2609 El Dr

Santa Clara, UT 84765

$398,000D-

5 bd · 2.0 ba · 2,604 sqft · Built 1982 · SingleFamily · Under Contract · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,050/mo
• Mortgage (P&I): −$2,087
• Tax + insurance: −$299
• HOA: −$0
• Vac / Maint / Mgmt: −$640
• Net cashflow: $23/mo
• Annual: $279/yr
• Cap rate: 6.36%
• Cash-on-cash: 0.25%
• DSCR: 1.01
• 1% rule: 0.77%
• Cash to close: $111,440

Investor read

• This is a 5-bed/2.0-bath single-family listed at $398k.
• At list price, monthly cash flow is $23 ($279/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $305k (23.4% below list).
• It's been on market 25 days — a 2% lower offer ($392k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $305k (23.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#137 in UT) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living D-.
• Washington District (urban): math 42% / reading 45% proficiency, ranked #37 of 80 in UT (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Santa Clara School (math 39% / reading 34%, grade F, #371 of 585 statewide, top 64%, 483 students, 29% FRL); Lava Ridge Intermediate (math 43% / reading 40%, grade F, #61 of 138 statewide, top 47%, 815 students, 42% FRL); Snow Canyon High (math 32% / reading 48%, grade F, #62 of 171 statewide, top 36%, 1,266 students, 30% FRL) — zoned schools at 34% FRL track the district average.
• Market conditions: 137 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 3,140 units permitted in Washington County in 2024 (650 in 5+ unit buildings).
• Washington County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 38% of the median local income ($96k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.