1075 Brookline Rd Unit M9-220E

Seal Beach, CA 90740

$329,000D+

2 bd · 1.0 ba · 1,150 sqft · Built 1962 · Condo · Active · 165 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,507/mo
• Mortgage (P&I): −$1,725
• Tax + insurance: −$615
• HOA: −$716
• Vac / Maint / Mgmt: −$736
• Net cashflow: $-285/mo
• Annual: $-3,426/yr
• Cap rate: 5.49%
• Cash-on-cash: -2.85%
• DSCR: 0.87
• 1% rule: 1.07%
• Cash to close: $92,120

Investor read

• This is a 2-bed/1.0-bath condo listed at $329k. Condition is rated average.
• At list price, monthly cash flow is $-285 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $288k (12.6% below list).
• Meets the 1% rule at list price ($4k rent vs $329k).
• It's been on market 165 days — a 12% lower offer ($290k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $288k (12.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#695 in CA) — a working-class tenant base; expect higher turnover. Strengths: employment A+, housing A-; Watch: health & safety D, crime F, amenities F.
• Los Alamitos Unified (suburban): math 57% / reading 82% proficiency, ranked #52 of 517 in CA (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Los Alamitos High (math 60% / reading 84%, grade B+, #92 of 1,170 statewide, top 8%, 3,055 students, 15% FRL).
• Watch-outs: flood insurance adds $66/mo; HOA is 20% of rent.
• Market conditions: Rents rising fast (+4.8%/yr); 125 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals lingering (median 96d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 73% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• 2 sale attempts; this cycle's ask has dropped $50k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.5% vs local median 3.2% in Seal 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.
• At $3,507/mo this rent would consume 49% of the median local household income ($85k/yr) — 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 165 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — dated design
• Minor: bath cabinets — dated design
• Moderate: exterior siding — moderate wear