5395 Churchill Rd

Snowflake, AZ 85937

$299,300D-

2 bd · 2.0 ba · 1,037 sqft · Built 2003 · SingleFamily · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,706/mo
• Mortgage (P&I): −$1,570
• Tax + insurance: −$183
• HOA: −$0
• Vac / Maint / Mgmt: −$358
• Net cashflow: $-405/mo
• Annual: $-4,860/yr
• Cap rate: 4.67%
• Cash-on-cash: -5.80%
• DSCR: 0.74
• 1% rule: 0.57%
• Cash to close: $83,804

Investor read

• This is a 2-bed/2.0-bath single-family listed at $299k.
• At list price, monthly cash flow is $-405 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $228k (23.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $171k (43.0% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $171k (43.0% below list) — sets the bar for 1% rule.
• In year one you build about $32k of equity ($2k loan paydown + $30k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#46 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, 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.
• Market conditions: 290 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 $160k; list at $299k implies a 87% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$51k 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 Snowflake — 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?
• 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.