1079 Magnolia Ave W

San Bernardino, CA 92411

$415,000C-

4 bd · 2.0 ba · 1,548 sqft · Built 1924 · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,264/mo
• Mortgage (P&I): −$2,176
• Tax + insurance: −$613
• HOA: −$0
• Vac / Maint / Mgmt: −$685
• Net cashflow: $-210/mo
• Annual: $-2,520/yr
• Cap rate: 5.69%
• Cash-on-cash: -2.17%
• DSCR: 0.90
• 1% rule: 0.79%
• Cash to close: $116,200

Investor read

• This is a 4-bed/2.0-bath single-family listed at $415k.
• At list price, monthly cash flow is $-210 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $378k (8.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $326k (21.3% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $326k (21.3% below list) — sets the bar for 1% rule.
• In year one you build about $44k of equity ($3k loan paydown + $42k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#661 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+, housing A; Watch: employment D, crime F, cost of living F.
• San Bernardino City Unified (urban): math 27% / reading 40% proficiency, ranked #959 of 1,400 in CA (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Roosevelt Elementary (517 students, 91% FRL); Martin Luther King Jr. Middle (635 students, 94% FRL); San Bernardino High (math 44% / reading 95%, grade B+, #112 of 1,170 statewide, top 10%, 1,480 students, 91% FRL).
• Zoned-school proficiency averages 70% at this address vs 34% district-wide (+36 pts) — the actual schools serving this property are materially stronger than the San Bernardino City Unified average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 41 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• By year 2, paydown + projected appreciation supports a ~$71k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 5.7% vs local median 3.5% in San Bernardino — 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 $3,264/mo this rent would consume 72% of the median local household income ($54k/yr) (locally 956% 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?
• Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• 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.