7435 E Sundance Trl #403

Carefree, AZ 85377

$440,000C+

2 bd · 2.5 ba · 2,062 sqft · Built 1980 · Townhouse · Active · 288 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,533/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$733
• HOA: −$433
• Vac / Maint / Mgmt: −$952
• Net cashflow: $107/mo
• Annual: $1,289/yr
• Cap rate: 6.59%
• Cash-on-cash: 1.05%
• DSCR: 1.05
• 1% rule: 1.03%
• Cash to close: $123,200

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $440k. Condition is rated fair.
• At list price, monthly cash flow is $107 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $440k).
• It's been on market 288 days — a 12% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $387k (12.0% below list) — sets the bar for market timing.
• In year one you build about $30k of equity ($3k loan paydown + $27k appreciation (6.1% local appreciation)).
• Location reads 68/100 on livability (#58 in AZ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: amenities D+, health & safety D+, commute F.
• Cave Creek Unified District (4244) (urban): math 57% / reading 59% proficiency, ranked #13 of 249 in AZ (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Black Mountain Elementary School (math 66% / reading 63%, grade B, #104 of 1,109 statewide, top 10%, 495 students, 8% FRL); Sonoran Trails Middle School (math 48% / reading 50%, grade C-, #31 of 218 statewide, top 14%, 761 students, 7% FRL); Cactus Shadows High School (math 49% / reading 46%, grade D, #48 of 381 statewide, top 13%, 1,588 students, 6% FRL) — zoned schools at 7% FRL track the district average.
• Market conditions: 101 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 17 sale attempts since 21y ago; this cycle's ask is 15614% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $350k; 26% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (6.1% appreciation + 3.0% rent growth), your $123k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$48k 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 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 4.0% in Carefree — 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

• It's been on market 288 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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.
• 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)

• Minor: Kitchen cabinets — Worn cabinet hardware
• Minor: Bathroom vanity — Worn cabinet hardware
• Minor: Landscaping — Overgrown plants