82451 John Nobles

Indio, CA 92201

$5,695,000C-

72 bd · 36.0 ba · 25,200 sqft · Built 1972 · MultiFamily · Active · 150 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $57,426/mo
• Mortgage (P&I): −$29,865
• Tax + insurance: −$7,676
• HOA: −$0
• Vac / Maint / Mgmt: −$12,059
• Net cashflow: $7,825/mo
• Annual: $93,900/yr
• Cap rate: 7.94%
• Cash-on-cash: 5.89%
• DSCR: 1.26
• 1% rule: 1.01%
• Cash to close: $1,594,600

Investor read

• This is a 24 × 3.0-bed/1.5-bath units multifamily listed at $5.70M.
• At list price, monthly cash flow is $8k ($94k/yr) — positive. Per door: $326/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($57k rent vs $5.70M).
• It's been on market 150 days — a 12% lower offer ($5.01M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.01M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $39k of loan paydown is wiped out by about $171k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#927 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing B+; Watch: employment D, crime F, amenities F.
• Desert Sands Unified (suburban): math 31% / reading 56% proficiency, ranked #199 of 517 in CA (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Theodore Roosevelt Elementary (492 students, 86% FRL); Thomas Jefferson Middle (538 students, 93% FRL); Indio High (math 15% / reading 42%, grade F, #774 of 1,170 statewide, top 66%, 2,143 students, 92% FRL) — zoned schools average 90% FRL vs 56% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 28% at this address vs 44% district-wide (-15 pts) — the specific schools serving this property underperform the Desert Sands Unified average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+3.3%/yr); 515 active listings in the ZIP; 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 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.
• Current owner paid $380k; list at $5.70M implies a 1399% gain — meaningful room to come down on a strong offer.
• 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.
• Cap rate 7.9% vs local median 4.3% in Indio — 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 $57,426/mo this rent would consume 1032% of the median local household income ($67k/yr) (locally 2036% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 150 days. Have you received any prior offers? Is the seller open to a 12% 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 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.
• Schools are F-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?