4827 S Mcminn Ct

Gilbert, AZ 85298

$617,700D

4 bd · 3.0 ba · 2,042 sqft · Built 2014 · SingleFamily · Pending · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,071/mo
• Mortgage (P&I): −$3,239
• Tax + insurance: −$481
• HOA: −$116
• Vac / Maint / Mgmt: −$645
• Net cashflow: $-1,411/mo
• Annual: $-16,926/yr
• Cap rate: 3.55%
• Cash-on-cash: -9.79%
• DSCR: 0.56
• 1% rule: 0.50%
• Cash to close: $172,956

Investor read

• This is a 4-bed/3.0-bath single-family listed at $618k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $369k (40.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $307k (50.3% below list).
• It's been on market 46 days — a 3% lower offer ($599k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $307k (50.3% below list) — sets the bar for 1% rule.
• In year one you build about $56k of equity ($4k loan paydown + $52k appreciation (8.4% local appreciation)).
• Location reads 87/100 on livability (#1 in AZ, #240 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, housing A+; Watch: health & safety C-, cost of living F.
• Chandler Unified District #80 (4242) (suburban): math 49% / reading 57% proficiency, ranked #31 of 249 in AZ (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Haley Elementary (math 62% / reading 70%, grade B+, #82 of 1,109 statewide, top 8%, 765 students, 11% FRL); Willie & Coy Payne Jr. High (math 47% / reading 53%, grade C, #26 of 218 statewide, top 12%, 1,143 students, 11% FRL); Perry High School (math 48% / reading 50%, grade D, #43 of 381 statewide, top 11%, 2,822 students, 12% FRL).
• Market conditions: Rents rising fast (+4.3%/yr); 340 active listings in the ZIP; 31 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 4 sale attempts since 9y 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 $455k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$90k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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.

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 46 days. Have you received any prior offers? Is the seller open to a 50% 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?
• 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.
• 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.