5584 County Road 600 #114

Pagosa Springs, CO 81147

$299,999D-

2 bd · 2.0 ba · 1,335 sqft · Built 1983 · Condo · Active · 143 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,350/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$199
• HOA: −$0
• Vac / Maint / Mgmt: −$494
• Net cashflow: $84/mo
• Annual: $1,011/yr
• Cap rate: 6.63%
• Cash-on-cash: 1.20%
• DSCR: 1.05
• 1% rule: 0.78%
• Cash to close: $84,000

Investor read

• This is a 2-bed/2.0-bath condo listed at $300k.
• At list price, monthly cash flow is $84 ($1k/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 $235k (21.7% below list).
• It's been on market 143 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $235k (21.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 55/100 on livability (#345 in CO) — a working-class tenant base; expect higher turnover. Strengths: cost of living B+; Watch: schools F, crime F, amenities F.
• Archuleta County School District No. 50 JT (town): math 20% / reading 36% proficiency, ranked #57 of 86 in CO (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 701 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 141 units permitted in Archuleta County in 2024 (0 in 5+ unit buildings).
• 5 sale attempts since 3y ago; this cycle's ask has dropped $30k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $80k; list at $300k implies a 275% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 1.5% in Pagosa Springs — 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 143 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.