7645 Pacific Ave · Lemon Grove, CA 91945

$9,200,000

2268 bd · 1764.0 ba · 7,152 sqft · MultiFamily public records · 1 Days on market

Built 1969

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +9.2/10.0
• ARV discount +7.5/15.0
• Livability +3.2/5.0
• Rent growth +2.9/5.0
• Condition / age +2.5/5.0
• Schools +2.2/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 42 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Pleased to present 7645 Pacific Avenue, a 42-unit gated multifamily community built in 1969 and located in the heart of Lemon Grove, CA. The property features a desirable unit mix of 30 one-bedroom/one-bath units and 12 two-bedroom/one-bath units, catering to a broad tenant base in an affordability-driven submarket. The property features a private courtyard pool, gas BBQ area, onsite laundry room with three washer and three dryers and secure gated entry. The asset has benefited from significant capital improvements, reducing near-term deferred maintenance and enhancing operational efficiency. Recent upgrades include a full roof replacement (2011, with warranty through 2031), upgraded electr

Key facts

• Gas bbq area
• Secure gated entry
• Onsite laundry room

Tags

• GATED MULTIFAMILY COMMUNITY
• PRIVATE COURTYARD POOL
• GAS BBQ AREA
• ONSITE LAUNDRY ROOM
• SECURE GATED ENTRY
• FULL ROOF REPLACEMENT

Property features AI

Exterior

• Home design: Residential income property (Commercial-Residential Income)
• Construction: Approximately 27,125 total square feet

Interior

• Bathrooms: 42 full bathrooms
• Interior features: 42 full bathrooms

What this means for you Summary

Snapshot

• This is a 42 × 54-bed/42.0-bath units multifamily listed at $9.20M.

Deal economics

• At list price, monthly cash flow is $45k ($541k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($131k rent vs $9.20M).
• Cap rate 12.2% vs local median 2.8% in Lemon Grove — 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.

Location & tenants

• Location reads 64/100 on livability (#411 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+; Watch: crime C-, amenities D, schools D-.
• Lemon Grove (suburban): math 25% / reading 25% proficiency, ranked #389 of 517 in CA (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+1.7%/yr); 44 active listings in the ZIP; solid renter incomes; 11,759 units permitted in San Diego County in 2024 (7,244 in 5+ unit buildings).
• At $130,554/mo this rent would consume 1780% of the median local household income ($88k/yr) (locally 1363% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $64k of loan paydown is wiped out by about $276k of value loss. Plan a longer hold.
• San Diego County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 1.7% rent growth), your $2.58M cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 6 sale attempts since 3y 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.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $9,200,000

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.42% ✓
• Cap rate: 12.17%
• Cash-on-cash: 20.99%
• DSCR: 1.93
• GRM: 5.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 1.74% rent growth · sell at horizon

5-year hold

• IRR: 12.0%
• Equity multiple: 1.47×
• Total profit: $1,214,530
• Equity at exit: $1,371,750

10-year hold

• IRR: 20.0%
• Equity multiple: 2.59×
• Total profit: $4,093,723
• Equity at exit: $795,448

Cash invested: $2,576,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 91945

• Rents YoY: 1.7%
• Active inventory: 44
• Price-to-rent: 246.6×

Monthly cashflow live

• Estimated rent: $130,554 medium
• Mortgage (P&I): −$48,246
• Tax from tax record: −$5,994 /mo · $71,923/yr
• Insurance: −$3,833
• HOA: −$0
• Vacancy / Maint / Mgmt: −$27,416
• Net cashflow: $45,065

Break-even live

Break-even rent $73,510

Max offer price $9,200,000

Occupancy floor 60%

42-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 42× units	54	42	$130,536
Total (42 units)			$130,554

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $2,300,000
• Closing costs: $276,000
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-06-19
   remarks 699-char remark
2. 2026-06-19
   listed $9,200,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $71,923 · $5,994/mo
• Projected year-2 tax: $71,923 · $5,994/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥91°F today · 19 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $1,566,648
• − Mortgage interest: −$515,343
• − Property taxes: −$71,923
• − Insurance: −$46,000
• − Repairs & maintenance: −$125,332
• − Management: −$125,332
• − Depreciation: −$267,636
• Taxable income: $415,082
• Est. tax owed @ 24.0%: −$99,620
• After-tax cash flow: $441,160/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Lemon Grove
• NCES district ID: 0621330
• Math proficiency: 25% ▼ -9.00%
• Reading proficiency: 25% ▼ -21.00%
• Median HH income: $54,160
• Composite: 22.46/100
• National rank: #8104
• State rank: #389 of 517 in CA

Livability — Lemon Grove

• Score: 64/100
• State rank: #411
• US rank: #14041

Category grades

Amenities D Commute A+ Cost of living F Crime C- Employment B- Housing C+ Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lemon Grove, CA
• County: San Diego County · 3,178,799 people
• City population: 27,745
• Metro: San Diego-Chula Vista-Carlsbad, CA
• Population (ZIP): 27,745
• Household income: $88,016
• Rent vs Own: 47.5% rent · 52.5% own
• Severe rent burden: 1363.0

Population outlook (San Diego County) Hauer SSP2

• Today (2025): 3,678,185 people
• By 2030: 3,856,546 · +4.8%
• By 2040: 4,171,407 · +13.4%
• By 2050: 4,421,607 · +20.2%
• By 2075: 4,831,599 · +31.4%
• By 2100: 4,832,502 · +31.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.70)
• Race & ethnicity: Hispanic / Latino 44% White 27% Two or more races 21% Black 15% Asian 8% Native American 2%
• Hispanic origin (detail): Mexican 42%
• Common ancestry: Lithuanian 2% Romanian 1% Slovak 1%
• Foreign-born: 17% · Canada, Vietnam
• Languages at home: 61% English-only · Spanish 30% Tagalog/Filipino 3% Other Asian/Pacific 2%

Political lean MEDSL · San Diego

• 2024 margin: D (+16.8) · D 56.9% · R 40.1% · Other 2.9%
• 2008→2024 swing: +6.6pp toward D · 2008: 10.2pp · 2024: 16.8pp
• All cycles: 2024: D+16.8 2020: D+22.8 2016: D+17.8 2012: D+5.1 2008: D+10.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -538.04%
• Current HPI: 419.0006
• Rent YoY: ▲ 1.74%
• Metro: San Diego-Chula Vista-Carlsbad, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+587759.4% since first listed

12 events — show timeline

• 2026-06-18 Listed $9,200,000 SDMLS
• 2025-01-19 Rental Removed $1,755 APPFOLIO
• 2025-01-19 Rental Removed $1,755 APPFOLIO
• 2025-01-01 Listed for Rent $1,755 APPFOLIO
• 2024-12-31 Price Changed $1,755 APPFOLIO
• 2024-12-28 Listed for Rent $1,785 APPFOLIO
• 2024-12-03 Rental Removed $1,995 APPFOLIO
• 2024-11-13 Listed for Rent $1,995 APPFOLIO
• 2024-11-07 Rental Removed $2,005 APPFOLIO
• 2024-11-01 Listed for Rent $2,005 APPFOLIO
• 2023-12-01 Rental Removed $1,565 APPFOLIO
• 2023-11-14 Listed for Rent $1,565 APPFOLIO

Property tax history

+4.7%/yr

Latest (2025): $71,923 · +6.1% YoY. Source: county tax records.