442 E Silverwood Ln

Benson, AZ 85602

$212,000D

3 bd · 2.0 ba · 1,526 sqft · Built 1981 · SingleFamily · Active · 102 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,598/mo
• Mortgage (P&I): −$1,112
• Tax + insurance: −$198
• HOA: −$0
• Vac / Maint / Mgmt: −$336
• Net cashflow: $-48/mo
• Annual: $-570/yr
• Cap rate: 6.02%
• Cash-on-cash: -0.96%
• DSCR: 0.96
• 1% rule: 0.75%
• Cash to close: $59,360

Investor read

• This is a 3-bed/2.0-bath single-family listed at $212k.
• At list price, monthly cash flow is $-48 ($-570/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (4.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $160k (24.6% below list).
• It's been on market 102 days — a 9% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $160k (24.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#34 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: commute D, employment D, amenities F.
• Benson Unified School District (79226) (town): math 28% / reading 39% proficiency, ranked #98 of 249 in AZ (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Benson Primary School (math 28% / reading 42%, grade F, #466 of 1,109 statewide, top 42%, 560 students, 54% FRL); Benson Middle School (math 29% / reading 39%, grade F, #67 of 218 statewide, top 31%, 295 students, 52% FRL); Benson High School (math 27% / reading 32%, grade F, #120 of 381 statewide, top 34%, 443 students, 38% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: 263 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 4 sale attempts since 18y 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 $76k; list at $212k implies a 181% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 4.5% in Benson — 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 102 days. Have you received any prior offers? Is the seller open to a 25% 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 B-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.
• 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.