LB 1107 Plan

Reno, NV 89512

$218,900F

3 bd · 2.0 ba · 1,288 sqft · Built — · Manufactured · Active · 992 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,446/mo
• Mortgage (P&I): −$1,778
• Tax + insurance: −$565
• HOA: −$956
• Vac / Maint / Mgmt: −$304
• Net cashflow: $-2,157/mo
• Annual: $-25,880/yr
• Cap rate: -1.34%
• Cash-on-cash: -27.26%
• DSCR: -0.21
• 1% rule: 0.43%
• Cash to close: $94,920

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $219k. Condition is rated poor.
• At list price, monthly cash flow is $-2k ($-26k/yr) — negative.
• To cash-flow at today's rent, offer at most $27k (87.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $145k (34.0% below list).
• It's been on market 992 days — a 12% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $27k (87.7% 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 78/100 on livability (#4 in NV, #2,370 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: cost of living D, crime F.
• Washoe County School District (urban): math 30% / reading 44% proficiency, ranked #6 of 17 in NV (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bernice Mathews Elementary (math 23% / reading 23%, grade F, #261 of 402 statewide, top 65%, 441 students, 100% FRL); Fred W. Traner Middle School (math 7% / reading 14%, grade F, #105 of 109 statewide, top 97%, 531 students, 100% FRL); Procter R. Hug High School (math 11% / reading 18%, grade F, #114 of 131 statewide, top 88%, 2,331 students, 100% FRL) — zoned schools average 100% FRL vs 42% district-wide (58 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 16% at this address vs 37% district-wide (-21 pts) — the specific schools serving this property underperform the Washoe County School District average; the district grade overstates school quality for this exact location.
• Watch-outs: HOA is 66% of rent.
• Market conditions: Rents flat; 70 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals lingering (median 73d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 4,085 units permitted in Washoe County in 2024 (1,634 in 5+ unit buildings).
• Washoe County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate -1.3% vs local median 2.6% in Reno — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 36% of the median local income ($48k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 992 days. Have you received any prior offers? Is the seller open to a 88% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — The siding appears weathered and possibly damaged.
• Major: roof — The roof appears to be in need of inspection and potential repair or replacement.
• Major: flooring — The flooring in the visible areas appears to be in poor condition, possibly damaged or worn.
• Major: interior walls/paint — The interior walls and paint appear to be in poor condition, possibly damaged or needing repainting.