11350 Sarah Jane Ln #66

Prescott Valley, AZ 86327

$219,900D+

2 bd · 2.0 ba · 1,344 sqft · Built 2022 · SingleFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,752/mo
• Mortgage (P&I): −$1,153
• Tax + insurance: −$366
• HOA: −$0
• Vac / Maint / Mgmt: −$368
• Net cashflow: $-135/mo
• Annual: $-1,625/yr
• Cap rate: 5.55%
• Cash-on-cash: -2.64%
• DSCR: 0.88
• 1% rule: 0.80%
• Cash to close: $61,572

Investor read

• This is a 2-bed/2.0-bath single-family listed at $220k. Condition is rated good.
• At list price, monthly cash flow is $-135 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $200k (8.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $175k (20.3% below list).
• It's been on market 135 days — a 12% lower offer ($194k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $175k (20.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#126 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A-; Watch: amenities F, commute F, health & safety F.
• Humboldt Unified District (4469) (suburban): math 31% / reading 37% proficiency, ranked #94 of 249 in AZ (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Liberty Traditional School (math 56% / reading 53%, grade C, #208 of 1,109 statewide, top 19%, 785 students, 39% FRL); Bradshaw Mountain Middle School (math 24% / reading 39%, grade F, #78 of 218 statewide, top 36%, 280 students, 55% FRL); Bradshaw Mountain High School (math 15% / reading 26%, grade F, #222 of 381 statewide, top 59%, 1,697 students, 43% FRL) — zoned schools at 45% FRL track the district average.
• Market conditions: 319 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 93d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,062 units permitted in Yavapai County in 2024 (98 in 5+ unit buildings).
• Yavapai County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.6% vs local median 3.0% in Prescott Valley — 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 135 days. Have you received any prior offers? Is the seller open to a 20% 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.