602 - 710 Wimbledon Dr

Lodi, CA 95240

$18,000,000D-

576 bd · 448.0 ba · 36,365 sqft · Built 1978 · MultiFamily · Pending · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $134,009/mo
• Mortgage (P&I): −$94,394
• Tax + insurance: −$11,775
• HOA: −$0
• Vac / Maint / Mgmt: −$28,142
• Net cashflow: $-302/mo
• Annual: $-3,621/yr
• Cap rate: 6.27%
• Cash-on-cash: -0.07%
• DSCR: 1.00
• 1% rule: 0.74%
• Cash to close: $5,040,000

Investor read

• This is a 107 × 1-bed/1-bath units multifamily listed at $18.00M.
• At list price, monthly cash flow is $-302 ($-4k/yr) — negative. Per door: $-3/mo.
• To cash-flow at today's rent, offer at most $17.95M (0.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $13.40M (25.6% below list).
• It's been on market 62 days — a 6% lower offer ($16.92M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $13.40M (25.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $124k of loan paydown is wiped out by about $540k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#730 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A; Watch: schools C-, crime F, amenities F.
• Lodi Unified (urban): math 24% / reading 36% proficiency, ranked #325 of 517 in CA (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+2.1%/yr); 163 active listings in the ZIP; solid renter incomes; 3,779 units permitted in San Joaquin County in 2024 (0 in 5+ unit buildings).
• San Joaquin County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $7.45M; list at $18.00M implies a 142% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 3.0% in Lodi — 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 $134,009/mo this rent would consume 1958% of the median local household income ($82k/yr) (locally 1918% of renters already pay >50% of income on rent) — 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 62 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1978 — 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?