11773 E Ground Cherry Ln

Scottsdale, AZ 85262

$1,641,995F

3 bd · 3.5 ba · 3,655 sqft · Built 2026 · Land · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,036/mo
• Mortgage (P&I): −$8,611
• Tax + insurance: −$2,737
• HOA: −$140
• Vac / Maint / Mgmt: −$1,058
• Net cashflow: $-7,509/mo
• Annual: $-90,109/yr
• Cap rate: 0.81%
• Cash-on-cash: -19.60%
• DSCR: 0.13
• 1% rule: 0.31%
• Cash to close: $459,759

Investor read

• This is a 3-bed/3.5-bath land listed at $1.64M.
• At list price, monthly cash flow is $-8k ($-90k/yr) — negative.
• To cash-flow at today's rent, offer at most $555k (66.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $504k (69.3% below list).
• It's been on market 135 days — a 12% lower offer ($1.44M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $504k (69.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $49k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#4 in AZ, #1,756 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, cost of living F.
• Cave Creek Unified District (4244) (urban): math 57% / reading 59% proficiency, ranked #13 of 249 in AZ (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: 588 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 83% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 36,011 units permitted in Maricopa County in 2024 (12,801 in 5+ unit buildings).
• Maricopa County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 0.8% vs local median 2.5% in Scottsdale — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 34% of the median local income ($178k/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 135 days. Have you received any prior offers? Is the seller open to a 69% concession, seller financing, or rate buy-down credit?
• 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.
• 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.