82615 4th St

Searles Valley, CA 93562

$44,000B-

3 bd · 1.0 ba · 984 sqft · Built 1960 · SingleFamily · Pending · 109 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,000/mo
• Mortgage (P&I): −$231
• Tax + insurance: −$70
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $490/mo
• Annual: $5,876/yr
• Cap rate: 19.65%
• Cash-on-cash: 47.69%
• DSCR: 3.12
• 1% rule: 2.27%
• Cash to close: $12,320

Investor read

• This is a 3-bed/1.0-bath single-family listed at $44k.
• At list price, monthly cash flow is $490 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $44k).
• It's been on market 109 days — a 9% lower offer ($40k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $40k (9.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($304 loan paydown + $1k appreciation (3.0% local appreciation)).
• Location reads 62/100 on livability (#500 in CA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: health & safety C-, amenities F, commute F.
• Trona Joint Unified (rural): math 25% / reading 40% proficiency, ranked #1,004 of 1,400 in CA (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Trona Elementary (math 12% / reading 22%, grade F, #1,340 of 1,571 statewide, top 88%, 131 students, 71% FRL); Trona High (math 5% / reading 34%, grade F, #987 of 1,170 statewide, top 86%, 116 students, 76% FRL).
• Zoned-school proficiency averages 18% at this address vs 32% district-wide (-14 pts) — the specific schools serving this property underperform the Trona Joint Unified average; the district grade overstates school quality for this exact location.
• Market conditions: 55 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 3 sale attempts; this cycle's ask has dropped $5k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $12k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.6% vs local median 10.6% in Searles Valley — 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

• It's been on market 109 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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?
• 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.