1283 N Tapadero Dr

Prescott Valley, AZ 86327

$499,000C

6 bd · 4.5 ba · 2,642 sqft · Built 1985 · MultiFamily · Active · 146 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,599/mo
• Mortgage (P&I): −$2,617
• Tax + insurance: −$369
• HOA: −$6
• Vac / Maint / Mgmt: −$966
• Net cashflow: $641/mo
• Annual: $7,694/yr
• Cap rate: 7.83%
• Cash-on-cash: 5.51%
• DSCR: 1.25
• 1% rule: 0.92%
• Cash to close: $139,720

Investor read

• This is a 3 × 2.0-bed/1.5-bath units multifamily listed at $499k.
• At list price, monthly cash flow is $641 ($8k/yr) — positive. Per door: $214/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $460k (7.8% below list).
• It's been on market 146 days — a 12% lower offer ($439k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $439k (12.0% below list) — sets the bar for market timing.
• 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: schools C-, amenities F, commute 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.
• Market conditions: 266 active listings in the ZIP; 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.
• 2 sale attempts; this cycle's ask has dropped $80k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $180k; list at $499k implies a 177% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.8% vs local median 3.2% in Prescott Valley — 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.
• At $4,599/mo this rent would consume 77% of the median local household income ($72k/yr) (locally 70% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 146 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.