700 Blair Ave

Calexico, CA 92231

$1,139,000B-

42 bd · 21.0 ba · 4,710 sqft · Built — · MultiFamily · Active · 237 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,385/mo
• Mortgage (P&I): −$5,973
• Tax + insurance: −$1,199
• HOA: −$0
• Vac / Maint / Mgmt: −$3,651
• Net cashflow: $6,562/mo
• Annual: $78,741/yr
• Cap rate: 13.21%
• Cash-on-cash: 24.69%
• DSCR: 2.10
• 1% rule: 1.53%
• Cash to close: $318,920

Investor read

• This is a 14 × 3-bed/?-bath units multifamily listed at $1.14M.
• At list price, monthly cash flow is $7k ($79k/yr) — positive. Per door: $469/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $1.14M).
• It's been on market 237 days — a 12% lower offer ($1.00M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.00M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $34k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#389 in CA) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A-, amenities B+; Watch: cost of living D, commute F, employment F.
• Calexico Unified (suburban): math 29% / reading 48% proficiency, ranked #259 of 517 in CA (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Dool Elementary (645 students, 93% FRL); Enrique Camarena Jr. High (669 students, 86% FRL); Calexico High (math 30% / reading 49%, grade F, #532 of 1,170 statewide, top 48%, 2,836 students, 80% FRL).
• Market conditions: 58 active listings in the ZIP; 271 units permitted in Imperial County in 2024 (112 in 5+ unit buildings).
• Imperial County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 8y ago; this cycle's ask has dropped $160k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $304k; list at $1.14M implies a 275% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $319k cash investment doubles in ~5 years — after that, you're playing with house money.
• 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 13.2% vs local median 3.8% in Calexico — 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 237 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?
• 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?
• 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.