533 N F Ave

Douglas, AZ 85607

$27,500B-

1 bd · 1.0 ba · 600 sqft · Built 1910 · SingleFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $678/mo
• Mortgage (P&I): −$144
• Tax + insurance: −$33
• HOA: −$0
• Vac / Maint / Mgmt: −$142
• Net cashflow: $358/mo
• Annual: $4,299/yr
• Cap rate: 21.93%
• Cash-on-cash: 55.83%
• DSCR: 3.48
• 1% rule: 2.47%
• Cash to close: $7,700

Investor read

• This is a 1-bed/1.0-bath single-family listed at $28k.
• At list price, monthly cash flow is $358 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($678 rent vs $28k).
• It's been on market 15 days — a 2% lower offer ($27k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $27k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $190 of loan paydown is wiped out by about $825 of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#39 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities D-, commute F, employment F.
• Douglas Unified District (4174) (town): math 9% / reading 24% proficiency, ranked #209 of 249 in AZ (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 72% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Clawson School (math 8% / reading 17%, grade F, #944 of 1,109 statewide, top 87%, 344 students, 83% FRL); Ray Borane Middle School (math 5% / reading 17%, grade F, #183 of 218 statewide, top 85%, 387 students, 92% FRL); Douglas High School (math 14% / reading 28%, grade F, #220 of 381 statewide, top 58%, 1,405 students, 83% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 163 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 5→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 21.9% vs local median 4.3% in Douglas — 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

• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.