4407 S 2375 E

Cedar Highlands, UT 84720

$167,000D+

3 bd · 3.0 ba · 2,332 sqft · Built 2007 · Other · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,724/mo
• Mortgage (P&I): −$876
• Tax + insurance: −$322
• HOA: −$0
• Vac / Maint / Mgmt: −$362
• Net cashflow: $164/mo
• Annual: $1,965/yr
• Cap rate: 7.47%
• Cash-on-cash: 4.20%
• DSCR: 1.19
• 1% rule: 1.03%
• Cash to close: $46,760

Investor read

• This is a 3-bed/3.0-bath other listed at $167k.
• At list price, monthly cash flow is $164 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $167k).
• It's been on market 73 days — a 6% lower offer ($157k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $157k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Iron District (town): math 40% / reading 44% proficiency, ranked #42 of 80 in UT (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cedar East School (math 35% / reading 35%, grade F, #388 of 585 statewide, top 67%, 551 students, 56% FRL); Cedar Middle (math 43% / reading 49%, grade D+, #41 of 138 statewide, top 30%, 1,115 students, 31% FRL); Cedar City High (math 24% / reading 48%, grade F, #90 of 171 statewide, top 53%, 1,366 students, 28% FRL) — zoned schools at 38% FRL track the district average.
• Market conditions: Rents rising (+1.3%/yr); 624 active listings in the ZIP; 655 units permitted in Iron County in 2024 (0 in 5+ unit buildings).
• Iron County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 3y ago; this cycle's ask has dropped $83k (33%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• This rent runs 31% of the median local income ($68k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• 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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.