8 E 8th St

Flagler, CO 80815

$320,000D-

3 bd · 2.0 ba · 2,204 sqft · Built 2020 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,035/mo
• Mortgage (P&I): −$1,678
• Tax + insurance: −$313
• HOA: −$0
• Vac / Maint / Mgmt: −$427
• Net cashflow: $-383/mo
• Annual: $-4,597/yr
• Cap rate: 4.86%
• Cash-on-cash: -5.13%
• DSCR: 0.77
• 1% rule: 0.64%
• Cash to close: $89,600

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $320k.
• At list price, monthly cash flow is $-383 ($-5k/yr) — negative. Per door: $-192/mo.
• To cash-flow at today's rent, offer at most $252k (21.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $204k (36.4% below list).
• It's been on market 28 days — a 2% lower offer ($315k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $204k (36.4% below list) — sets the bar for 1% rule.
• In year one you build about $33k of equity ($2k loan paydown + $31k appreciation (9.7% local appreciation)).
• Location reads 56/100 on livability (#323 in CO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: schools F, crime F, amenities F.
• Arriba-Flagler Consolidated School District No. 20 (rural): math 20% / reading 35% proficiency, ranked #125 of 176 in CO (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 9 active listings in the ZIP; 3 units permitted in Kit Carson County in 2024 (0 in 5+ unit buildings).
• Kit Carson County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 6y ago; this cycle's ask is 19% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $270k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$54k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• 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?
• 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.