260 S Land St #29

Benson, AZ 85602

$28,000B-

2 bd · 1.0 ba · 500 sqft · Built 1963 · Manufactured · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $854/mo
• Mortgage (P&I): −$147
• Tax + insurance: −$47
• HOA: −$0
• Vac / Maint / Mgmt: −$179
• Net cashflow: $481/mo
• Annual: $5,772/yr
• Cap rate: 26.91%
• Cash-on-cash: 73.62%
• DSCR: 4.28
• 1% rule: 3.05%
• Cash to close: $7,840

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $28k. Condition is rated fair.
• At list price, monthly cash flow is $481 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($854 rent vs $28k).
• It's been on market 16 days — a 2% lower offer ($28k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $28k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $194 of loan paydown is wiped out by about $840 of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#34 in AZ) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: commute D, employment D, amenities F.
• Benson Unified School District (79226) (town): math 28% / reading 39% proficiency, ranked #98 of 249 in AZ (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Benson Primary School (math 28% / reading 42%, grade F, #466 of 1,109 statewide, top 42%, 560 students, 54% FRL); Benson Middle School (math 29% / reading 39%, grade F, #67 of 218 statewide, top 31%, 295 students, 52% FRL); Benson High School (math 27% / reading 32%, grade F, #120 of 381 statewide, top 34%, 443 students, 38% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: 263 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 437 units permitted in Cochise County in 2024 (6 in 5+ unit buildings).
• Cochise County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 2y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 8→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 26.9% vs local median 4.5% in Benson — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1963 — 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 B-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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — slight wear
• Minor: bathroom fixtures — slight wear
• Minor: exterior siding — some wear