2839 W Kings Hwy Unit W

Prescott Valley, AZ 86314

$140,000B-

3 bd · 2.0 ba · 1,440 sqft · Built 1982 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,979/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$233
• HOA: −$0
• Vac / Maint / Mgmt: −$416
• Net cashflow: $596/mo
• Annual: $7,153/yr
• Cap rate: 11.40%
• Cash-on-cash: 18.25%
• DSCR: 1.81
• 1% rule: 1.41%
• Cash to close: $39,200

Investor read

• This is a 3-bed/2.0-bath single-family listed at $140k. Condition is rated fair.
• At list price, monthly cash flow is $596 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• It's been on market 23 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $138k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k 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); Glassford Hill Middle School (math 19% / reading 24%, grade F, #122 of 218 statewide, top 57%, 398 students, 49% FRL); Bradshaw Mountain High School (math 15% / reading 26%, grade F, #222 of 381 statewide, top 59%, 1,697 students, 43% FRL).
• Market conditions: Rents flat; 745 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• At projected returns (-3.0% appreciation + 1.0% rent growth), your $39k cash investment doubles in ~8 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 11.4% vs local median 3.0% 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.
• This rent runs 34% of the median local income ($69k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• 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.
• 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)

• Major: Exposed ceiling — Structural damage and safety hazard.
• Major: Missing cabinets — Aesthetics and functionality compromised.
• Major: Weathered siding — Structural integrity and appearance compromised.
• Major: Overgrown landscaping — Safety and aesthetics compromised.
• Major: Porch railings — Safety hazard and aesthetics compromised.