61 San Isabel Blvd

Walsenburg, CO 81089

$139,000D-

2 bd · 2.0 ba · 1,288 sqft · Built 2000 · SingleFamily · Pending · 223 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,061/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$121
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-12/mo
• Annual: $-148/yr
• Cap rate: 6.19%
• Cash-on-cash: -0.38%
• DSCR: 0.98
• 1% rule: 0.76%
• Cash to close: $38,920

Investor read

• This is a 2-bed/2.0-bath single-family listed at $139k.
• At list price, monthly cash flow is $-12 ($-148/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (1.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (23.7% below list).
• It's been on market 223 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (23.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $961 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#80 in CO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities F, commute F, employment F.
• Huerfano School District Re-1 (town): math 9% / reading 24% proficiency, ranked #163 of 176 in CO (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Peakview School (math 5% / reading 17%, grade F, #879 of 966 statewide, top 94%, 244 students, 84% FRL); John Mall Jr/Sr High School (math 24% / reading 24%, grade F, #266 of 381 statewide, top 79%, 171 students, 81% FRL).
• Market conditions: 360 active listings in the ZIP; 51 units permitted in Huerfano County in 2024 (0 in 5+ unit buildings).
• Huerfano County population projected at -36% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 13 sale attempts since 23y ago; this cycle's ask has dropped $40k (22%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $84k; list at $139k implies a 65% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 1.7% in Walsenburg — 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

• 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 223 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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?
• 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.