40090 Colorado Way

Salome, AZ 85348

$116,000C+

3 bd · 2.0 ba · 1,428 sqft · Built 1989 · Manufactured · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,335/mo
• Mortgage (P&I): −$608
• Tax + insurance: −$147
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $299/mo
• Annual: $3,592/yr
• Cap rate: 9.39%
• Cash-on-cash: 11.06%
• DSCR: 1.49
• 1% rule: 1.15%
• Cash to close: $32,480

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $116k.
• At list price, monthly cash flow is $299 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $116k).
• It's been on market 22 days — a 2% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($802 loan paydown + $4k appreciation (3.1% local appreciation)).
• Location reads 66/100 on livability (#76 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-; Watch: health & safety C-, schools F, amenities F.
• Bicentennial Union High School District (4515) (rural): math 0% / reading 11% proficiency, ranked #448 of 501 in AZ (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 136 active listings in the ZIP; 92 units permitted in La Paz County in 2024 (0 in 5+ unit buildings).
• La Paz County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $78k; 49% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.1% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 6→13/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.4% vs local median 4.3% in Salome — 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.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.