22815 N Arrellaga Dr

Sun City West, AZ 85375

$374,900D

2 bd · 3.0 ba · 1,612 sqft · Built 2004 · SingleFamily · Active · 178 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,692/mo
• Mortgage (P&I): −$1,966
• Tax + insurance: −$330
• HOA: −$237
• Vac / Maint / Mgmt: −$565
• Net cashflow: $-406/mo
• Annual: $-4,877/yr
• Cap rate: 4.99%
• Cash-on-cash: -4.65%
• DSCR: 0.79
• 1% rule: 0.72%
• Cash to close: $104,972

Investor read

• This is a 2-bed/3.0-bath single-family listed at $375k.
• At list price, monthly cash flow is $-406 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $303k (19.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $269k (28.2% below list).
• It's been on market 178 days — a 12% lower offer ($330k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $269k (28.2% 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 63/100 on livability (#106 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A+, crime B, cost of living B; Watch: health & safety D, amenities F, commute F.
• Peoria Unified School District (4237) (suburban): math 36% / reading 42% proficiency, ranked #64 of 249 in AZ (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Zuni Hills Elementary School (math 36% / reading 44%, grade F, #394 of 1,109 statewide, top 36%, 880 students, 19% FRL); Liberty High School (math 36% / reading 37%, grade F, #88 of 381 statewide, top 24%, 2,603 students, 9% FRL) — zoned schools average 14% FRL vs 35% district-wide (21 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising fast (+7.0%/yr); 124 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 8d on market — plan ~1-2 weeks tenant-placement turnaround); 36,011 units permitted in Maricopa County in 2024 (12,801 in 5+ unit buildings).
• Maricopa County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 10 sale attempts since 21y ago; this cycle's ask has dropped $45k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $230k; list at $375k implies a 63% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.0% vs local median 4.1% in Sun City West — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $2,692/mo this rent would consume 51% of the median local household income ($64k/yr) (locally 691% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 178 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.