8324 E Stevens Dr

Prescott Valley, AZ 86314

$490,000F

4 bd · 2.0 ba · 1,920 sqft · Built 1985 · Condo · Active · 236 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,183/mo
• Mortgage (P&I): −$2,570
• Tax + insurance: −$325
• HOA: −$0
• Vac / Maint / Mgmt: −$458
• Net cashflow: $-1,170/mo
• Annual: $-14,045/yr
• Cap rate: 3.43%
• Cash-on-cash: -10.24%
• DSCR: 0.54
• 1% rule: 0.45%
• Cash to close: $137,200

Investor read

• This is a 4-bed/2.0-bath condo listed at $490k.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative.
• To cash-flow at today's rent, offer at most $283k (42.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $218k (55.4% below list).
• It's been on market 236 days — a 12% lower offer ($431k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $218k (55.4% 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 $15k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#126 in AZ) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A-; Watch: amenities F, commute F, health & safety F.
• Humboldt Unified District (4469) (suburban): math 31% / reading 37% proficiency, ranked #94 of 249 in AZ (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Liberty Traditional School (math 56% / reading 53%, grade C, #208 of 1,109 statewide, top 19%, 785 students, 39% FRL); Bradshaw Mountain Middle School (math 24% / reading 39%, grade F, #78 of 218 statewide, top 36%, 280 students, 55% FRL); Bradshaw Mountain High School (math 15% / reading 26%, grade F, #222 of 381 statewide, top 59%, 1,697 students, 43% FRL) — zoned schools at 45% FRL track the district average.
• Market conditions: Rents flat; 455 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 46% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 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.
• Current owner paid $397k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• This rent runs 38% of the median local income ($69k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 236 days. Have you received any prior offers? Is the seller open to a 55% concession, seller financing, or rate buy-down credit?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.