457 S 500 E

Provo, UT 84606

$850,000C+

6 bd · 6.0 ba · 3,278 sqft · Built 1925 · MultiFamily · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,209/mo
• Mortgage (P&I): −$4,457
• Tax + insurance: −$838
• HOA: −$0
• Vac / Maint / Mgmt: −$1,934
• Net cashflow: $1,980/mo
• Annual: $23,759/yr
• Cap rate: 9.09%
• Cash-on-cash: 9.98%
• DSCR: 1.44
• 1% rule: 1.08%
• Cash to close: $238,000

Investor read

• This is a 6 × 7-bed/6.0-bath units multifamily listed at $850k.
• At list price, monthly cash flow is $2k ($24k/yr) — positive. Per door: $330/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $850k).
• It's been on market 22 days — a 2% lower offer ($837k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $837k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#15 in UT, #602 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A.
• Provo District (urban): math 38% / reading 46% proficiency, ranked #44 of 80 in UT (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Provo Peaks School (math 35% / reading 37%, grade F, #375 of 585 statewide, top 65%, 551 students, 59% FRL); Centennial Middle (math 32% / reading 50%, grade F, #66 of 138 statewide, top 49%, 1,094 students, 32% FRL); Timpview High (math 35% / reading 61%, grade D, #35 of 171 statewide, top 20%, 2,341 students, 27% FRL) — zoned schools at 40% FRL track the district average.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.2%/yr); 130 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 6,326 units permitted in Utah County in 2024 (1,053 in 5+ unit buildings).
• Utah County population projected at +49% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 21y ago; this cycle's ask has dropped $50k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $322k; list at $850k implies a 164% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; major wildfire risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $9,209/mo this rent would consume 209% of the median local household income ($53k/yr) (locally 1982% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.