325 W State Route 89a Rte W #4

Cottonwood, AZ 86326

$44,500C+

2 bd · 2.0 ba · 965 sqft · Built 1976 · Manufactured · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,330/mo
• Mortgage (P&I): −$233
• Tax + insurance: −$74
• HOA: −$0
• Vac / Maint / Mgmt: −$279
• Net cashflow: $744/mo
• Annual: $8,922/yr
• Cap rate: 26.34%
• Cash-on-cash: 71.61%
• DSCR: 4.19
• 1% rule: 2.99%
• Cash to close: $12,460

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $44k. Condition is rated good.
• At list price, monthly cash flow is $744 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $44k).
• It's been on market 25 days — a 2% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $44k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $308 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#7 in AZ, #2,176 nationally) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A, cost of living A; Watch: employment D, amenities F.
• Cottonwood-Oak Creek Elementary District (4487) (town): math 17% / reading 28% proficiency, ranked #174 of 249 in AZ (top 70%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Cottonwood Community School (math 8% / reading 13%, grade F, #993 of 1,109 statewide, top 91%, 500 students, 75% FRL); Mingus Union High School (math 22% / reading 27%, grade F, #154 of 381 statewide, top 53%, 1,226 students, 46% FRL).
• Market conditions: Rents soft (-0.2%/yr); 428 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $12k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 26.3% vs local median 3.8% in Cottonwood — 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

• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.