1231 N Oleander St

Tempe, AZ 85288

$1,200,000D

45 bd · 25.0 ba · 1,896 sqft · Built 1958 · MultiFamily · Pending · 154 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,290/mo
• Mortgage (P&I): −$6,293
• Tax + insurance: −$2,000
• HOA: −$0
• Vac / Maint / Mgmt: −$2,161
• Net cashflow: $-164/mo
• Annual: $-1,966/yr
• Cap rate: 6.13%
• Cash-on-cash: -0.59%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $336,000

Investor read

• This is a 5 × 9-bed/5.0-bath units multifamily listed at $1.20M.
• At list price, monthly cash flow is $-164 ($-2k/yr) — negative. Per door: $-33/mo.
• To cash-flow at today's rent, offer at most $1.18M (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.03M (14.2% below list).
• It's been on market 154 days — a 12% lower offer ($1.06M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.03M (14.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $36k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#10 in AZ, #2,527 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living C-, health & safety D, crime F.
• Tempe School District (4258) (urban): math 17% / reading 29% proficiency, ranked #170 of 249 in AZ (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Cecil Shamley School (math 9% / reading 23%, grade F, #854 of 1,109 statewide, top 78%, 549 students, 85% FRL); Mckemy Academy of International Studies (math 24% / reading 49%, grade F, #61 of 218 statewide, top 28%, 334 students, 36% FRL) — zoned schools at 60% FRL track the district average.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.7%/yr); 105 active listings in the ZIP; 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.
• 2 sale attempts since 7y ago; this cycle's ask has dropped $95k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $855k; 40% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 3.4% in Tempe — 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 154 days. Have you received any prior offers? Is the seller open to a 14% 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?
• Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?