1745 White Ave

Grand Junction, CO 81501

$499,900D-

3 bd · 3.0 ba · 1,768 sqft · Built 1955 · MultiFamily · Active · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,637/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$342
• HOA: −$0
• Vac / Maint / Mgmt: −$764
• Net cashflow: $-91/mo
• Annual: $-1,088/yr
• Cap rate: 6.08%
• Cash-on-cash: -0.78%
• DSCR: 0.97
• 1% rule: 0.73%
• Cash to close: $139,972

Investor read

• This is a 3 × 1-bed/1-bath units multifamily listed at $500k.
• At list price, monthly cash flow is $-91 ($-1k/yr) — negative. Per door: $-30/mo.
• To cash-flow at today's rent, offer at most $484k (3.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $364k (27.2% below list).
• It's been on market 62 days — a 6% lower offer ($470k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $364k (27.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#15 in CO, #2,222 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, housing A; Watch: employment D+, crime F.
• Mesa County Valley School District No. 51 (suburban): math 26% / reading 38% proficiency, ranked #43 of 86 in CO (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Chipeta Elementary School (math 17% / reading 22%, grade F, #706 of 966 statewide, top 75%, 375 students, 66% FRL); East Middle School (math 25% / reading 33%, grade F, #138 of 270 statewide, top 52%, 427 students, 51% FRL); Grand Junction High School (math 25% / reading 53%, grade F, #188 of 381 statewide, top 49%, 1,522 students, 36% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.9%/yr); 161 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 1,014 units permitted in Mesa County in 2024 (240 in 5+ unit buildings).
• Current owner paid $380k; 32% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.1% in Grand Junction — 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.
• At $3,637/mo this rent would consume 81% of the median local household income ($54k/yr) (locally 1317% 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 62 days. Have you received any prior offers? Is the seller open to a 27% 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 1955 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?