222 N 1200 W #144

Orem, UT 84057

$89,000D

2 bd · 1.0 ba · 1,100 sqft · Built 1978 · Manufactured · Under Contract · 109 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,543/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$148
• HOA: −$725
• Vac / Maint / Mgmt: −$324
• Net cashflow: $-121/mo
• Annual: $-1,454/yr
• Cap rate: 4.66%
• Cash-on-cash: -5.84%
• DSCR: 0.74
• 1% rule: 1.73%
• Cash to close: $24,920

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $89k.
• At list price, monthly cash flow is $-121 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $71k (19.7% below list).
• Meets the 1% rule at list price ($2k rent vs $89k).
• It's been on market 109 days — a 9% lower offer ($81k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $71k (19.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#10 in UT, #389 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Alpine District (suburban): math 45% / reading 50% proficiency, ranked #25 of 80 in UT (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Cherry Hill School (math 44% / reading 43%, grade F, #260 of 585 statewide, top 46%, 733 students, 49% FRL); Orem Jr High (math 24% / reading 34%, grade F, #112 of 138 statewide, top 81%, 961 students, 41% FRL); Mountain View High (math 15% / reading 40%, grade F, #130 of 171 statewide, top 76%, 1,508 students, 33% FRL) — zoned schools average 41% FRL vs 18% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 33% at this address vs 48% district-wide (-14 pts) — the specific schools serving this property underperform the Alpine District average; the district grade overstates school quality for this exact location.
• Watch-outs: HOA is 47% of rent.
• Market conditions: Rents rising fast (+4.9%/yr); 143 active listings in the ZIP; 40 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; 6,326 units permitted in Utah County in 2024 (1,053 in 5+ unit buildings).
• Utah County population projected at +49% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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 109 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?