1216 Taft Ave Ave

Cheyenne, WY 82007

$649,000D-

9 bd · 4.0 ba · 3,520 sqft · Built 2004 · MultiFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,894/mo
• Mortgage (P&I): −$3,403
• Tax + insurance: −$571
• HOA: −$0
• Vac / Maint / Mgmt: −$1,028
• Net cashflow: $-108/mo
• Annual: $-1,296/yr
• Cap rate: 6.09%
• Cash-on-cash: -0.71%
• DSCR: 0.97
• 1% rule: 0.75%
• Cash to close: $181,720

Investor read

• This is a 3 × 3-bed/1.3-bath units multifamily listed at $649k.
• At list price, monthly cash flow is $-108 ($-1k/yr) — negative. Per door: $-36/mo.
• To cash-flow at today's rent, offer at most $630k (2.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $489k (24.6% below list).
• It's been on market 93 days — a 9% lower offer ($591k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $489k (24.6% 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 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: Bain Elementary (math 27% / reading 37%, grade F, #135 of 151 statewide, top 91%, 224 students, 43% FRL); Johnson Junior High School (math 29% / reading 42%, grade F, #53 of 55 statewide, top 96%, 647 students, 66% FRL); South High School (math 23% / reading 29%, grade F, #62 of 75 statewide, top 82%, 1,187 students, 56% FRL) — zoned schools average 55% FRL vs 32% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 31% at this address vs 44% district-wide (-13 pts) — the specific schools serving this property underperform the Laramie County School District #1 average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+5.1%/yr); 171 active listings in the ZIP; 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 6.1% vs local median 3.1% in Cheyenne — 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 $4,894/mo this rent would consume 100% of the median local household income ($59k/yr) (locally 854% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 93 days. Have you received any prior offers? Is the seller open to a 25% 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 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?