31989 Biagio Way

French Valley, CA 92596

$400,000D

2 bd · 2.0 ba · 1,056 sqft · Built 2005 · Condo · Active · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,982/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$521
• HOA: −$384
• Vac / Maint / Mgmt: −$626
• Net cashflow: $-647/mo
• Annual: $-7,763/yr
• Cap rate: 4.35%
• Cash-on-cash: -6.93%
• DSCR: 0.69
• 1% rule: 0.75%
• Cash to close: $112,000

Investor read

• This is a 2-bed/2.0-bath condo listed at $400k.
• At list price, monthly cash flow is $-647 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $286k (28.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $298k (25.5% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $286k (28.6% below list) — sets the bar for cash-flow.
• In year one you build about $43k of equity ($3k loan paydown + $40k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#655 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, housing A+; Watch: crime D-, amenities F, commute F.
• Temecula Valley Unified (urban): math 55% / reading 69% proficiency, ranked #173 of 1,400 in CA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: French Valley Elementary (880 students, 24% FRL); Bella Vista Middle (1,396 students, 26% FRL); Chaparral High (3,030 students, 27% FRL).
• Market conditions: Rents soft (-0.8%/yr); 353 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 9,195 units permitted in Riverside County in 2024 (1,512 in 5+ unit buildings).
• Riverside County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 19y 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 $195k; list at $400k implies a 105% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$69k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 4→13/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.4% vs local median 3.5% in French Valley — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 D 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?
• 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.