534 & 536 Spruce St

Aspen, CO 81611

$7,495,000D-

8 bd · 5.0 ba · 4,308 sqft · Built 1977 · MultiFamily · Active · 144 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $19,107/mo
• Mortgage (P&I): −$39,305
• Tax + insurance: −$12,492
• HOA: −$0
• Vac / Maint / Mgmt: −$4,012
• Net cashflow: $-36,702/mo
• Annual: $-440,421/yr
• Cap rate: 0.42%
• Cash-on-cash: -20.99%
• DSCR: 0.07
• 1% rule: 0.25%
• Cash to close: $2,098,600

Investor read

• This is a 1×4bd/2.5ba + 1×3bd/2.5ba units multifamily listed at $7.50M.
• At list price, monthly cash flow is $-37k ($-440k/yr) — negative. Per door: $-18k/mo.
• To cash-flow at today's rent, offer at most $2.18M (70.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.91M (74.5% below list).
• It's been on market 144 days — a 12% lower offer ($6.60M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.91M (74.5% below list) — sets the bar for 1% rule.
• In year one you build about $801k of equity ($52k loan paydown + $750k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#142 in CO) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, schools B+; Watch: amenities F, cost of living F, health & safety F.
• Aspen School District No. 1 In The County Of Pitkin And Sta (rural): math 36% / reading 56% proficiency, ranked #18 of 86 in CO (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 4% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising fast (+22.1%/yr); 324 active listings in the ZIP; solid renter incomes; 145 units permitted in Pitkin County in 2024 (89 in 5+ unit buildings).
• Pitkin County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $455k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$1.29M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $19,107/mo this rent would consume 277% of the median local household income ($83k/yr) (locally 566% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 144 days. Have you received any prior offers? Is the seller open to a 75% concession, seller financing, or rate buy-down credit?
• 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 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?