Tremonton — 300 S (6-plex)

About this deal

A six-unit 1911 building marketed at "over 10% cap rate." That figure is a gross yield, not a cap rate — the real math lands well below the asking price.

Six units in a 1911 building on 0.32 acres, 4,500 sqft in total, with 7 bedrooms and 6 baths across the property. Photos were supplied for units 1, 2, 4 and 5 only.

How we got our ARV

This one is valued on income, not on an after-repair sale. The "over 10% cap rate" claim is a gross yield: $61,000 of stated 2025 gross rent divided by the $499,000 ask is 12.2% gross. After a realistic 42% operating load for a 114-year-old building, NOI lands near $30,000–$35,000 — a 6–7% cap at the asking price. Capitalising that at 7.5% produces the $410,000 figure shown above, which is why the spread reads negative.

The underwrite

Public rental listings for this address show the real unit mix and asking rents: a 400 sqft studio at $495, a 600 sqft one-bedroom at $545, a 700 sqft one-bedroom at $695, a 750 sqft one-bedroom, a two-bedroom at $750 and a three-bedroom at $1,295. That is roughly $4,400/mo, or about $53,000 a year at full occupancy — below the $61,000 claimed.

Red Valley Real Estate presents every deal in the same format — asking price, ARV, and projected rent — so you can compare opportunities side by side. The ARV we show is our OWN conservative comp-based estimate, not the wholesaler's number: we comp every deal independently and lean to the low end, then show the wholesaler's claim beside ours so you can see the gap. Public-comp figures are marked provisional until our licensed agents confirm them against MLS sold data. We don't publish rehab numbers we can't stand behind: where you see a rehab range, it comes from our review of the property photos, and you can test your own assumptions with the calculators below or ask us to arrange a contractor walkthrough.