7980 E Lakeshore Dr

Prescott Valley, AZ 86314

$660,000D

16 bd · 16.0 ba · 2,502 sqft · Built 1997 · MultiFamily · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,015/mo
• Mortgage (P&I): −$3,461
• Tax + insurance: −$432
• HOA: −$0
• Vac / Maint / Mgmt: −$1,263
• Net cashflow: $859/mo
• Annual: $10,308/yr
• Cap rate: 7.85%
• Cash-on-cash: 5.58%
• DSCR: 1.25
• 1% rule: 0.91%
• Cash to close: $184,800

Investor read

• This is a 4 × 1-bed/1-bath units multifamily listed at $660k. Condition is rated fair.
• At list price, monthly cash flow is $859 ($10k/yr) — positive. Per door: $215/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $602k (8.9% below list).
• It's been on market 127 days — a 12% lower offer ($581k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $581k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#126 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A-; Watch: schools C-, amenities F, commute F.
• Humboldt Unified District (4469) (suburban): math 31% / reading 37% proficiency, ranked #94 of 249 in AZ (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents flat; 447 active listings in the ZIP; 2,062 units permitted in Yavapai County in 2024 (98 in 5+ unit buildings).
• Yavapai County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $35k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $205k; list at $660k implies a 222% gain — meaningful room to come down on a strong offer.
• Cap rate 7.9% vs local median 3.2% in Prescott 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.
• At $6,015/mo this rent would consume 104% of the median local household income ($69k/yr) (locally 1236% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 127 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant wear and tear
• Major: flooring — Worn and stained carpet
• Major: interior walls/paint — Worn paint and scuff marks
• Moderate: kitchen cabinets — Outdated and worn
• Moderate: bathroom cabinets — Outdated and worn