30505 Canyon Hls #2504

Lake Elsinore, CA 92532

$399,888D

2 bd · 2.5 ba · 1,274 sqft · Built 2007 · Condo · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,053/mo
• Mortgage (P&I): −$2,097
• Tax + insurance: −$771
• HOA: −$300
• Vac / Maint / Mgmt: −$641
• Net cashflow: $-756/mo
• Annual: $-9,075/yr
• Cap rate: 4.02%
• Cash-on-cash: -8.11%
• DSCR: 0.64
• 1% rule: 0.76%
• Cash to close: $111,969

Investor read

• This is a 2-bed/2.5-bath condo listed at $400k.
• At list price, monthly cash flow is $-756 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $266k (33.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $305k (23.7% below list).
• It's been on market 31 days — a 3% lower offer ($388k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $266k (33.4% below list) — sets the bar for cash-flow.
• In year one you build about $36k of equity ($3k loan paydown + $33k appreciation (8.3% local appreciation)).
• Location reads 62/100 on livability (#510 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+, crime B, employment B; Watch: amenities D, commute F, cost of living F.
• Lake Elsinore Unified (suburban): math 34% / reading 49% proficiency, ranked #210 of 517 in CA (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cottonwood Canyon Elementary (math 54% / reading 54%, grade C, #311 of 1,571 statewide, top 21%, 789 students, 50% FRL); Canyon Lake Middle (math 44% / reading 64%, grade B-, #78 of 498 statewide, top 15%, 955 students, 51% FRL); Elsinore High (math 24% / reading 75%, grade D+, #332 of 1,170 statewide, top 30%, 2,122 students, 71% FRL).
• Market conditions: Rents flat; 120 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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.
• 16 sale attempts since 8y 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.
• By year 2, paydown + projected appreciation supports a ~$58k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.0% vs local median 3.3% in Lake Elsinore — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 31 days. Have you received any prior offers? Is the seller open to a 33% 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?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.