12855 CR 255

Silver Cliff, CO 81252

$259,900D

3 bd · 2.0 ba · 1,976 sqft · Built 1999 · SingleFamily · Pending · 206 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,172/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$258
• HOA: −$0
• Vac / Maint / Mgmt: −$456
• Net cashflow: $95/mo
• Annual: $1,139/yr
• Cap rate: 6.73%
• Cash-on-cash: 1.56%
• DSCR: 1.07
• 1% rule: 0.84%
• Cash to close: $72,772

Investor read

• This is a 3-bed/2.0-bath single-family listed at $260k.
• At list price, monthly cash flow is $95 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $217k (16.4% below list).
• It's been on market 206 days — a 12% lower offer ($229k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $217k (16.4% 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 $8k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#253 in CO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: housing D, crime F, amenities F.
• Custer County School District Consolidate 1 (rural): math 30% / reading 50% proficiency, ranked #55 of 176 in CO (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Custer County Elementary School (math 30% / reading 34%, grade F, #469 of 966 statewide, top 49%, 165 students, 42% FRL); Custer Middle School (math 17% / reading 44%, grade F, #127 of 270 statewide, top 47%, 75 students, 33% FRL); Custer County High School (math 50% / reading 70%, grade C+, #53 of 381 statewide, top 17%, 114 students, 33% FRL) — zoned schools at 36% FRL track the district average.
• Market conditions: 283 active listings in the ZIP; 117 units permitted in Custer County in 2024 (0 in 5+ unit buildings).
• 9 sale attempts since 5y ago; this cycle's ask is 26% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.7% vs local median 2.5% in Silver Cliff — 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

• It's been on market 206 days. Have you received any prior offers? Is the seller open to a 16% 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?
• 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?
• 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.