2746 Columbia Ln #5

Heber-Overgaard, AZ 85933

$140,000D

1 bd · 1.0 ba · 400 sqft · Built 2026 · SingleFamily · Active · 84 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,325/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$233
• HOA: −$0
• Vac / Maint / Mgmt: −$278
• Net cashflow: $79/mo
• Annual: $950/yr
• Cap rate: 6.97%
• Cash-on-cash: 2.42%
• DSCR: 1.11
• 1% rule: 0.95%
• Cash to close: $39,200

Investor read

• This is a 1-bed/1.0-bath single-family listed at $140k. Condition is rated excellent.
• At list price, monthly cash flow is $79 ($950/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 $132k (5.4% below list).
• It's been on market 84 days — a 6% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $132k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Heber-Overgaard Unified District (4392) (rural): math 52% / reading 45% proficiency, ranked #51 of 249 in AZ (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mountain Meadows Primary (math 70% / reading 50%, grade B-, #148 of 1,109 statewide, top 15%, 143 students, 43% FRL); Mogollon Jr High School (math 42% / reading 32%, grade F, #57 of 218 statewide, top 27%, 77 students, 0% FRL); Mogollon High School (math 30% / reading 30%, grade F, #116 of 381 statewide, top 31%, 167 students, 32% FRL) — zoned schools average 25% FRL vs 50% district-wide (25 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 258 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.0% vs local median 3.2% in Heber-Overgaard — 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 84 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• 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.
• 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.