208 Madison Dr

Bennett, CO 80102

$375,000C-

4 bd · 2.0 ba · 1,416 sqft · Built 1982 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,000/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$334
• HOA: −$0
• Vac / Maint / Mgmt: −$630
• Net cashflow: $70/mo
• Annual: $837/yr
• Cap rate: 6.52%
• Cash-on-cash: 0.80%
• DSCR: 1.04
• 1% rule: 0.80%
• Cash to close: $105,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $375k.
• At list price, monthly cash flow is $70 ($837/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (20.0% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $300k (20.0% below list) — sets the bar for 1% rule.
• In year one you build about $40k of equity ($3k loan paydown + $38k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#263 in CO) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A-; Watch: cost of living D+, amenities F, commute F.
• Bennett School District No. 29J (rural): math 13% / reading 31% proficiency, ranked #69 of 86 in CO (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Bennett Preschool (71 students, 11% FRL); Bennett Middle School (math 8% / reading 42%, grade F, #168 of 270 statewide, top 63%, 304 students, 38% FRL); Bennett High School (math 22% / reading 47%, grade F, #209 of 381 statewide, top 56%, 427 students, 25% FRL) — zoned schools at 25% FRL track the district average.
• Market conditions: 212 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 9 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $105k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$64k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.5% vs local median 4.7% in Bennett — 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.

Questions for listing agent

• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.