390 Quail Ct

Rio Rico, AZ 85648

$247,500D+

3 bd · 2.0 ba · 1,783 sqft · Built 1981 · SingleFamily · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,981/mo
• Mortgage (P&I): −$1,298
• Tax + insurance: −$291
• HOA: −$0
• Vac / Maint / Mgmt: −$416
• Net cashflow: $-24/mo
• Annual: $-292/yr
• Cap rate: 6.17%
• Cash-on-cash: -0.42%
• DSCR: 0.98
• 1% rule: 0.80%
• Cash to close: $69,300

Investor read

• This is a 3-bed/2.0-bath single-family listed at $248k.
• At list price, monthly cash flow is $-24 ($-292/yr) — negative.
• To cash-flow at today's rent, offer at most $243k (1.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $198k (20.0% below list).
• It's been on market 68 days — a 6% lower offer ($233k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (20.0% below list) — sets the bar for 1% rule.
• In year one you build about $26k of equity ($2k loan paydown + $25k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#115 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, schools F.
• Santa Cruz Valley Unified District (4458) (town): math 12% / reading 26% proficiency, ranked #184 of 249 in AZ (top 74%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 410 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 340 units permitted in Santa Cruz County in 2024 (0 in 5+ unit buildings).
• Santa Cruz County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 5y ago; this cycle's ask has dropped $28k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $69k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 8→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 4.1% in Rio Rico — 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.
• This rent runs 39% of the median local income ($62k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 68 days. Have you received any prior offers? Is the seller open to a 20% 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.