312A E Airline Blvd

Payson, AZ 85541

$239,000C

3 bd · 2.0 ba · 1,680 sqft · Built 1979 · Manufactured · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,278/mo
• Mortgage (P&I): −$1,253
• Tax + insurance: −$171
• HOA: −$0
• Vac / Maint / Mgmt: −$478
• Net cashflow: $375/mo
• Annual: $4,504/yr
• Cap rate: 8.18%
• Cash-on-cash: 6.73%
• DSCR: 1.30
• 1% rule: 0.95%
• Cash to close: $66,920

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $239k.
• At list price, monthly cash flow is $375 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $228k (4.7% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $228k (4.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#44 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A, crime B, cost of living B; Watch: amenities D-, commute F, health & safety F.
• Payson Unified District (4209) (town): math 20% / reading 32% proficiency, ranked #138 of 249 in AZ (top 55%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Julia Randall Elementary School (math 20% / reading 36%, grade F, #586 of 1,109 statewide, top 53%, 576 students, 58% FRL); Rim Country Middle School (math 21% / reading 31%, grade F, #100 of 218 statewide, top 47%, 493 students, 53% FRL); Payson High School (math 22% / reading 32%, grade F, #141 of 381 statewide, top 38%, 790 students, 40% FRL) — zoned schools at 50% FRL track the district average.
• Market conditions: 706 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; 217 units permitted in Gila County in 2024 (0 in 5+ unit buildings).
• Gila County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 19y ago 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.
• Current owner paid $112k; list at $239k implies a 112% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.2% vs local median 3.3% in Payson — 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.
• This rent runs 41% of the median local income ($66k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1979 — 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.