29 Augusta Ln

Newport Beach, CA 92660

$6,950,000D-

4 bd · 2.5 ba · 2,886 sqft · Built 2026 · SingleFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,430/mo
• Mortgage (P&I): −$36,447
• Tax + insurance: −$6,173
• HOA: −$598
• Vac / Maint / Mgmt: −$2,820
• Net cashflow: $-32,608/mo
• Annual: $-391,292/yr
• Cap rate: 0.66%
• Cash-on-cash: -20.11%
• DSCR: 0.11
• 1% rule: 0.19%
• Cash to close: $1,946,000

Investor read

• This is a 4-bed/2.5-bath single-family listed at $6.95M.
• At list price, monthly cash flow is $-33k ($-391k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.19M (82.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.34M (80.7% below list).
• It's been on market 40 days — a 3% lower offer ($6.74M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.19M (82.9% below list) — sets the bar for cash-flow.
• In year one you build about $743k of equity ($48k loan paydown + $695k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#101 in CA, #3,645 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, employment A+, commute A; Watch: health & safety C-, cost of living F.
• Newport-Mesa Unified (urban): math 46% / reading 58% proficiency, ranked #106 of 517 in CA (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Abraham Lincoln Elementary (math 67%, 306 students, 32% FRL); Corona Del Mar High (math 55% / reading 63%, grade C+, #221 of 1,170 statewide, top 19%, 2,059 students, 20% FRL).
• Market conditions: Rents rising fast (+4.1%/yr); 157 active listings in the ZIP; 30 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 53% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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.
• 5 sale attempts since 4y 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.
• Current owner paid $3.50M; list at $6.95M implies a 99% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$1.19M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $13,430/mo this rent would consume 101% of the median local household income ($160k/yr) (locally 2633% of renters already pay >50% of income on rent) — 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 40 days. Have you received any prior offers? Is the seller open to a 83% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.