1225 N Dixie Downs Rd #70

St. George, UT 84770

$89,000B-

1 bd · 1.0 ba · 408 sqft · Built 1986 · Manufactured · Under Contract · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,174/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$69
• HOA: −$105
• Vac / Maint / Mgmt: −$247
• Net cashflow: $286/mo
• Annual: $3,437/yr
• Cap rate: 10.15%
• Cash-on-cash: 13.79%
• DSCR: 1.61
• 1% rule: 1.32%
• Cash to close: $24,920

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $89k.
• At list price, monthly cash flow is $286 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $89k).
• It's been on market 20 days — a 2% lower offer ($88k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Washington District (urban): math 42% / reading 45% proficiency, ranked #37 of 80 in UT (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Red Mountain School (math 32% / reading 33%, grade F, #416 of 585 statewide, top 71%, 434 students, 59% FRL); Lava Ridge Intermediate (math 43% / reading 40%, grade F, #61 of 138 statewide, top 47%, 815 students, 42% FRL); Snow Canyon High (math 32% / reading 48%, grade F, #62 of 171 statewide, top 36%, 1,266 students, 30% FRL).
• Market conditions: Rents rising (+2.4%/yr); 779 active listings in the ZIP; 3,140 units permitted in Washington County in 2024 (650 in 5+ unit buildings).
• Washington County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 2.4% rent growth), your $25k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 6→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.