1150 S Meadow Ln #6

Colton, CA 92324

$238,888F

1 bd · 1.0 ba · 695 sqft · Built 1980 · Condo · Active · 122 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,634/mo
• Mortgage (P&I): −$1,253
• Tax + insurance: −$398
• HOA: −$314
• Vac / Maint / Mgmt: −$343
• Net cashflow: $-674/mo
• Annual: $-8,092/yr
• Cap rate: 2.91%
• Cash-on-cash: -12.10%
• DSCR: 0.46
• 1% rule: 0.68%
• Cash to close: $66,889

Investor read

• This is a 1-bed/1.0-bath condo listed at $239k. Condition is rated good.
• At list price, monthly cash flow is $-674 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $141k (40.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (31.6% below list).
• It's been on market 122 days — a 12% lower offer ($210k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $141k (40.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#817 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A+; Watch: employment C-, crime D, amenities F.
• Colton Joint Unified (suburban): math 16% / reading 38% proficiency, ranked #373 of 517 in CA (top 72%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cooley Ranch Elementary (498 students, 84% FRL); Terrace Hills Middle (math 18% / reading 33%, grade F, #260 of 498 statewide, top 54%, 838 students, 74% FRL); Grand Terrace High Sch At The Ray Abril Jr. Edal Complex (math 20% / reading 58%, grade F, #558 of 1,170 statewide, top 48%, 1,726 students, 68% FRL).
• Market conditions: Rents rising (+2.5%/yr); 155 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); 5,458 units permitted in San Bernardino County in 2024 (1,500 in 5+ unit buildings).
• San Bernardino County population projected at +15% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 10 sale attempts since 26y 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: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 122 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• 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?
• 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 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?