9578 Sharondale

Calimesa, CA 92320

$362,500F

2 bd · 2.0 ba · 1,680 sqft · Built 1987 · Manufactured · Active · 137 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,362/mo
• Mortgage (P&I): −$1,901
• Tax + insurance: −$336
• HOA: −$270
• Vac / Maint / Mgmt: −$496
• Net cashflow: $-641/mo
• Annual: $-7,693/yr
• Cap rate: 4.17%
• Cash-on-cash: -7.58%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $101,500

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $362k.
• At list price, monthly cash flow is $-641 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $249k (31.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $236k (34.8% below list).
• It's been on market 137 days — a 12% lower offer ($319k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $236k (34.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 55/100 on livability (#865 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A-, employment B; Watch: health & safety D+, amenities F, commute F.
• Beaumont Unified (suburban): math 32% / reading 60% proficiency, ranked #168 of 517 in CA (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brookside Elementary (706 students, 68% FRL); Mountain View Middle (935 students, 68% FRL); Beaumont Senior High (math 36% / reading 63%, grade D, #352 of 1,170 statewide, top 31%, 3,328 students, 62% FRL) — zoned schools average 66% FRL vs 45% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 66 active listings in the ZIP; 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.
• 2 sale attempts since 17y 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 $155k; list at $362k implies a 134% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.2% vs local median 6.7% in Calimesa — 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 137 days. Have you received any prior offers? Is the seller open to a 35% 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?
• 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 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.