2775 Ridge Rd

Prescott, AZ 86301

$171,000D

1 bd · 1.0 ba · 664 sqft · Built 1969 · Manufactured · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,315/mo
• Mortgage (P&I): −$897
• Tax + insurance: −$118
• HOA: −$0
• Vac / Maint / Mgmt: −$276
• Net cashflow: $25/mo
• Annual: $294/yr
• Cap rate: 6.46%
• Cash-on-cash: 0.61%
• DSCR: 1.03
• 1% rule: 0.77%
• Cash to close: $47,880

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $171k.
• At list price, monthly cash flow is $25 ($294/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 $132k (23.1% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $132k (23.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#22 in AZ) — a middle-class / working-renter tenant base. Strengths: health & safety A+, amenities A; Watch: cost of living D, commute F.
• Prescott Unified District (4466) (urban): math 34% / reading 44% proficiency, ranked #70 of 249 in AZ (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Abia Judd Elementary School (math 55% / reading 53%, grade C, #215 of 1,109 statewide, top 20%, 505 students, 37% FRL); Prescott High School (math 27% / reading 35%, grade F, #111 of 381 statewide, top 29%, 1,436 students, 21% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: Rents flat; 491 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,062 units permitted in Yavapai County in 2024 (98 in 5+ unit buildings).
• Yavapai County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.5% vs local median 2.4% in Prescott — 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

• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.