23455 S 221st St

Queen Creek, AZ 85142

$405,000D-

4 bd · 3.0 ba · 1,681 sqft · Built 2004 · SingleFamily · Active · 122 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,609/mo
• Mortgage (P&I): −$2,124
• Tax + insurance: −$300
• HOA: −$82
• Vac / Maint / Mgmt: −$548
• Net cashflow: $-445/mo
• Annual: $-5,341/yr
• Cap rate: 4.97%
• Cash-on-cash: -4.71%
• DSCR: 0.79
• 1% rule: 0.64%
• Cash to close: $113,400

Investor read

• This is a 4-bed/3.0-bath single-family listed at $405k.
• At list price, monthly cash flow is $-445 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $326k (19.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $261k (35.6% below list).
• It's been on market 122 days — a 12% lower offer ($356k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $261k (35.6% 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 $12k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#27 in AZ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: health & safety C-, commute F, cost of living F.
• Queen Creek Unified District (4245) (suburban): math 55% / reading 53% proficiency, ranked #25 of 249 in AZ (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Gateway Polytechnic Academy (math 58% / reading 52%, grade C, #202 of 1,109 statewide, top 19%, 1,034 students, 10% FRL); Queen Creek Junior High School (math 49% / reading 53%, grade C, #23 of 218 statewide, top 11%, 554 students, 17% FRL); Queen Creek High School (math 43% / reading 45%, grade F, #64 of 381 statewide, top 17%, 2,233 students, 15% FRL).
• Market conditions: Rents flat; 863 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 3 sale attempts since 15y ago; this cycle's ask has dropped $33k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $248k; list at $405k implies a 63% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; 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 2.6% in Queen Creek — 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?
• It's been on market 122 days. Have you received any prior offers? Is the seller open to a 36% 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 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.