274 E Kingman St

San Bernardino, CA 92410

$669,400F

9 bd · 9.0 ba · 1,452 sqft · Built 1955 · MultiFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,317/mo
• Mortgage (P&I): −$3,510
• Tax + insurance: −$1,116
• HOA: −$0
• Vac / Maint / Mgmt: −$907
• Net cashflow: $-1,216/mo
• Annual: $-14,588/yr
• Cap rate: 4.11%
• Cash-on-cash: -7.78%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $187,432

Investor read

• This is a 3 × 1-bed/1.0-bath units multifamily listed at $669k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative. Per door: $-405/mo.
• To cash-flow at today's rent, offer at most $493k (26.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $432k (35.5% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $432k (35.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• 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: Captain Leland Norton Elementary (472 students, 96% FRL); Arrowview Middle (968 students, 97% FRL); Indian Springs High (1,901 students, 92% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.5%/yr); 88 active listings in the ZIP; 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.
• Current owner paid $415k; list at $669k implies a 61% gain — meaningful room to come down on a strong offer.
• 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.
• At $4,317/mo this rent would consume 96% of the median local household income ($54k/yr) (locally 2569% 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?
• 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?
• Built in 1955 — 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?
• 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?