5509 W Rowel Rd

Phoenix, AZ 85083

$680,000D-

4 bd · 4.0 ba · 3,077 sqft · Built 2006 · SingleFamily · Active · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,225/mo
• Mortgage (P&I): −$3,566
• Tax + insurance: −$568
• HOA: −$108
• Vac / Maint / Mgmt: −$677
• Net cashflow: $-1,694/mo
• Annual: $-20,331/yr
• Cap rate: 3.30%
• Cash-on-cash: -10.68%
• DSCR: 0.52
• 1% rule: 0.47%
• Cash to close: $190,400

Investor read

• This is a 4-bed/4.0-bath single-family listed at $680k.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $381k (44.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $322k (52.6% below list).
• It's been on market 36 days — a 3% lower offer ($660k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $322k (52.6% below list) — sets the bar for 1% rule.
• In year one you build about $73k of equity ($5k loan paydown + $68k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#16 in AZ, #3,924 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: health & safety C-, crime F.
• Deer Valley Unified District (4246) (urban): math 50% / reading 55% proficiency, ranked #33 of 249 in AZ (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Inspiration Mountain School (486 students, 10% FRL); Sandra Day O'Connor High School (math 43% / reading 48%, grade D-, #58 of 381 statewide, top 15%, 2,567 students, 13% FRL).
• Market conditions: Rents rising (+2.3%/yr); 118 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 36,011 units permitted in Maricopa County in 2024 (12,801 in 5+ unit buildings).
• Maricopa County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 16y ago; this cycle's ask has dropped $41k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$117k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 6→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 36 days. Have you received any prior offers? Is the seller open to a 53% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F 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.
• 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.