317 W 8th St #20

Palisade, CO 81526

$89,900F

2 bd · 2.0 ba · 840 sqft · Built 2024 · Manufactured · Active · 132 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,504/mo
• Mortgage (P&I): −$471
• Tax + insurance: −$150
• HOA: −$650
• Vac / Maint / Mgmt: −$316
• Net cashflow: $-83/mo
• Annual: $-997/yr
• Cap rate: 5.18%
• Cash-on-cash: -3.96%
• DSCR: 0.82
• 1% rule: 1.67%
• Cash to close: $25,172

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $90k.
• At list price, monthly cash flow is $-83 ($-997/yr) — negative.
• To cash-flow at today's rent, offer at most $78k (13.4% below list).
• Meets the 1% rule at list price ($2k rent vs $90k).
• It's been on market 132 days — a 12% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $78k (13.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#71 in CO) — a middle-class / working-renter tenant base. Strengths: health & safety A+, crime A, cost of living A-; Watch: amenities D, commute F, employment 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: Taylor Elementary School (math 27% / reading 47%, grade F, #405 of 966 statewide, top 43%, 321 students, 33% FRL); Mount Garfield Middle School (math 20% / reading 31%, grade F, #164 of 270 statewide, top 61%, 581 students, 64% FRL); Palisade High School (math 35% / reading 57%, grade D-, #138 of 381 statewide, top 36%, 1,125 students, 42% FRL).
• Watch-outs: HOA is 43% of rent.
• Market conditions: 69 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 1,014 units permitted in Mesa County in 2024 (240 in 5+ unit buildings).
• 4 sale attempts since 2y ago; this cycle's ask has dropped $30k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 8→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 1.6% in Palisade — 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.

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 132 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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.