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42 Vista Bonita Dr, Sedona, AZ 86336, USA
Priced too high to cash-flow with a loan — an equity or tax play, not income.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$76,177
$6,348/mo · at 59% occupancy & $528/night
-$19,236
-$1,603/mo after costs & mortgage
Cap rate
3.9%
Cash-on-cash
-7.4%
DSCR
0.65
Confidence
Your assumptions
Revenue
$76,177/yr
Market avg: $76,177/yr · 59% occ · $528 ADR
Financing
$55,297/yr
Operating costs
$40,117/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$336–$793
Median $528
32%–85%
Median 59%
$39.9K–$147.8K
Median $73.1K
150–365
Median 268
This property · $76.2K
Comparable properties (50)
Cash flow potential Low · Appreciation potential Medium
287 days available · 247 days booked ·
297 days available · 171 days booked ·
257 days available · 173 days booked ·
297 days available · 203 days booked ·
247 days available · 172 days booked ·
265 days available · 129 days booked ·
262 days available · 132 days booked ·
364 days available · 169 days booked ·
242 days available · 186 days booked ·
210 days available · 139 days booked ·
235 days available · 154 days booked ·
365 days available · 178 days booked ·
356 days available · 232 days booked ·
251 days available · 172 days booked ·
253 days available · 132 days booked ·
336 days available · 154 days booked ·
325 days available · 173 days booked ·
277 days available · 187 days booked ·
268 days available · 209 days booked ·
257 days available · 144 days booked ·
304 days available · 138 days booked ·
268 days available · 139 days booked ·
229 days available · 130 days booked ·
222 days available · 134 days booked ·
265 days available · 147 days booked ·
289 days available · 169 days booked ·
269 days available · 106 days booked ·
320 days available · 147 days booked ·
277 days available · 152 days booked ·
204 days available · 106 days booked ·
281 days available · 127 days booked ·
242 days available · 129 days booked ·
215 days available · 119 days booked ·
240 days available · 137 days booked ·
263 days available · 178 days booked ·
290 days available · 175 days booked ·
299 days available · 81 days booked ·
294 days available · 109 days booked ·
230 days available · 153 days booked ·
278 days available · 118 days booked ·
279 days available · 127 days booked ·
232 days available · 112 days booked ·
256 days available · 126 days booked ·
314 days available · 92 days booked ·
267 days available · 116 days booked ·
268 days available · 121 days booked ·
280 days available · 112 days booked ·
240 days available · 134 days booked ·
236 days available · 110 days booked ·
150 days available · 95 days booked ·
Revenue and occupancy reflect Chalet's modeled estimates from observed booking activity for comparable active listings. Individual results vary with management, seasonality, and pricing.
Who this property is for
The same property is a great buy for one investor and a trap for another. Here's the honest read.
1031 / high-equity buyer
~$228.1K
Year-1 tax shield
Buying with cash or low leverage removes the debt-coverage problem entirely, so the thesis rests on appreciation plus a large first-year write-off. At roughly 25% of purchase price, the shield is substantial enough to carry the deal on its own.
Price-disciplined buyer
$602.2K
Break-even purchase price
Break-even is ~35% below the Zestimate, a discount sellers in Sedona rarely accept. Treat the number as a walk-away line rather than an opening offer.
DSCR cash-flow buyer
0.65
DSCR at asking
At asking price the property doesn't cover its own debt service, so it won't qualify for DSCR financing as modeled. If you need cash flow from day one, look at a mid-term-rental fallback or a different Sedona submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$228.1K
Estimated first-year deduction · range $189.3K–$260.0K
Why this matters here
At a marginal bracket, this deduction can be worth $70.1K–$96.2K in estimated federal tax saved.
This only applies if you meet the IRS material-participation tests for short-term rentals and are not using a full-service property manager.
Estimate, subject to CPA review. Cost-segregation percentages shown here are illustrative and depend on an actual study of the property.
Some states do not conform to federal bonus depreciation, so your state may not allow the same first-year treatment shown above.
Chalet can introduce a cost-segregation partner — this is not tax, legal, or financial advice.
How cash-on-cash return moves with purchase price. The marked line is break-even (1.0 DSCR).
At this price: cash-on-cash -7.4%, DSCR 0.65, cash flow -$19,236/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $692,625 | -2.7% | 0.87 | Below break-even |
| -22% | $720,330 | -3.4% | 0.84 | Below break-even |
| -15% | $784,975 | -4.9% | 0.77 | Below break-even |
| -8% | $849,620 | -6.1% | 0.71 | Below break-even |
| Asking | $923,500 | -7.4% | 0.65 | Below break-even |
| +8% | $997,380 | -8.5% | 0.60 | Below break-even |
| +15% | $1,062,025 | -9.3% | 0.57 | Below break-even |
Break-even price
$602,236
~35% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$321,264
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$8,105/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $6,348 · peaks at $8,258 in Oct
Annual avg 56% · peaks at 76% in Mar
−$1,603/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$267,815
Return on cash:10.1%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.65 · lenders typically require 1.0+.
Get matched with 2–3 vetted STR lenders, free.
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
12.4%
over 5-yr hold, with tax shield
Equity multiple
1.7×
total proceeds vs. $267,815 invested
Projected value at exit
$1,178,646
year 5 · 5.0% annual appreciation
Tax shield contribution
+6.3 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $237,911 | $46,175 | $65,163 | $349,248 |
| Year 2 | $245,455 | $94,659 | $47,069 | $387,183 |
| Year 3 | $253,545 | $145,567 | $30,136 | $429,247 |
| Year 4 | $262,219 | $199,020 | $14,379 | $475,619 |
| Year 5 | $271,521 | $255,146 | -$182 | $526,485 |
Projection, not a promise.
Assumes 5.0% annual appreciation, 1.5% rent growth (operating costs held flat), and that the property qualifies for short-term-rental tax treatment. The year-1 depreciation shield depends on a real cost-segregation study and your tax situation — consult a CPA.
Appreciation is the dominant driver of this return. When cash flow is negative, the deal depends on the property gaining value — it is not paying for itself from income.
Appreciation, rent growth, and financing rates are editable under Edit financials.
STR deals turn on local rules and demand that a generalist agent misses. Chalet matches you with a vetted Sedona agent who knows which properties actually cash flow — and which to avoid.
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Real Estate Investment Analysis & Market Insights
Disclaimer
This page and the data presented are for informational purposes only. The information provided should not be construed as financial, legal, or investment advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always consult with qualified professionals before making investment decisions.
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Daily Rate
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