225 N Akers St #121

Visalia, CA 93291

$48,500C-

2 bd · 2.0 ba · 1,488 sqft · Built 1971 · Land · Pending · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,023/mo
• Mortgage (P&I): −$254
• Tax + insurance: −$507
• HOA: −$0
• Vac / Maint / Mgmt: −$425
• Net cashflow: $837/mo
• Annual: $10,042/yr
• Cap rate: 37.55%
• Cash-on-cash: 111.64%
• DSCR: 5.97
• 1% rule: 4.17%
• Cash to close: $13,580

Investor read

• This is a 2-bed/2.0-bath land listed at $48k.
• At list price, monthly cash flow is $837 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $48k).
• It's been on market 80 days — a 6% lower offer ($46k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $46k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $335 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#196 in CA) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, employment B; Watch: amenities D, crime D-, cost of living F.
• Visalia Unified (urban): math 30% / reading 40% proficiency, ranked #273 of 517 in CA (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hurley Elementary (math 70% / reading 70%, grade A-, #147 of 1,571 statewide, top 10%, 578 students, 50% FRL); Green Acres Middle (math 50% / reading 50%, grade C, #104 of 498 statewide, top 21%, 747 students, 66% FRL); Redwood High (math 50% / reading 90%, grade B+, #112 of 1,170 statewide, top 10%, 2,483 students, 44% FRL).
• Zoned-school proficiency averages 63% at this address vs 35% district-wide (+28 pts) — the actual schools serving this property are materially stronger than the Visalia Unified average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents rising (+3.1%/yr); 560 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 55% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,447 units permitted in Tulare County in 2024 (307 in 5+ unit buildings).
• Tulare County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.1% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 37.6% vs local median 3.3% in Visalia — 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.

Questions for listing agent

• It's been on market 80 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?
• 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.
• 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.