7291 N Scottsdale Rd #3013

Scottsdale, AZ 85253

$540,000D-

2 bd · 3.0 ba · 1,244 sqft · Built 2009 · Condo · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,439/mo
• Mortgage (P&I): −$2,832
• Tax + insurance: −$424
• HOA: −$742
• Vac / Maint / Mgmt: −$722
• Net cashflow: $-1,280/mo
• Annual: $-15,366/yr
• Cap rate: 3.45%
• Cash-on-cash: -10.16%
• DSCR: 0.55
• 1% rule: 0.64%
• Cash to close: $151,200

Investor read

• This is a 2-bed/3.0-bath condo listed at $540k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $314k (41.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $344k (36.3% below list).
• It's been on market 27 days — a 2% lower offer ($532k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $314k (41.9% below list) — sets the bar for cash-flow.
• In year one you build about $58k of equity ($4k loan paydown + $54k appreciation (10.0% local appreciation)).
• Location reads 80/100 on livability (#4 in AZ, #1,756 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, cost of living F.
• Scottsdale Unified District (4240) (urban): math 53% / reading 55% proficiency, ranked #30 of 249 in AZ (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Kiva Elementary School (math 66% / reading 67%, grade B+, #79 of 1,109 statewide, top 7%, 527 students, 10% FRL); Mohave Middle School (math 45% / reading 48%, grade D+, #43 of 218 statewide, top 20%, 799 students, 31% FRL); Saguaro High School (math 37% / reading 41%, grade F, #78 of 381 statewide, top 20%, 1,466 students, 25% FRL) — zoned schools at 22% FRL track the district average.
• Watch-outs: HOA is 22% of rent.
• Market conditions: Rents rising fast (+8.6%/yr); 349 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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.
• By year 2, paydown + projected appreciation supports a ~$93k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.4% vs local median 2.5% in Scottsdale — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.