124 W 880 S

Provo, UT 84601

$370,000D+

3 bd · 2.0 ba · 1,240 sqft · Built 1982 · MultiFamily · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,242/mo
• Mortgage (P&I): −$1,940
• Tax + insurance: −$310
• HOA: −$0
• Vac / Maint / Mgmt: −$681
• Net cashflow: $311/mo
• Annual: $3,732/yr
• Cap rate: 7.30%
• Cash-on-cash: 3.60%
• DSCR: 1.16
• 1% rule: 0.88%
• Cash to close: $103,600

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $370k.
• At list price, monthly cash flow is $311 ($4k/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 $324k (12.4% below list).
• It's been on market 25 days — a 2% lower offer ($364k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $324k (12.4% 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 $11k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#15 in UT, #602 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A.
• Provo District (urban): math 38% / reading 46% proficiency, ranked #44 of 80 in UT (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Spring Creek School (math 35% / reading 38%, grade F, #371 of 585 statewide, top 64%, 456 students, 60% FRL); Centennial Middle (math 32% / reading 50%, grade F, #66 of 138 statewide, top 49%, 1,094 students, 32% FRL); Timpview High (math 35% / reading 61%, grade D, #35 of 171 statewide, top 20%, 2,341 students, 27% FRL) — zoned schools at 40% FRL track the district average.
• Market conditions: Rents rising fast (+5.8%/yr); 221 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 5 sale attempts since 12y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $3,242/mo this rent would consume 58% of the median local household income ($67k/yr) (locally 1332% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.