Condo & Townhome Financing in Lake City, CO

Condo & Townhome investing in Lake City

Condos and townhomes are the lowest-basis way into the Lake City 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 Lake City median of $328,000, a condo or townhome prices near $236,160, roughly a quarter under the detached median. Minimum down is 20% ($47,232), leaving a loan of $188,928. Estimated all-in PITIA runs about $1,756 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 Lake City median for this product: an estimated cap rate of 5.97%, and monthly cash flow of $140 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.