1110 North Henness Rd 2318 Plan

Casa Grande, AZ 85122

$169,995D

2 bd · 2.0 ba · 1,189 sqft · Built — · Manufactured · Active · 201 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,389/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$283
• HOA: −$0
• Vac / Maint / Mgmt: −$292
• Net cashflow: $-77/mo
• Annual: $-930/yr
• Cap rate: 5.75%
• Cash-on-cash: -1.95%
• DSCR: 0.91
• 1% rule: 0.82%
• Cash to close: $47,599

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $170k. Condition is rated good.
• At list price, monthly cash flow is $-77 ($-930/yr) — negative.
• To cash-flow at today's rent, offer at most $159k (6.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (18.3% below list).
• It's been on market 201 days — a 12% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (18.3% below list) — sets the bar for 1% rule.
• 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 58/100 on livability (#220 in AZ) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime D+, employment D+, amenities F.
• Casa Grande Union High School District (4453) (suburban): math 14% / reading 21% proficiency, ranked #193 of 249 in AZ (top 78%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Mesquite Elementary School (math 12% / reading 17%, grade F, #898 of 1,109 statewide, top 83%, 467 students, 85% FRL); Cactus Middle School (math 11% / reading 19%, grade F, #156 of 218 statewide, top 72%, 779 students, 63% FRL); Vista Grande High School (math 10% / reading 16%, grade F, #279 of 381 statewide, top 73%, 1,790 students, 54% FRL).
• Market conditions: Rents rising fast (+4.6%/yr); 901 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 47% of comp listings sitting > 30 days — soft ceiling on asking rent; 9,504 units permitted in Pinal County in 2024 (776 in 5+ unit buildings).
• Cap rate 5.7% vs local median 3.9% in Casa Grande — 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 201 days. Have you received any prior offers? Is the seller open to a 18% 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.