1320 W Desert Hills Dr

Green Valley, AZ 85622

$174,000D

1 bd · 1.0 ba · 587 sqft · Built 1985 · Condo · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,333/mo
• Mortgage (P&I): −$912
• Tax + insurance: −$152
• HOA: −$45
• Vac / Maint / Mgmt: −$280
• Net cashflow: $-56/mo
• Annual: $-670/yr
• Cap rate: 5.91%
• Cash-on-cash: -1.38%
• DSCR: 0.94
• 1% rule: 0.77%
• Cash to close: $48,720

Investor read

• This is a 1-bed/1.0-bath condo listed at $174k.
• At list price, monthly cash flow is $-56 ($-670/yr) — negative.
• To cash-flow at today's rent, offer at most $164k (5.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (23.4% below list).
• It's been on market 86 days — a 6% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $133k (23.4% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($1k loan paydown + $286 appreciation (0.2% local appreciation)).
• Location reads 61/100 on livability (#165 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Continental Elementary District (4416) (rural): math 35% / reading 42% proficiency, ranked #72 of 249 in AZ (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Continental Elementary School (math 35% / reading 42%, grade F, #418 of 1,109 statewide, top 38%, 639 students, 31% FRL).
• Market conditions: 114 active listings in the ZIP; 5,268 units permitted in Pima County in 2024 (996 in 5+ unit buildings).
• Pima County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 11y ago; this cycle's ask has dropped $24k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 4.5% in Green Valley — 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 86 days. Have you received any prior offers? Is the seller open to a 23% 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.