103 E 2nd St

Imperial, CA 92251

$650,000C

8 bd · 4.0 ba · 3,064 sqft · Built 1983 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,564/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$1,588
• Net cashflow: $2,147/mo
• Annual: $25,758/yr
• Cap rate: 10.26%
• Cash-on-cash: 14.15%
• DSCR: 1.63
• 1% rule: 1.16%
• Cash to close: $182,000

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $650k.
• At list price, monthly cash flow is $2k ($26k/yr) — positive. Per door: $537/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $650k).
• It's been on market 28 days — a 2% lower offer ($640k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $640k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#286 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, employment A-; Watch: amenities F, commute F, cost of living F.
• Imperial Unified (suburban): math 21% / reading 44% proficiency, ranked #281 of 517 in CA (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ben Hulse Elementary (math 25% / reading 43%, grade F, #755 of 1,571 statewide, top 49%, 794 students, 57% FRL); Frank M. Wright Middle (math 20% / reading 45%, grade F, #202 of 498 statewide, top 41%, 1,023 students, 61% FRL); Imperial High (math 17% / reading 60%, grade F, #567 of 1,170 statewide, top 49%, 1,362 students, 53% FRL) — zoned schools average 57% FRL vs 36% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 119 active listings in the ZIP; solid renter incomes; 271 units permitted in Imperial County in 2024 (112 in 5+ unit buildings).
• Imperial County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $396k; list at $650k implies a 64% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $182k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.3% vs local median 3.9% in Imperial — 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.
• At $7,564/mo this rent would consume 100% of the median local household income ($91k/yr) (locally 410% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.