54125 E Residence Club Drive Dr Unit 22-02

La Quinta, CA 92253

$100,000F

3 bd · 3.5 ba · 3,365 sqft · Built 2013 · Other · Active · 242 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $683/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$167
• HOA: −$155
• Vac / Maint / Mgmt: −$144
• Net cashflow: $-306/mo
• Annual: $-3,672/yr
• Cap rate: 2.62%
• Cash-on-cash: -13.11%
• DSCR: 0.42
• 1% rule: 0.68%
• Cash to close: $28,000

Investor read

• This is a 3-bed/3.5-bath other listed at $100k. Condition is rated good.
• At list price, monthly cash flow is $-306 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $56k (44.3% below list).
• Meets the 1% rule at list price ($6k rent vs $100k).
• It's been on market 242 days — a 12% lower offer ($88k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $56k (44.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $691 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#694 in CA) — a working-class tenant base; expect higher turnover. Strengths: commute A-, employment B+, housing B+; Watch: amenities F, cost of living F, health & safety F.
• Coachella Valley Unified (rural): math 12% / reading 23% proficiency, ranked #481 of 517 in CA (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Westside Elementary (math 12% / reading 22%, grade F, #1,340 of 1,571 statewide, top 88%, 361 students, 91% FRL); Cahuilla Desert Academy Junior High (math 18% / reading 36%, grade F, #242 of 498 statewide, top 50%, 669 students, 79% FRL); Coachella Valley High (math 18% / reading 38%, grade F, #777 of 1,170 statewide, top 67%, 2,657 students, 88% FRL).
• Market conditions: Rents rising fast (+6.5%/yr); 1030 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals leasing fast (median 11d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 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: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.6% vs local median 3.4% in La Quinta — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $6,152/mo this rent would consume 74% of the median local household income ($99k/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 242 days. Have you received any prior offers? Is the seller open to a 44% 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.