2208 Royal Dr #32

Fortuna, CA 95540

$62,500B-

2 bd · 1.0 ba · 800 sqft · Built 1972 · Manufactured · Active · 221 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,332/mo
• Mortgage (P&I): −$328
• Tax + insurance: −$104
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $620/mo
• Annual: $7,446/yr
• Cap rate: 18.21%
• Cash-on-cash: 42.55%
• DSCR: 2.89
• 1% rule: 2.13%
• Cash to close: $17,500

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $62k.
• At list price, monthly cash flow is $620 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $62k).
• It's been on market 221 days — a 12% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $432 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#246 in CA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A-; Watch: employment D+, amenities F, cost of living F.
• Fortuna Union High (town): math 17% / reading 44% proficiency, ranked #350 of 517 in CA (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Linell K. Walker Elementary (math 17% / reading 27%, grade F, #1,179 of 1,571 statewide, top 78%, 294 students, 82% FRL); Fortuna Middle (math 10% / reading 24%, grade F, #443 of 498 statewide, top 90%, 237 students, 80% FRL); Fortuna Union High (math 12% / reading 37%, grade F, #826 of 1,170 statewide, top 80%, 830 students, 47% FRL).
• Market conditions: 110 active listings in the ZIP; 188 units permitted in Humboldt County in 2024 (17 in 5+ unit buildings).
• Humboldt County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 11y ago 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.
• Current owner paid $30k; list at $62k implies a 108% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 18.2% vs local median 2.4% in Fortuna — 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 221 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1972 — 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.
• 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.