13490 Highway 8 Business #18

Lakeside, CA 92040

$92,000B

1 bd · 1.0 ba · 460 sqft · Built 1964 · Manufactured · Active · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,332/mo
• Mortgage (P&I): −$482
• Tax + insurance: −$153
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $416/mo
• Annual: $4,998/yr
• Cap rate: 11.73%
• Cash-on-cash: 19.40%
• DSCR: 1.86
• 1% rule: 1.45%
• Cash to close: $25,760

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $92k. Condition is rated fair.
• At list price, monthly cash flow is $416 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $92k).
• It's been on market 61 days — a 6% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $636 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 55/100 on livability (#877 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A-, housing A-, health & safety B; Watch: commute D, crime D-, amenities F.
• Lakeside Union Elementary (suburban): math 41% / reading 52% proficiency, ranked #480 of 1,400 in CA (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lakeview Elementary (657 students, 24% FRL); Tierra Del Sol Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 718 students, 33% FRL); El Capitan High (math 20% / reading 54%, grade F, #578 of 1,170 statewide, top 51%, 1,825 students, 52% FRL) — zoned schools at 37% FRL track the district average.
• Zoned-school proficiency averages 31% at this address vs 46% district-wide (-16 pts) — the specific schools serving this property underperform the Lakeside Union Elementary average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+3.6%/yr); 243 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.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 3.6% rent growth), your $26k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 6→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.7% vs local median 2.6% in Lakeside — 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.
• This rent is only 15% of the median local income ($108k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1964 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Weathered and aged, likely needs repainting or replacement.
• Minor: Flooring — Carpeted flooring in living areas.
• Minor: Interior walls — Dated wood paneling.
• Major: Landscaping — Cluttered yard with various items and plants visible.