2401 W Route 66 #2

Flagstaff, AZ 86001

$59,000B

1 bd · 1.0 ba · 796 sqft · Built 1985 · Manufactured · Active · 136 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,328/mo
• Mortgage (P&I): −$309
• Tax + insurance: −$165
• HOA: −$0
• Vac / Maint / Mgmt: −$279
• Net cashflow: $575/mo
• Annual: $6,895/yr
• Cap rate: 19.33%
• Cash-on-cash: 46.56%
• DSCR: 3.07
• 1% rule: 2.25%
• Cash to close: $16,520

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $59k. Condition is rated fair.
• At list price, monthly cash flow is $575 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $59k).
• It's been on market 136 days — a 12% lower offer ($52k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $52k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $408 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#167 in AZ) — a middle-class / working-renter tenant base. Strengths: housing B; Watch: employment C-, crime D-, amenities F.
• Flagstaff Unified District (4192) (urban): math 18% / reading 29% proficiency, ranked #158 of 249 in AZ (top 64%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Manuel Demiguel Elementary School (math 39% / reading 55%, grade D-, #308 of 1,109 statewide, top 29%, 579 students, 19% FRL); Mount Elden Middle School (math 16% / reading 23%, grade F, #134 of 218 statewide, top 63%, 757 students, 51% FRL); Flagstaff High School (math 22% / reading 27%, grade F, #154 of 381 statewide, top 53%, 1,620 students, 25% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents flat; 436 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); 698 units permitted in Coconino County in 2024 (354 in 5+ unit buildings).
• Coconino County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 0.6% rent growth), your $17k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.3% vs local median 2.2% in Flagstaff — 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

• It's been on market 136 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• Crime grade is D 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?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and in need of replacement
• Moderate: kitchen countertops — dated and in need of replacement
• Moderate: bathroom fixtures — dated and in need of replacement
• Moderate: bathroom flooring — dated and in need of replacement
• Moderate: kitchen flooring — dated and in need of replacement
• Moderate: interior walls/paint — dated and in need of fresh paint