1204 E Mesquite Dr

Carefree, AZ 85377

$1,075,000D+

2 bd · 3.0 ba · 2,085 sqft · Built 1971 · SingleFamily · Active · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,065/mo
• Mortgage (P&I): −$5,637
• Tax + insurance: −$1,792
• HOA: −$218
• Vac / Maint / Mgmt: −$1,694
• Net cashflow: $-1,275/mo
• Annual: $-15,305/yr
• Cap rate: 4.87%
• Cash-on-cash: -5.08%
• DSCR: 0.77
• 1% rule: 0.75%
• Cash to close: $301,000

Investor read

• This is a 2-bed/3.0-bath single-family listed at $1.07M.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $890k (17.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $807k (25.0% below list).
• It's been on market 69 days — a 6% lower offer ($1.01M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $807k (25.0% below list) — sets the bar for 1% rule.
• In year one you build about $73k of equity ($7k loan paydown + $66k appreciation (6.1% local appreciation)).
• Location reads 68/100 on livability (#58 in AZ) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: amenities D+, health & safety D+, commute F.
• Cave Creek Unified District (4244) (urban): math 57% / reading 59% proficiency, ranked #13 of 249 in AZ (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: 101 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 78% of comp listings sitting > 30 days — soft ceiling on asking rent; 36,011 units permitted in Maricopa County in 2024 (12,801 in 5+ unit buildings).
• Maricopa County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 21y ago 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.
• Current owner paid $450k; list at $1.07M implies a 139% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$117k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 6→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 4.0% in Carefree — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 69 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.