7111 E Buena Terra Way

Scottsdale, AZ 85253

$795,299C-

3 bd · 4.0 ba · 2,589 sqft · Built 1975 · Townhouse · Pending · 98 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,209/mo
• Mortgage (P&I): −$4,171
• Tax + insurance: −$594
• HOA: −$330
• Vac / Maint / Mgmt: −$1,094
• Net cashflow: $-980/mo
• Annual: $-11,757/yr
• Cap rate: 4.81%
• Cash-on-cash: -5.28%
• DSCR: 0.77
• 1% rule: 0.65%
• Cash to close: $222,684

Investor read

• This is a 3-bed/4.0-bath townhouse listed at $795k.
• At list price, monthly cash flow is $-980 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $622k (21.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $521k (34.5% below list).
• It's been on market 98 days — a 9% lower offer ($724k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $521k (34.5% below list) — sets the bar for 1% rule.
• In year one you build about $85k of equity ($5k loan paydown + $80k appreciation (10.0% local appreciation)).
• Location reads 80/100 on livability (#4 in AZ, #1,756 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, cost of living F.
• Scottsdale Unified District (4240) (urban): math 53% / reading 55% proficiency, ranked #30 of 249 in AZ (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising fast (+8.6%/yr); 354 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 7 sale attempts since 25y 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 $348k; list at $795k implies a 129% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$137k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% vs local median 2.5% in Scottsdale — 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 34% of the median local income ($185k/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 98 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.