06 · INVESTOR ANGLE
R-2 lot. No HOA. DMAFB rental demand.
Three plays for a cash buyer or small landlord. The ADU option is the most interesting one.
THE SETUP
What makes this parcel interesting to an investor.
- R-2 zoning: Arizona HB 2570 (Jan 2026) allows an ADU or duplex on any R-2 lot. No HOA means no association veto. This parcel qualifies.
- DMAFB demand: 7,900 active-duty personnel at Davis-Monthan generate durable year-round rental demand 2 to 3 miles away. PCS cycles keep vacancy low.
- No HOA: Zero association fees, zero CC&R restrictions on rental use, number of tenants, or vehicle storage.
- Repair upside: HVAC replacement ($5,000 to $9,000) unlocks both rental quality and resale ceiling. Solar lien clears at close; panels may or may not be repairable by a third-party servicer.
PLAY 1 · BUY AND HOLD
Single-family rental near DMAFB.
| Purchase price | $270,000 |
| HVAC replacement (est.) | ($7,000) |
| All-in basis (est.) | $277,000 |
| Monthly rent (SE Tucson, 4BD near DMAFB) | $1,600 to $1,900 |
| Annual gross rent | $19,200 to $22,800 |
| Annual NET (est., after tax/ins/vacancy 25%) | $14,400 to $17,100 |
| Gross yield on basis | 6.9% to 8.2% |
Rent estimate based on 85730 active rentals near DMAFB, 4BD single-level, no pool. Verify with a property manager before committing.
PLAY 2 · ADU BUILD
Add a second unit under R-2 zoning.
R-2 on a 0.20-acre (8,719 sf) lot allows an ADU up to roughly 1,000 sf under Arizona’s 2026 rules. A detached studio or one-bedroom ADU on this parcel adds a second income stream without subdividing.
| ADU build cost (est., 500 to 800 sf) | $80,000 to $130,000 |
| ADU monthly rent | $800 to $1,100 |
| ADU annual NET (est., 25% expenses) | $7,200 to $9,900 |
| Combined annual NET (both units, est.) | $21,600 to $27,000 |
| Combined yield on total basis | 6.0% to 7.5% |
ADU cost and yield are estimates. Engage a Tucson ADU builder and a property manager before underwriting. Permitting timelines vary.
PLAY 3 · HOUSE-HACK
Owner-occupant with a future ADU.
A buyer who lives in the main home and builds an ADU later can combine an FHA or conventional owner-occupant rate with a future rental income stream. 3.5% FHA down on $270K is under $10K. The ADU income, once built, reduces effective housing cost to near-zero in a DMAFB rental market.
- FHA 3.5% down: $9,450
- Monthly payment at 7% on $260,550: ~$1,734
- ADU rent offset (future): $800 to $1,100 per month
- Effective housing cost after ADU: $634 to $934 per month
Mortgage rates and FHA terms vary. Talk to a lender. These numbers are illustrative only.
CONDITIONS TO UNDERWRITE
The two items that affect every play.
- HVAC: Dead 1998 R-22 system. R-22 refrigerant is discontinued. Full replacement required. Estimate $5,000 to $9,000 for a modern split system. Budget conservatively.
- Solar lien: Connexus / Solar Mosaic UCC, Doc 20221710574, face $25,000 to $35,000. Resolves at closing from proceeds. Panels non-operational; installer defunct. A solar repair specialist may be able to bring them back online; verify before assuming zero production.
COMPARABLE RENTALS · 85730 NEAR DMAFB
Active rental comps supporting the $1,600 to $1,900 estimate.
SE Tucson 4-bedroom single-family rentals within 3 miles of DMAFB currently list at $1,550 to $2,000 per month depending on condition and garage. Properties with working HVAC and updated kitchens command the top of that band. As-is condition after HVAC repair puts this home squarely at $1,600 to $1,750.
Rental estimates are not guaranteed. Verify current rents with a local property manager before closing.
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