1541 8th Ave

San Diego, CA 92101

$5,550,000F

100 bd · 600.0 ba · 1,640 sqft · Built 2000 · MultiFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,003/mo
• Mortgage (P&I): −$29,105
• Tax + insurance: −$8,023
• HOA: −$0
• Vac / Maint / Mgmt: −$1,261
• Net cashflow: $-32,385/mo
• Annual: $-388,620/yr
• Cap rate: -0.71%
• Cash-on-cash: -25.01%
• DSCR: -0.11
• 1% rule: 0.11%
• Cash to close: $1,554,000

Investor read

• This is a 2 × 1-bed/1-bath units multifamily listed at $5.55M.
• At list price, monthly cash flow is $-32k ($-389k/yr) — negative. Per door: $-16k/mo.
• To cash-flow at today's rent, offer at most $686k (87.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $600k (89.2% below list).
• It's been on market 41 days — a 3% lower offer ($5.38M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $600k (89.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.8%/yr); year-one equity from $38k of loan paydown is wiped out by about $101k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#123 in CA, #4,206 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: health & safety C-, crime D+, cost of living F.
• San Diego Unified (urban): math 19% / reading 29% proficiency, ranked #393 of 517 in CA (top 76%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Washington Elementary (257 students, 69% FRL); Roosevelt International Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 761 students, 59% FRL); San Diego High (2,105 students, 62% FRL).
• Market conditions: Rents flat; 521 active listings in the ZIP; solid renter incomes; 11,759 units permitted in San Diego County in 2024 (7,244 in 5+ unit buildings).
• San Diego County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $1.75M; list at $5.55M implies a 217% gain — meaningful room to come down on a strong offer.
• Cap rate -0.7% vs local median 2.0% in San Diego — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $6,003/mo this rent would consume 79% of the median local household income ($92k/yr) (locally 5603% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 41 days. Have you received any prior offers? Is the seller open to a 89% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?
• Crime grade is D 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?
• 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?