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8338 E Monterosa St, Scottsdale, AZ 85251, 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
$64,188
$5,349/mo · at 62% occupancy & $339/night
-$29,953
-$2,496/mo after costs & mortgage
Cap rate
2.8%
Cash-on-cash
-11.5%
DSCR
0.46
Confidence
Your assumptions
Revenue
$64,188/yr
Market avg: $64,188/yr · 62% occ · $339 ADR
Financing
$55,482/yr
Operating costs
$38,659/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$231–$627
Median $336
27%–94%
Median 63%
$37.9K–$167.1K
Median $58.4K
191–365
Median 298
This property · $64.2K
Comparable properties (50)
Cash flow potential Low · Appreciation potential Medium
365 days available · 270 days booked ·
277 days available · 223 days booked ·
365 days available · 244 days booked ·
327 days available · 222 days booked ·
365 days available · 313 days booked ·
318 days available · 213 days booked ·
314 days available · 210 days booked ·
309 days available · 143 days booked ·
291 days available · 225 days booked ·
332 days available · 239 days booked ·
294 days available · 185 days booked ·
323 days available · 257 days booked ·
337 days available · 260 days booked ·
281 days available · 240 days booked ·
299 days available · 124 days booked ·
287 days available · 139 days booked ·
323 days available · 216 days booked ·
312 days available · 210 days booked ·
318 days available · 164 days booked ·
283 days available · 174 days booked ·
273 days available · 144 days booked ·
318 days available · 141 days booked ·
304 days available · 145 days booked ·
264 days available · 162 days booked ·
191 days available · 144 days booked ·
285 days available · 164 days booked ·
277 days available · 126 days booked ·
342 days available · 209 days booked ·
252 days available · 153 days booked ·
331 days available · 192 days booked ·
226 days available · 166 days booked ·
241 days available · 91 days booked ·
343 days available · 154 days booked ·
347 days available · 217 days booked ·
235 days available · 219 days booked ·
365 days available · 183 days booked ·
276 days available · 164 days booked ·
254 days available · 159 days booked ·
296 days available · 180 days booked ·
365 days available · 197 days booked ·
266 days available · 111 days booked ·
276 days available · 119 days booked ·
330 days available · 89 days booked ·
274 days available · 107 days booked ·
315 days available · 178 days booked ·
258 days available · 154 days booked ·
266 days available · 193 days booked ·
234 days available · 126 days booked ·
207 days available · 177 days booked ·
324 days available · 175 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
~$228.9K
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
$426.4K
Break-even purchase price
Break-even is ~54% below the Zestimate, a discount sellers in Scottsdale rarely accept. Treat the number as a walk-away line rather than an opening offer.
DSCR cash-flow buyer
0.46
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 Scottsdale submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$228.9K
Estimated first-year deduction · range $190.0K–$260.9K
Why this matters here
At a marginal bracket, this deduction can be worth $70.3K–$96.5K 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 -11.5%, DSCR 0.46, cash flow -$29,953/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $694,950 | -8.0% | 0.61 | Below break-even |
| -22% | $722,748 | -8.5% | 0.59 | Below break-even |
| -15% | $787,610 | -9.6% | 0.54 | Below break-even |
| -8% | $852,472 | -10.6% | 0.50 | Below break-even |
| Asking | $926,600 | -11.5% | 0.46 | Below break-even |
| +8% | $1,000,728 | -12.3% | 0.43 | Below break-even |
| +15% | $1,065,590 | -12.9% | 0.40 | Below break-even |
Break-even price
$426,357
~54% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$500,243
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$8,132/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $5,349 · peaks at $9,158 in Feb
Annual avg 61% · peaks at 79% in Mar
−$2,496/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$268,714
Return on cash:6.1%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.46 · 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
8.7%
over 5-yr hold, with tax shield
Equity multiple
1.5×
total proceeds vs. $268,714 invested
Projected value at exit
$1,182,602
year 5 · 5.0% annual appreciation
Tax shield contribution
+5.9 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $238,709 | $46,330 | $54,729 | $339,768 |
| Year 2 | $246,279 | $94,977 | $25,739 | $366,994 |
| Year 3 | $254,396 | $146,055 | -$2,274 | $398,177 |
| Year 4 | $263,100 | $199,688 | -$29,295 | $433,493 |
| Year 5 | $272,433 | $256,002 | -$55,309 | $473,126 |
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 Scottsdale agent who knows which properties actually cash flow — and which to avoid.
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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.