621/623 Kentucky Ave

Sheridan, WY 82801

$311,000D

2 bd · 1.0 ba · 884 sqft · Built 1964 · MultiFamily · Active · 137 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,582/mo
• Mortgage (P&I): −$1,631
• Tax + insurance: −$518
• HOA: −$0
• Vac / Maint / Mgmt: −$542
• Net cashflow: $-109/mo
• Annual: $-1,314/yr
• Cap rate: 5.87%
• Cash-on-cash: -1.51%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $87,080

Investor read

• This is a 2-bed/1.0-bath multifamily listed at $311k. Condition is rated fair.
• At list price, monthly cash flow is $-109 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $295k (5.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $258k (17.0% below list).
• It's been on market 137 days — a 12% lower offer ($274k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $258k (17.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#7 in WY, #2,337 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities C-, employment C-, commute F.
• Sheridan County School District #2 (town): math 68% / reading 72% proficiency, ranked #1 of 41 in WY (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Highland Park Elementary (math 77% / reading 72%, grade A, #6 of 151 statewide, top 7%, 295 students, 16% FRL); Sheridan Junior High School (math 60% / reading 73%, grade A-, #9 of 55 statewide, top 15%, 843 students, 28% FRL); Sheridan High School (math 71% / reading 75%, grade B+, #4 of 75 statewide, top 4%, 1,092 students, 24% FRL) — zoned schools at 22% FRL track the district average.
• Market conditions: 514 active listings in the ZIP; 309 units permitted in Sheridan County in 2024 (92 in 5+ unit buildings).
• Sheridan County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 6y 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: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 2.4% in Sheridan — 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.
• This rent runs 42% of the median local income ($73k/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 137 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1964 — 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 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage visible
• Major: exterior siding — Peeling paint, siding damage
• Minor: interior walls — Some wear