1000 Mcculloch Blvd N #524

Lake Havasu City, AZ 86403

$130,000F

1 bd · 1.0 ba · 550 sqft · Built 2003 · Condo · Active · 197 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,282/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$217
• HOA: −$674
• Vac / Maint / Mgmt: −$269
• Net cashflow: $-560/mo
• Annual: $-6,717/yr
• Cap rate: 1.13%
• Cash-on-cash: -18.45%
• DSCR: 0.18
• 1% rule: 0.99%
• Cash to close: $36,400

Investor read

• This is a 1-bed/1.0-bath condo listed at $130k. Condition is rated good.
• At list price, monthly cash flow is $-560 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $49k (62.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (1.4% below list).
• It's been on market 197 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $49k (62.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $899 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#124 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A; Watch: health & safety C-, amenities F, commute F.
• Lake Havasu Unified District (4368) (urban): math 39% / reading 41% proficiency, ranked #66 of 249 in AZ (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Smoketree Elementary School (math 39% / reading 38%, grade F, #418 of 1,109 statewide, top 38%, 621 students, 49% FRL); Thunderbolt Middle School (math 27% / reading 34%, grade F, #81 of 218 statewide, top 37%, 851 students, 41% FRL); Lake Havasu High School (math 29% / reading 33%, grade F, #111 of 381 statewide, top 29%, 1,813 students, 31% FRL) — zoned schools at 40% FRL track the district average.
• Watch-outs: HOA is 53% of rent.
• Market conditions: Rents rising (+3.4%/yr); 582 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals lingering (median 140d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 83% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,543 units permitted in Mohave County in 2024 (33 in 5+ unit buildings).
• Mohave County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 13y 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 $48k; list at $130k implies a 171% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 6→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.1% vs local median 2.9% in Lake Havasu City — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 197 days. Have you received any prior offers? Is the seller open to a 62% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?