73850 Fairway Dr #14

Palm Desert, CA 92260

$210,000F

1 bd · 1.0 ba · 522 sqft · Built 1966 · Condo · Active · 140 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,670/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$350
• HOA: −$736
• Vac / Maint / Mgmt: −$351
• Net cashflow: $-868/mo
• Annual: $-10,413/yr
• Cap rate: 1.33%
• Cash-on-cash: -17.71%
• DSCR: 0.21
• 1% rule: 0.80%
• Cash to close: $58,800

Investor read

• This is a 1-bed/1.0-bath condo listed at $210k. Condition is rated good.
• At list price, monthly cash flow is $-868 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $84k (59.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $167k (20.5% below list).
• It's been on market 140 days — a 12% lower offer ($185k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (59.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 51/100 on livability (#1,050 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment B+, housing B; Watch: crime D, amenities F, commute F.
• Desert Sands Unified (suburban): math 31% / reading 56% proficiency, ranked #199 of 517 in CA (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Abraham Lincoln Elementary (585 students, 80% FRL); La Quinta Middle (math 24% / reading 24%, grade F, #277 of 498 statewide, top 73%, 754 students, 83% FRL); Palm Desert High (math 42% / reading 67%, grade C-, #256 of 1,170 statewide, top 24%, 2,050 students, 57% FRL) — zoned schools average 73% FRL vs 56% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 44% of rent.
• Market conditions: Rents rising (+1.6%/yr); 892 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals lingering (median 55d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 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 1.3% vs local median 3.3% in Palm Desert — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 140 days. Have you received any prior offers? Is the seller open to a 60% concession, seller financing, or rate buy-down credit?
• Built in 1966 — 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?
• 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 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen countertops — Worn appearance suggests minor repairs needed.
• Minor: Interior wall paint — Minor paint chipping indicates touch-up needed.