804 & 812 W Cedar Ct

Fruita, CO 81521

$1,270,000C

5 bd · 8.0 ba · 4,088 sqft · Built 1995 · MultiFamily · Pending · 143 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,367/mo
• Mortgage (P&I): −$6,660
• Tax + insurance: −$786
• HOA: −$0
• Vac / Maint / Mgmt: −$2,597
• Net cashflow: $2,323/mo
• Annual: $27,882/yr
• Cap rate: 8.49%
• Cash-on-cash: 7.84%
• DSCR: 1.35
• 1% rule: 0.97%
• Cash to close: $355,600

Investor read

• This is a 8 × 2-bed/1.0-bath units multifamily listed at $1.27M.
• At list price, monthly cash flow is $2k ($28k/yr) — positive. Per door: $290/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 $1.24M (2.6% below list).
• It's been on market 143 days — a 12% lower offer ($1.12M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.12M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $38k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#54 in CO) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, housing A-; Watch: commute F, employment D-.
• Mesa County Valley School District No. 51 (suburban): math 26% / reading 38% proficiency, ranked #43 of 86 in CO (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rim Rock Elementary School (math 37% / reading 37%, grade F, #405 of 966 statewide, top 43%, 332 students, 37% FRL); Fruita Middle School (math 22% / reading 29%, grade F, #164 of 270 statewide, top 61%, 496 students, 32% FRL); Fruita Monument High School (math 38% / reading 62%, grade D+, #95 of 381 statewide, top 25%, 1,304 students, 18% FRL).
• Market conditions: Rents rising fast (+4.7%/yr); 251 active listings in the ZIP; solid renter incomes; 1,014 units permitted in Mesa County in 2024 (240 in 5+ unit buildings).
• 4 sale attempts since 21y 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.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.5% vs local median 3.0% in Fruita — 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 $12,367/mo this rent would consume 168% of the median local household income ($88k/yr) (locally 187% 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 143 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?
• 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 D-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.