RentalCalcs · Arizona apartment research · October 18, 2026

Verify the income before choosing the cap

Complete with property evidence. Fields stay in this page; nothing is sent to a server. Use Print to save a completed PDF. This is an investor worksheet, not a lender application or appraisal.

Arizona report

Property, city and countyEvidence checked on

1. Match the evidence

Phoenix Q3 CoStar averages, Northmarq Q2 stabilized operations and Tucson’s older B/C sales cohort have different scopes. Do not splice them into a statewide or neighborhood rate.

Closed sales: close date, vintage, price, condition, NOI convention and sourceMissing comparables or adjustments requiring verification

2. Test the competing lease-up window

For Tempe or North Gateway, verify nearby delivery dates against subject expirations. For Oro Valley/Catalina, compare incoming supply with the actual competing inventory. Project schedules are uncertain; obtain current effective rents.

Nearby project, verified delivery, unit mix and concessionsSubject renewal months / concession and downtime downside

3. Reconcile annual income and buyer expenses

Scheduled rent ($)Other recurring income ($)Vacancy / concessions / bad debt ($)Effective income ($)Buyer property taxes ($)Quoted commercial insurance ($)Management ($)Recurring repairs ($)Owner utilities ($)Payroll / contracts / other ($)Total recurring expenses ($)NOI = effective income − expenses ($)

Assessor classification, LPV, complete taxing districts and applicable exemptions

Qualifying long-term residential rental city TPT ended January 1, 2025. Verify lease use; do not remove property taxes or short-term lodging obligations on that basis. Cooling systems, utilities and immediate capital work need separate evidence.

4. Price, debt and cash

Price ($)Cap = NOI ÷ price × 100 (%)Loan ($)Annual debt service ($)Reserve outside NOI ($/year)Initial capital work ($)Closing costs ($)Cash invested = price − loan + closing + work ($)Cash flow = NOI − debt − reserve ($)Cash-on-cash = cash flow ÷ invested cash × 100 (%)

DSCR = lender-underwritten income ÷ debt service. Debt yield = lender-underwritten income ÷ loan. Confirm reserve treatment; do not deduct a reserve twice.

5. Test both lower NOI and a wider cap

Exit NOI ($/year)Exit cap (%)Gross value = NOI ÷ (cap ÷ 100) ($)Debt payoff / selling costs / taxes ($)

Evidence that would invalidate the rent or cap thesis

Reconciled reference, not a local quote

$300,000 scheduled rent − $24,000 loss − $156,000 recurring expenses = $120,000 NOI. $2 million price gives a 6% cap. $1.2 million debt at an assumed 6.5%, 30-year monthly amortization: approximately $91,018 annual service. After $10,000 reserves: approximately $18,982 cash. $800,000 down + $60,000 closing + $80,000 work = $940,000 invested; approximately 2.02% cash-on-cash before income taxes.

At unchanged $120,000 NOI and a 7% exit cap, gross value is $1,714,286, down 14.3%. NOI must grow 16.7% cumulatively to preserve $2 million at 7%. Debt payoff, selling costs, taxes and interim cash flows are excluded from that value comparison.

Original RentalCalcs worksheet. Source ledger and limitations. No current cap is assigned to uncovered Arizona markets.