9588 Avenue H

Bombay Beach, CA 92257

$129,000B

2 bd · 1.0 ba · 1,020 sqft · Built 1972 · Land · Active · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,500/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$106
• HOA: −$0
• Vac / Maint / Mgmt: −$525
• Net cashflow: $1,193/mo
• Annual: $14,314/yr
• Cap rate: 17.39%
• Cash-on-cash: 39.63%
• DSCR: 2.76
• 1% rule: 1.94%
• Cash to close: $36,120

Investor read

• This is a 2-bed/1.0-bath land listed at $129k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $129k).
• It's been on market 159 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (12.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($892 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 44/100 on livability (#1,326 in CA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A, housing B+; Watch: crime F, amenities F, commute F.
• Calipatria Unified (town): math 9% / reading 27% proficiency, ranked #485 of 517 in CA (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 85% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Grace Smith Elementary (math 10% / reading 10%, grade F, #1,511 of 1,571 statewide, top 98%, 75 students, 96% FRL); Bill E. Young Jr. Middle (math 8% / reading 26%, grade F, #443 of 498 statewide, top 90%, 358 students, 90% FRL); Calipatria High (math 12% / reading 57%, grade F, #618 of 1,170 statewide, top 56%, 369 students, 80% FRL) — zoned schools at 89% FRL track the district average.
• Market conditions: 40 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 6→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 159 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1972 — 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?
• 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.