489 S Highway 55

Price, UT 84501

$209,000F

3 bd · 2.0 ba · 1,069 sqft · Built 1950 · Other · Under Contract · 95 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,066/mo
• Mortgage (P&I): −$1,096
• Tax + insurance: −$206
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $-460/mo
• Annual: $-5,518/yr
• Cap rate: 3.65%
• Cash-on-cash: -9.43%
• DSCR: 0.58
• 1% rule: 0.51%
• Cash to close: $58,520

Investor read

• This is a 3-bed/2.0-bath other listed at $209k.
• At list price, monthly cash flow is $-460 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $128k (38.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $107k (49.0% below list).
• It's been on market 95 days — a 9% lower offer ($190k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (49.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#102 in UT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: schools C-, amenities F, commute F.
• Carbon District (town): math 36% / reading 43% proficiency, ranked #53 of 80 in UT (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 146 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 196 units permitted in Carbon County in 2024 (168 in 5+ unit buildings).
• Carbon County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 9y ago; this cycle's ask has dropped $30k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 95 days. Have you received any prior offers? Is the seller open to a 49% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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.
• 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.