1500 Oak St #19

Ouray, CO 81427

$159,000B-

3 bd · 2.0 ba · 1,592 sqft · Built 2006 · Manufactured · Active · 165 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,491/mo
• Mortgage (P&I): −$834
• Tax + insurance: −$205
• HOA: −$0
• Vac / Maint / Mgmt: −$313
• Net cashflow: $140/mo
• Annual: $1,676/yr
• Cap rate: 7.85%
• Cash-on-cash: 5.55%
• DSCR: 1.25
• 1% rule: 0.94%
• Cash to close: $44,520

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $159k.
• At list price, monthly cash flow is $140 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $149k (6.2% below list).
• It's been on market 165 days — a 12% lower offer ($140k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (12.0% below list) — sets the bar for market timing.
• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#165 in CO) — a middle-class / working-renter tenant base. Strengths: crime A+, employment B+; Watch: amenities D-, commute F, cost of living F.
• Ouray School District No. R-1 Of The County Of Ouray And (rural): math 50% / reading 65% proficiency, ranked #10 of 176 in CO (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Ouray Elementary School (math 34% / reading 50%, grade F, #321 of 966 statewide, top 35%, 81 students, 16% FRL); Ouray Middle School (math 24% / reading 75%, grade C, #41 of 270 statewide, top 15%, 56 students, 18% FRL); Ouray Senior High School (math 75% / reading 75%, grade A-, #9 of 381 statewide, top 3%, 40 students, 20% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 46 active listings in the ZIP; 71 units permitted in Ouray County in 2024 (18 in 5+ unit buildings).
• Ouray County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $20k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.8% vs local median 0.4% in Ouray — 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

• It's been on market 165 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 A-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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.