2070 E Gleeson Rd

Tombstone, AZ 85638

$139,000D+

2 bd · 2.0 ba · 896 sqft · Built 2025 · SingleFamily · Active · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,008/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$232
• HOA: −$0
• Vac / Maint / Mgmt: −$212
• Net cashflow: $-165/mo
• Annual: $-1,976/yr
• Cap rate: 4.87%
• Cash-on-cash: -5.08%
• DSCR: 0.77
• 1% rule: 0.72%
• Cash to close: $38,920

Investor read

• This is a 2-bed/2.0-bath single-family listed at $139k. Condition is rated excellent.
• At list price, monthly cash flow is $-165 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $115k (17.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (27.5% below list).
• It's been on market 124 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (27.5% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($961 loan paydown + $4k appreciation (2.7% local appreciation)).
• Location reads 67/100 on livability (#62 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, employment F.
• Tombstone Unified District (4168) (rural): math 21% / reading 30% proficiency, ranked #150 of 249 in AZ (top 60%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Tombstone High School (math 17% / reading 12%, grade F, #267 of 381 statewide, top 72%, 451 students, 39% FRL) — zoned schools average 39% FRL vs 60% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 54 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 437 units permitted in Cochise County in 2024 (6 in 5+ unit buildings).
• Cochise County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $11k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.9% vs local median 2.3% in Tombstone — 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

• 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 124 days. Have you received any prior offers? Is the seller open to a 28% 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.