510 Copper Basin Rd #60

Prescott, AZ 86303

$66,000B-

2 bd · 2.0 ba · 700 sqft · Built 1962 · Land · Pending · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,459/mo
• Mortgage (P&I): −$346
• Tax + insurance: −$110
• HOA: −$0
• Vac / Maint / Mgmt: −$306
• Net cashflow: $697/mo
• Annual: $8,358/yr
• Cap rate: 18.96%
• Cash-on-cash: 45.23%
• DSCR: 3.01
• 1% rule: 2.21%
• Cash to close: $18,480

Investor read

• This is a 2-bed/2.0-bath land listed at $66k.
• At list price, monthly cash flow is $697 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $66k).
• It's been on market 36 days — a 3% lower offer ($64k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $64k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $456 of loan paydown is wiped out by about $2k 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: Lincoln Elementary School (math 32% / reading 32%, grade F, #505 of 1,109 statewide, top 47%, 309 students, 54% FRL); Prescott Mile High Middle School (math 26% / reading 42%, grade F, #67 of 218 statewide, top 31%, 578 students, 33% FRL); Prescott High School (math 27% / reading 35%, grade F, #111 of 381 statewide, top 29%, 1,436 students, 21% FRL).
• Market conditions: Rents flat; 520 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 47% 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 19y ago; this cycle's ask has dropped $10k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 0.5% rent growth), your $18k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.0% 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

• It's been on market 36 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1962 — 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?
• 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.