3595 E Latham Way

Gilbert, AZ 85297

$849,000D-

7 bd · 4.0 ba · 4,015 sqft · Built 2002 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,281/mo
• Mortgage (P&I): −$4,452
• Tax + insurance: −$601
• HOA: −$75
• Vac / Maint / Mgmt: −$1,319
• Net cashflow: $-167/mo
• Annual: $-2,002/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.84%
• DSCR: 0.96
• 1% rule: 0.74%
• Cash to close: $237,720

Investor read

• This is a 7-bed/4.0-bath single-family listed at $849k.
• At list price, monthly cash flow is $-167 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $820k (3.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $628k (26.0% below list).
• It's been on market 73 days — a 6% lower offer ($798k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $628k (26.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#1 in AZ, #240 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, housing A+; Watch: health & safety C-, cost of living F.
• Higley Unified School District (4248) (suburban): math 56% / reading 58% proficiency, ranked #21 of 249 in AZ (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Coronado Elementary School (math 66% / reading 66%, grade B+, #82 of 1,109 statewide, top 8%, 582 students, 15% FRL); Cooley Middle School (math 51% / reading 44%, grade C-, #36 of 218 statewide, top 18%, 873 students, 24% FRL); Williams Field High School (math 38% / reading 45%, grade F, #68 of 381 statewide, top 18%, 2,115 students, 18% FRL) — zoned schools at 19% FRL track the district average.
• Market conditions: Rents soft (-1.6%/yr); 210 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 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.
• 3 sale attempts since 22y 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.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 6→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.2% in Gilbert — 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.
• At $6,281/mo this rent would consume 58% of the median local household income ($131k/yr) (locally 868% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 73 days. Have you received any prior offers? Is the seller open to a 26% 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.