1339 Hearthstone Ct

McCall, ID 83638

$62,000D-

2 bd · 3.0 ba · 1,915 sqft · Built 2003 · Townhouse · Pending · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,061/mo
• Mortgage (P&I): −$325
• Tax + insurance: −$103
• HOA: −$604
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-194/mo
• Annual: $-2,327/yr
• Cap rate: 2.54%
• Cash-on-cash: -13.41%
• DSCR: 0.40
• 1% rule: 1.71%
• Cash to close: $17,360

Investor read

• This is a 2-bed/3.0-bath townhouse listed at $62k.
• At list price, monthly cash flow is $-194 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $34k (45.3% below list).
• Meets the 1% rule at list price ($1k rent vs $62k).
• It's been on market 80 days — a 6% lower offer ($58k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $34k (45.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $429 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#49 in ID) — a middle-class / working-renter tenant base. Strengths: health & safety A, housing B; Watch: amenities F, commute F.
• Mccall-Donnelly Joint School District (rural): math 59% / reading 74% proficiency, ranked #8 of 92 in ID (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Barbara R Morgan Elementary (math 64% / reading 70%, grade B+, #31 of 357 statewide, top 10%, 428 students, 21% FRL); Payette Lakes Middle School (math 55% / reading 78%, grade A-, #2 of 109 statewide, top 1%, 310 students, 19% FRL); Mccall-Donnelly High School (math 62% / reading 82%, grade B+, #7 of 169 statewide, top 4%, 429 students, 11% FRL).
• Watch-outs: HOA is 57% of rent.
• Market conditions: 525 active listings in the ZIP; 250 units permitted in Valley County in 2024 (0 in 5+ unit buildings).
• Valley County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 7 sale attempts since 18y ago; this cycle's ask has dropped $21k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 80 days. Have you received any prior offers? Is the seller open to a 45% 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.