2326 S Porter St

Gilbert, AZ 85295

$680,000D-

6 bd · 4.0 ba · 3,515 sqft · Built 1999 · SingleFamily · Pending · 101 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,143/mo
• Mortgage (P&I): −$3,566
• Tax + insurance: −$506
• HOA: −$76
• Vac / Maint / Mgmt: −$870
• Net cashflow: $-875/mo
• Annual: $-10,499/yr
• Cap rate: 4.75%
• Cash-on-cash: -5.51%
• DSCR: 0.75
• 1% rule: 0.61%
• Cash to close: $190,400

Investor read

• This is a 6-bed/4.0-bath single-family listed at $680k.
• At list price, monthly cash flow is $-875 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $525k (22.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $414k (39.1% below list).
• It's been on market 101 days — a 9% lower offer ($619k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $414k (39.1% below list) — sets the bar for 1% rule.
• 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 87/100 on livability (#1 in AZ, #240 nationally) — a professional / high-income tenant draw. Strengths: schools A+, amenities A+, employment A+; Watch: health & safety C-, cost of living F.
• Gilbert Unified District (4239) (suburban): math 49% / reading 52% proficiency, ranked #38 of 249 in AZ (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Market conditions: Rents soft (-0.4%/yr); 225 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 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.
• 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 4.7% vs local median 3.2% in Gilbert — 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.
• This rent runs 42% of the median local income ($118k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 101 days. Have you received any prior offers? Is the seller open to a 39% 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?
• 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 A-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.