965 Main St

Springfield, CO 81073

$164,000B

15 bd · 9.0 ba · 3,100 sqft · Built 1917 · MultiFamily · Active · 615 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,854/mo
• Mortgage (P&I): −$860
• Tax + insurance: −$273
• HOA: −$0
• Vac / Maint / Mgmt: −$599
• Net cashflow: $1,121/mo
• Annual: $13,456/yr
• Cap rate: 14.50%
• Cash-on-cash: 29.30%
• DSCR: 2.30
• 1% rule: 1.74%
• Cash to close: $45,920

Investor read

• This is a 3 × 1-bed/1.0-bath units multifamily listed at $164k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $374/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $164k).
• It's been on market 615 days — a 12% lower offer ($144k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $144k (12.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($1k loan paydown + $5k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#145 in CO) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, schools F, amenities F.
• Springfield School District No. Re-4 (rural): math 20% / reading 25% proficiency, ranked #149 of 176 in CO (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1917 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 15 active listings in the ZIP; 5 units permitted in Baca County in 2024 (0 in 5+ unit buildings).
• Baca County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y ago; this cycle's ask has dropped $35k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $46k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 615 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.