3650 S Federal Blvd

Sheridan, CO 80110

$123,500B-

3 bd · 1.0 ba · 1,209 sqft · Built 2002 · Land · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,102/mo
• Mortgage (P&I): −$648
• Tax + insurance: −$272
• HOA: −$0
• Vac / Maint / Mgmt: −$442
• Net cashflow: $741/mo
• Annual: $8,892/yr
• Cap rate: 14.14%
• Cash-on-cash: 28.02%
• DSCR: 2.25
• 1% rule: 1.70%
• Cash to close: $34,580

Investor read

• This is a 3-bed/1.0-bath land listed at $124k.
• At list price, monthly cash flow is $741 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $124k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $854 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#197 in CO) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A-; Watch: employment C-, amenities D+, crime F.
• Sheridan School District No. 2 (suburban): math 4% / reading 20% proficiency, ranked #85 of 86 in CO (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 84% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Sheridan High School (math 8% / reading 27%, grade F, #340 of 381 statewide, top 90%, 326 students, 90% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents soft (-0.8%/yr); 106 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 3,927 units permitted in Arapahoe County in 2024 (1,525 in 5+ unit buildings).
• Arapahoe County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $35k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.1% vs local median 4.0% 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.

Questions for listing agent

• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.