221-225 D Ave

Coronado, CA 92118

$3,600,000D

None bd · None ba · 2,900 sqft · Built 1955 · MultiFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $29,350/mo
• Mortgage (P&I): −$18,879
• Tax + insurance: −$6,000
• HOA: −$0
• Vac / Maint / Mgmt: −$6,164
• Net cashflow: $-1,692/mo
• Annual: $-20,308/yr
• Cap rate: 5.73%
• Cash-on-cash: -2.01%
• DSCR: 0.91
• 1% rule: 0.82%
• Cash to close: $1,008,000

Investor read

• This is a 7 × 2-bed/?-bath units multifamily listed at $3.60M.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative. Per door: $-242/mo.
• To cash-flow at today's rent, offer at most $3.36M (6.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.94M (18.5% below list).
• It's been on market 55 days — a 3% lower offer ($3.49M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.94M (18.5% below list) — sets the bar for 1% rule.
• In year one you build about $76k of equity ($25k loan paydown + $51k appreciation (1.4% local appreciation)).
• Location reads 69/100 on livability (#249 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, amenities A-; Watch: cost of living F, health & safety F.
• Coronado Unified (suburban): math 61% / reading 77% proficiency, ranked #47 of 517 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Coronado Village Elementary (math 68% / reading 76%, grade A-, #122 of 1,571 statewide, top 8%, 780 students, 15% FRL); Coronado Middle (math 54% / reading 75%, grade A-, #45 of 498 statewide, top 9%, 641 students, 16% FRL); Coronado High (math 67% / reading 87%, grade A-, #61 of 1,170 statewide, top 5%, 1,045 students, 15% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.4%/yr); 161 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 53% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Current owner paid $75k; list at $3.60M implies a 4700% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$267k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.7% vs local median 0.9% in Coronado — 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.
• At $29,350/mo this rent would consume 262% of the median local household income ($135k/yr) (locally 1052% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 55 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?