Plan 6 Plan

Spanish Springs, NV 89441

$639,900F

4 bd · 3.0 ba · 2,616 sqft · Built — · SingleFamily · Active · 319 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,543/mo
• Mortgage (P&I): −$3,701
• Tax + insurance: −$1,176
• HOA: −$0
• Vac / Maint / Mgmt: −$1,164
• Net cashflow: $-498/mo
• Annual: $-5,981/yr
• Cap rate: 5.45%
• Cash-on-cash: -3.03%
• DSCR: 0.87
• 1% rule: 0.79%
• Cash to close: $197,619

Investor read

• This is a 4-bed/3.0-bath single-family listed at $640k. Condition is rated poor.
• At list price, monthly cash flow is $-498 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $634k (1.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $554k (13.4% below list).
• It's been on market 319 days — a 12% lower offer ($563k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $554k (13.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#35 in NV) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F, cost of living F.
• Washoe County School District (urban): math 30% / reading 44% proficiency, ranked #6 of 17 in NV (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Alyce Taylor Elementary (math 54% / reading 55%, grade C, #42 of 402 statewide, top 10%, 452 students, 27% FRL); Yvonne Shaw Middle School (math 33% / reading 57%, grade D, #14 of 109 statewide, top 13%, 712 students, 20% FRL); Spanish Springs High School (math 18% / reading 41%, grade F, #67 of 131 statewide, top 53%, 2,057 students, 17% FRL) — zoned schools average 22% FRL vs 42% district-wide (20 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 143 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 4,085 units permitted in Washoe County in 2024 (1,634 in 5+ unit buildings).
• Washoe County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 3.2% in Spanish Springs — 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 319 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant wear and tear visible in the satellite image.
• Major: exterior siding — Significant peeling and discoloration visible in the listing photos.
• Major: exterior paint — Significant peeling and discoloration visible in the listing photos.
• Major: landscaping — Sparse vegetation and minimal curb appeal visible in the listing photos.
• Major: fencing — No fencing is visible in the listing photos, but the overall appearance suggests it may be in poor condition.
• Major: HVAC condensers — The satellite image shows HVAC condensers, which may be in poor condition if the roof is in poor condition. Further inspection is needed to confirm this.