901 Deep Valley Dr #302

Rolling Hills Estates, CA 90274

$699,000D

2 bd · 2.0 ba · 930 sqft · Built 2008 · Condo · Active · 112 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,978/mo
• Mortgage (P&I): −$3,666
• Tax + insurance: −$939
• HOA: −$286
• Vac / Maint / Mgmt: −$835
• Net cashflow: $-1,749/mo
• Annual: $-20,982/yr
• Cap rate: 3.29%
• Cash-on-cash: -10.72%
• DSCR: 0.52
• 1% rule: 0.57%
• Cash to close: $195,720

Investor read

• This is a 2-bed/2.0-bath condo listed at $699k.
• At list price, monthly cash flow is $-2k ($-21k/yr) — negative.
• To cash-flow at today's rent, offer at most $390k (44.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $398k (43.1% below list).
• It's been on market 112 days — a 9% lower offer ($636k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $390k (44.2% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($5k loan paydown + $358 appreciation (0.1% local appreciation)).
• Location reads 75/100 on livability (#122 in CA, #4,273 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, employment A+, crime A; Watch: cost of living F, health & safety F.
• Palos Verdes Peninsula Unified (suburban): math 72% / reading 76% proficiency, ranked #51 of 1,400 in CA (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical; only 3% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+1.8%/yr); 127 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 7, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.3% vs local median 1.8% in Rolling Hills Estates — 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.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 112 days. Have you received any prior offers? Is the seller open to a 44% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?