Condo & Townhome Financing in Paonia, CO

Condo & Townhome investing in Paonia

Condos and townhomes are the lowest-basis way into the Paonia rental market, and the trade is that a second set of underwriting rules applies to the building, not just to you. Every DSCR condo file in Colorado runs a project review: owner-occupancy ratio, investor concentration, HOA delinquency rate, reserve funding, and any pending litigation or special assessment.

At the Paonia median of $395,000, a condo or townhome prices near $284,400, roughly a quarter under the detached median. Minimum down is 20% ($56,880), leaving a loan of $227,520. Estimated all-in PITIA runs about $2,044 per month, and that figure already carries an HOA allowance of $240/month — HOA dues count in the DSCR denominator, which is exactly why condo files that look cheap on price often ratio worse than a detached comp.

Returns and structure

Return metrics at the Paonia median for this product: an estimated cap rate of 6.61%, and monthly cash flow of $484 positive at 20% down. A file that cash-flows at the minimum down payment is the exception in Colorado right now, and it gives you room to absorb an insurance renewal without going to the reserve account.