814 America Way

Solana Beach, CA 92014

$949,990D+

2 bd · 2.0 ba · 1,208 sqft · Built 1985 · Townhouse · Active · 56 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,842/mo
• Mortgage (P&I): −$4,982
• Tax + insurance: −$1,094
• HOA: −$773
• Vac / Maint / Mgmt: −$1,227
• Net cashflow: $-2,234/mo
• Annual: $-26,807/yr
• Cap rate: 3.47%
• Cash-on-cash: -10.08%
• DSCR: 0.55
• 1% rule: 0.61%
• Cash to close: $265,997

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $950k.
• At list price, monthly cash flow is $-2k ($-27k/yr) — negative.
• To cash-flow at today's rent, offer at most $555k (41.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $584k (38.5% below list).
• It's been on market 56 days — a 3% lower offer ($921k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $555k (41.5% below list) — sets the bar for cash-flow.
• In year one you build about $54k of equity ($7k loan paydown + $47k appreciation (5.0% local appreciation)).
• Location reads 77/100 on livability (#81 in CA, #3,100 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, commute A+; Watch: amenities D+, health & safety D, cost of living F.
• Solana Beach Elementary (urban): math 82% / reading 86% proficiency, ranked #23 of 1,400 in CA (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 6% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising fast (+12.7%/yr); 82 active listings in the ZIP; 25 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 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.
• 10 sale attempts since 27y ago; this cycle's ask has dropped $100k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $480k; list at $950k implies a 98% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$86k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.5% vs local median 1.6% in Solana Beach — 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 runs 35% of the median local income ($199k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 56 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.