7401 N Scottsdale Rd #37

Scottsdale, AZ 85253

$575,000C-

3 bd · 3.0 ba · 2,351 sqft · Built 1975 · Condo · Active · 310 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,154/mo
• Mortgage (P&I): −$3,015
• Tax + insurance: −$412
• HOA: −$752
• Vac / Maint / Mgmt: −$1,082
• Net cashflow: $-107/mo
• Annual: $-1,288/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.80%
• DSCR: 0.96
• 1% rule: 0.90%
• Cash to close: $161,000

Investor read

• This is a 3-bed/3.0-bath condo listed at $575k. Condition is rated good.
• At list price, monthly cash flow is $-107 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $556k (3.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $515k (10.4% below list).
• It's been on market 310 days — a 12% lower offer ($506k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $506k (12.0% below list) — sets the bar for market timing.
• In year one you build about $61k of equity ($4k loan paydown + $58k appreciation (10.0% local appreciation)).
• Location reads 80/100 on livability (#4 in AZ, #1,756 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, cost of living F.
• Scottsdale Unified District (4240) (urban): math 53% / reading 55% proficiency, ranked #30 of 249 in AZ (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cheyenne Traditional School (math 78% / reading 75%, grade A, #24 of 1,109 statewide, top 2%, 880 students, 4% FRL); Mohave Middle School (math 45% / reading 48%, grade D+, #43 of 218 statewide, top 20%, 799 students, 31% FRL); Saguaro High School (math 37% / reading 41%, grade F, #78 of 381 statewide, top 20%, 1,466 students, 25% FRL) — zoned schools at 20% FRL track the district average.
• Market conditions: Rents rising fast (+8.6%/yr); 518 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 92d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 72% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 6 sale attempts since 18y ago; this cycle's ask has dropped $124k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$99k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 6.1% vs local median 2.6% in Scottsdale — 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 33% of the median local income ($185k/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 310 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?