1441 Paso Real Ave #326

Rowland Heights, CA 91748

$238,000C+

4 bd · 3.0 ba · 1,440 sqft · Built 1974 · Manufactured · Active · 202 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,809/mo
• Mortgage (P&I): −$1,248
• Tax + insurance: −$161
• HOA: −$0
• Vac / Maint / Mgmt: −$800
• Net cashflow: $1,600/mo
• Annual: $19,202/yr
• Cap rate: 14.36%
• Cash-on-cash: 28.81%
• DSCR: 2.28
• 1% rule: 1.60%
• Cash to close: $66,640

Investor read

• This is a 4-bed/3.0-bath manufactured listed at $238k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $238k).
• It's been on market 202 days — a 12% lower offer ($209k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $209k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 50/100 on livability (#1,123 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A; Watch: crime C-, amenities F, commute F.
• Rowland Unified (suburban): math 40% / reading 62% proficiency, ranked #134 of 517 in CA (top 26%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Jellick Elementary (382 students, 82% FRL); Alvarado Intermediate (648 students, 73% FRL); John A. Rowland High (math 49% / reading 68%, grade C, #223 of 1,170 statewide, top 19%, 2,025 students, 67% FRL) — zoned schools average 74% FRL vs 56% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+10.3%/yr); 104 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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.
• 6 sale attempts since 17y 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 $70k; list at $238k implies a 240% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $67k cash investment doubles in ~4 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 14.4% vs local median 2.6% in Rowland Heights — 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 $3,809/mo this rent would consume 55% of the median local household income ($83k/yr) (locally 1440% 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 202 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1974 — 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.