3942 E Teller Dr

Pahrump, NV 89061

$404,000D

4 bd · 3.0 ba · 3,230 sqft · Built 2019 · SingleFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,762/mo
• Mortgage (P&I): −$2,119
• Tax + insurance: −$487
• HOA: −$40
• Vac / Maint / Mgmt: −$580
• Net cashflow: $-464/mo
• Annual: $-5,566/yr
• Cap rate: 4.92%
• Cash-on-cash: -4.92%
• DSCR: 0.78
• 1% rule: 0.68%
• Cash to close: $113,120

Investor read

• This is a 4-bed/3.0-bath single-family listed at $404k.
• At list price, monthly cash flow is $-464 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $322k (20.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $276k (31.6% below list).
• It's been on market 110 days — a 9% lower offer ($368k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $276k (31.6% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($3k loan paydown + $11k appreciation (2.8% local appreciation)).
• Location reads 68/100 on livability (#30 in NV) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, crime F, amenities F.
• Nye County School District (rural): math 20% / reading 33% proficiency, ranked #16 of 17 in NV (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Floyd Elementary School (math 27% / reading 35%, grade F, #181 of 402 statewide, top 45%, 551 students, 100% FRL); Rosemary Clarke Middle School (math 20% / reading 31%, grade F, #62 of 109 statewide, top 58%, 1,060 students, 100% FRL); Pahrump Valley High School (math 14% / reading 41%, grade F, #74 of 131 statewide, top 56%, 1,362 students, 100% FRL) — zoned schools average 100% FRL vs 54% district-wide (46 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 285 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes.
• Nye County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 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.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 6→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 3.4% in Pahrump — 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 42% of the median local income ($78k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 110 days. Have you received any prior offers? Is the seller open to a 32% 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?
• 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?
• 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?