1414 Citrus

San Bernardino, CA 92404

$6,480,000F

72 bd · 3.5 ba · 30,780 sqft · Built 1963 · MultiFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,969/mo
• Mortgage (P&I): −$33,982
• Tax + insurance: −$7,236
• HOA: −$0
• Vac / Maint / Mgmt: −$1,463
• Net cashflow: $-35,713/mo
• Annual: $-428,553/yr
• Cap rate: -0.32%
• Cash-on-cash: -23.62%
• DSCR: -0.05
• 1% rule: 0.11%
• Cash to close: $1,814,400

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $6.48M.
• At list price, monthly cash flow is $-36k ($-429k/yr) — negative. Per door: $-9k/mo.
• To cash-flow at today's rent, offer at most $797k (87.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $697k (89.2% below list).
• It's been on market 54 days — a 3% lower offer ($6.29M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $697k (89.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $45k of loan paydown is wiped out by about $194k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#661 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A+, housing A; Watch: schools D, employment D, crime F.
• San Bernardino City Unified (urban): math 27% / reading 40% proficiency, ranked #959 of 1,400 in CA (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 81% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents flat; 102 active listings in the ZIP; 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.
• 5 sale attempts since 8y 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 $4.00M; list at $6.48M implies a 62% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; severe wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate -0.3% vs local median 3.5% in San Bernardino — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $6,969/mo this rent would consume 125% of the median local household income ($67k/yr) (locally 3423% 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 54 days. Have you received any prior offers? Is the seller open to a 89% 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 1963 — 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 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?