604 E Buena Vis

Barstow, CA 92311

$460,000B-

48 bd · 42.0 ba · 3,524 sqft · Built 1947 · MultiFamily · Active · 104 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,049/mo
• Mortgage (P&I): −$2,412
• Tax + insurance: −$920
• HOA: −$0
• Vac / Maint / Mgmt: −$1,480
• Net cashflow: $2,236/mo
• Annual: $26,838/yr
• Cap rate: 12.13%
• Cash-on-cash: 20.84%
• DSCR: 1.93
• 1% rule: 1.53%
• Cash to close: $128,800

Investor read

• This is a 1×2bd/2ba + 1×2bd/1ba + 4×1bd/1ba units multifamily listed at $460k.
• At list price, monthly cash flow is $2k ($27k/yr) — positive. Per door: $373/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $460k).
• It's been on market 104 days — a 9% lower offer ($419k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $419k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#444 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+; Watch: amenities C-, health & safety C-, crime F.
• Barstow Unified (town): math 11% / reading 22% proficiency, ranked #482 of 517 in CA (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Montara Elementary (math 7% / reading 11%, grade F, #1,544 of 1,571 statewide, top 98%, 539 students, 87% FRL); Barstow Junior High (math 4% / reading 13%, grade F, #495 of 498 statewide, top 100%, 742 students, 80% FRL); Barstow High (math 22% / reading 47%, grade F, #618 of 1,170 statewide, top 56%, 1,584 students, 67% FRL).
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.3%/yr); 349 active listings in the ZIP; 5,458 units permitted in San Bernardino County in 2024 (1,500 in 5+ unit buildings).
• San Bernardino County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 2.3% rent growth), your $129k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.1% vs local median 4.5% in Barstow — 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 $7,049/mo this rent would consume 137% of the median local household income ($62k/yr) (locally 1305% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 104 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• 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?
• Built in 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?