%, 762 students, 34% FRL); Otho E Stuart Middle School (math 10% / reading 44%, grade F, #154 of 270 statewide, top 59%, 791 students, 42% FRL); Prairie View High School (math 15% / reading 38%, grade F, #262 of 381 statewide, top 69%, 1,821 students, 36% FRL).
• Market conditions: Rents rising (+2.6%/yr); 509 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 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.
• This rent runs 35% of the median local income ($104k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 548 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• 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?
• 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.