5598 Richard Dr

Taylor, AZ 85937

$215,000D

2 bd · 1.0 ba · 672 sqft · Built 2025 · SingleFamily · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,514/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$358
• HOA: −$0
• Vac / Maint / Mgmt: −$318
• Net cashflow: $-290/mo
• Annual: $-3,482/yr
• Cap rate: 4.67%
• Cash-on-cash: -5.78%
• DSCR: 0.74
• 1% rule: 0.70%
• Cash to close: $60,200

Investor read

• This is a 2-bed/1.0-bath single-family listed at $215k.
• At list price, monthly cash flow is $-290 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $173k (19.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $151k (29.6% below list).
• It's been on market 45 days — a 3% lower offer ($209k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $151k (29.6% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($1k loan paydown + $22k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#71 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A, crime B; Watch: employment D, amenities F, commute F.
• Snowflake Unified District (4391) (town): math 55% / reading 53% proficiency, ranked #36 of 249 in AZ (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Highland Primary School (math 62% / reading 52%, grade C+, #180 of 1,109 statewide, top 17%, 525 students, 45% FRL); Snowflake Junior High School (math 51% / reading 52%, grade C, #22 of 218 statewide, top 10%, 486 students, 44% FRL); Snowflake High School (math 47% / reading 52%, grade D, #38 of 381 statewide, top 11%, 943 students, 30% FRL) — zoned schools at 40% FRL track the district average.
• Market conditions: 297 active listings in the ZIP; 485 units permitted in Navajo County in 2024 (11 in 5+ unit buildings).
• Navajo County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $8k; list at $215k implies a 2767% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.7% vs local median 2.9% in Taylor — 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 45 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.