220 Mount View Ln

Colorado Springs, CO 80907

$39,950F

2 bd · 1.0 ba · 684 sqft · Built 1969 · Land · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,222/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$155
• HOA: −$695
• Vac / Maint / Mgmt: −$257
• Net cashflow: $-95/mo
• Annual: $-1,136/yr
• Cap rate: 3.45%
• Cash-on-cash: -10.15%
• DSCR: 0.55
• 1% rule: 3.06%
• Cash to close: $11,186

Investor read

• This is a 2-bed/1.0-bath land listed at $40k.
• At list price, monthly cash flow is $-95 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $33k (16.6% below list).
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 30 days — a 2% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $33k (16.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#23 in CO, #2,639 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, housing A+, health & safety A+; Watch: cost of living C-, crime F.
• Colorado Springs School District No. 11 In The County Of E (urban): math 20% / reading 37% proficiency, ranked #56 of 86 in CO (top 65%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Stratton Elementary School (math 54% / reading 57%, grade C+, #143 of 966 statewide, top 15%, 286 students, 36% FRL); North Middle School (math 21% / reading 42%, grade F, #121 of 270 statewide, top 46%, 590 students, 63% FRL); Palmer High School (math 26% / reading 58%, grade F, #155 of 381 statewide, top 42%, 1,384 students, 55% FRL) — zoned schools at 52% FRL track the district average.
• Zoned-school proficiency averages 43% at this address vs 28% district-wide (+15 pts) — the actual schools serving this property are materially stronger than the Colorado Springs School District No. 11 In The County Of E average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 4.2% of price; HOA is 57% of rent.
• Market conditions: Rents flat; 195 active listings in the ZIP; 28 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 3,906 units permitted in El Paso County in 2024 (872 in 5+ unit buildings).
• El Paso County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 11 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?