6347 Las Colinas

Rancho Santa Fe, CA 92067

$3,360,000C

6 bd · 4.0 ba · 4,194 sqft · Built 1973 · SingleFamily · Pending · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $27,059/mo
• Mortgage (P&I): −$17,620
• Tax + insurance: −$3,728
• HOA: −$0
• Vac / Maint / Mgmt: −$5,682
• Net cashflow: $28/mo
• Annual: $341/yr
• Cap rate: 6.30%
• Cash-on-cash: 0.04%
• DSCR: 1.00
• 1% rule: 0.81%
• Cash to close: $940,800

Investor read

• This is a 6-bed/4.0-bath single-family listed at $3.36M.
• At list price, monthly cash flow is $28 ($341/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.71M (19.5% below list).
• It's been on market 97 days — a 9% lower offer ($3.06M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.71M (19.5% below list) — sets the bar for 1% rule.
• In year one you build about $190k of equity ($23k loan paydown + $167k appreciation (5.0% local appreciation)).
• Location reads 63/100 on livability (#462 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: commute C-, housing D, amenities F.
• San Dieguito Union High (urban): math 72% / reading 79% proficiency, ranked #56 of 1,400 in CA (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: 146 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• 20 sale attempts since 24y ago; this cycle's ask is 23900% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $2.60M; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.0% appreciation + 3.0% rent growth), your $941k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$305k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.3% vs local median 0.9% in Rancho Santa Fe — 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 97 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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 A-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?
• 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.