1001 E Grant St

Santa Ana, CA 92701

$449,800D

2 bd · 1.5 ba · 870 sqft · Built 1964 · MultiFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,085/mo
• Mortgage (P&I): −$2,359
• Tax + insurance: −$750
• HOA: −$275
• Vac / Maint / Mgmt: −$858
• Net cashflow: $-156/mo
• Annual: $-1,876/yr
• Cap rate: 5.88%
• Cash-on-cash: -1.49%
• DSCR: 0.93
• 1% rule: 0.91%
• Cash to close: $125,944

Investor read

• This is a 2-bed/1.5-bath multifamily listed at $450k. Condition is rated fair.
• At list price, monthly cash flow is $-156 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $427k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $408k (9.2% below list).
• It's been on market 88 days — a 6% lower offer ($423k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $408k (9.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 55/100 on livability (#871 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A; Watch: crime D-, amenities F, commute F.
• Santa Ana Unified (urban): math 23% / reading 37% proficiency, ranked #329 of 517 in CA (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 83% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Greenville Fundamental Elementary (math 32% / reading 36%, grade F, #755 of 1,571 statewide, top 49%, 907 students, 66% FRL); Gonzalo Felicitas Mendez Fundamental Intermediate (1,293 students, 76% FRL); Hector G. Godinez (math 31% / reading 51%, grade F, #502 of 1,170 statewide, top 43%, 2,026 students, 72% FRL).
• Market conditions: Rents rising (+2.7%/yr); 92 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 76d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 82% of comp listings sitting > 30 days — soft ceiling on asking rent; 6,974 units permitted in Orange County in 2024 (3,839 in 5+ unit buildings).
• Orange County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 18y 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.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 2.6% in Santa Ana — 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 $4,085/mo this rent would consume 69% of the median local household income ($71k/yr) — 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 88 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen backsplash — Some wear and discoloration.
• Minor: Bathroom walls — Some discoloration and minor wear.
• Minor: Exterior siding — Some discoloration and minor wear.
• Minor: Kitchen countertops — Some wear and discoloration.
• Minor: Interior walls — Paint chipped in some areas.
• Minor: Windows — Some frames show signs of wear.