1725 Linnet

Wrightwood, CA 92397

$418,000D+

3 bd · 2.0 ba · 1,836 sqft · Built 1976 · SingleFamily · Active · 210 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,273/mo
• Mortgage (P&I): −$2,192
• Tax + insurance: −$772
• HOA: −$0
• Vac / Maint / Mgmt: −$687
• Net cashflow: $-379/mo
• Annual: $-4,543/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.66%
• DSCR: 0.97
• 1% rule: 0.78%
• Cash to close: $117,040

Investor read

• This is a 3-bed/2.0-bath single-family listed at $418k.
• At list price, monthly cash flow is $-379 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $351k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $327k (21.7% below list).
• It's been on market 210 days — a 12% lower offer ($368k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $327k (21.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 49/100 on livability (#1,155 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A-, employment B; Watch: amenities F, commute F, cost of living F.
• Snowline Joint Unified (rural): math 34% / reading 44% proficiency, ranked #722 of 1,400 in CA (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $314/mo.
• Market conditions: 104 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 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.
• 2 sale attempts since 24y ago; this cycle's ask has dropped $32k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $203k; list at $418k implies a 106% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 4.1% in Wrightwood — 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

• 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?
• It's been on market 210 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 B-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?
• 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?