16222 Monterey Ln #379

Huntington Beach, CA 92649

$159,000B-

2 bd · 2.0 ba · 1,368 sqft · Built 1970 · Manufactured · Active · 186 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,856/mo
• Mortgage (P&I): −$834
• Tax + insurance: −$265
• HOA: −$0
• Vac / Maint / Mgmt: −$600
• Net cashflow: $1,157/mo
• Annual: $13,890/yr
• Cap rate: 15.03%
• Cash-on-cash: 31.20%
• DSCR: 2.39
• 1% rule: 1.80%
• Cash to close: $44,520

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $159k. Condition is rated excellent.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $159k).
• It's been on market 186 days — a 12% lower offer ($140k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#306 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, commute A-; Watch: amenities C-, cost of living F, health & safety F.
• Ocean View (suburban): math 57% / reading 63% proficiency, ranked #207 of 1,400 in CA (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Harbour View Elementary (594 students, 38% FRL); Marine View Middle (568 students, 47% FRL); Marina High (math 59% / reading 83%, grade B+, #104 of 1,170 statewide, top 9%, 2,089 students, 45% FRL).
• Market conditions: Rents rising (+2.2%/yr); 149 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 65d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% 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.
• 4 sale attempts; this cycle's ask has dropped $41k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $100k; list at $159k implies a 59% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 2.2% rent growth), your $45k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.0% vs local median 1.8% in Huntington Beach — 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.

Questions for listing agent

• It's been on market 186 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.