12 Nelson Canyon Rd

Peach Springs, AZ 86337

$115,000B

4 bd · 3.0 ba · 2,000 sqft · Built 1993 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,853/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$0
• Vac / Maint / Mgmt: −$389
• Net cashflow: $669/mo
• Annual: $8,025/yr
• Cap rate: 13.27%
• Cash-on-cash: 24.92%
• DSCR: 2.11
• 1% rule: 1.61%
• Cash to close: $32,200

Investor read

• This is a 4-bed/3.0-bath single-family listed at $115k. Condition is rated poor.
• At list price, monthly cash flow is $669 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $115k).
• It's been on market 73 days — a 6% lower offer ($108k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#64 in AZ) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, crime B+; Watch: amenities F, employment D-, health & safety F.
• Seligman Unified District (4472) (rural): math 20% / reading 30% proficiency, ranked #339 of 501 in AZ (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Seligman Elementary School (math 24% / reading 34%, grade F, #548 of 1,109 statewide, top 51%, 139 students, 67% FRL); Seligman High School (math 24% / reading 24%, grade F, #154 of 381 statewide, top 53%, 60 students, 72% FRL) — zoned schools average 69% FRL vs 54% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 295 active listings in the ZIP; 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.
• At projected returns (-2.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~5 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen countertops — severe wear and tear
• Major: bathroom tiles — severe wear and tear
• Major: roof — visible rust and wear
• Major: exterior siding — peeling paint and damage
• Major: flooring — damaged carpet and worn wood
• Major: interior walls — damaged walls and peeling paint