7025 Boulevard Dr

La Mesa, CA 91941

$5,450,000B-

480 bd · 640.0 ba · 12,356 sqft · Built 1956 · MultiFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $69,277/mo
• Mortgage (P&I): −$28,580
• Tax + insurance: −$3,607
• HOA: −$0
• Vac / Maint / Mgmt: −$14,548
• Net cashflow: $22,542/mo
• Annual: $270,499/yr
• Cap rate: 11.26%
• Cash-on-cash: 17.73%
• DSCR: 1.79
• 1% rule: 1.27%
• Cash to close: $1,526,000

Investor read

• This is a 20 × 24-bed/32.0-bath units multifamily listed at $5.45M.
• At list price, monthly cash flow is $23k ($270k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($69k rent vs $5.45M).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $38k of loan paydown is wiped out by about $164k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#137 in CA, #4,758 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment B+; Watch: crime C-, health & safety C-, cost of living F.
• Lemon Grove (suburban): math 25% / reading 25% proficiency, ranked #389 of 517 in CA (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 118 active listings in the ZIP; high-income renter base; 11,759 units permitted in San Diego County in 2024 (7,244 in 5+ unit buildings).
• San Diego County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 2y 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 $4.10M; 33% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 0.8% rent growth), your $1.53M cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.3% vs local median 2.0% in La Mesa — 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 $69,277/mo this rent would consume 721% of the median local household income ($115k/yr) (locally 1065% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Built in 1956 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.