174 Mira Del Oeste

San Clemente, CA 92673

$690,000D

2 bd · 2.0 ba · 1,692 sqft · Built 1974 · Condo · Active · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,154/mo
• Mortgage (P&I): −$3,618
• Tax + insurance: −$1,150
• HOA: −$300
• Vac / Maint / Mgmt: −$1,082
• Net cashflow: $-997/mo
• Annual: $-11,963/yr
• Cap rate: 4.56%
• Cash-on-cash: -6.19%
• DSCR: 0.72
• 1% rule: 0.75%
• Cash to close: $193,200

Investor read

• This is a 2-bed/2.0-bath condo listed at $690k.
• At list price, monthly cash flow is $-997 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $546k (20.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $515k (25.3% below list).
• It's been on market 121 days — a 12% lower offer ($607k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $515k (25.3% below list) — sets the bar for 1% rule.
• In year one you build about $36k of equity ($5k loan paydown + $31k appreciation (4.5% local appreciation)).
• Location reads 63/100 on livability (#473 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, crime B+; Watch: amenities D+, commute F, cost of living F.
• Capistrano Unified (suburban): math 50% / reading 72% proficiency, ranked #64 of 517 in CA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Truman Benedict Elementary (600 students, 18% FRL); Bernice Ayer Middle (883 students, 40% FRL); San Clemente High (math 51% / reading 78%, grade B-, #165 of 1,170 statewide, top 15%, 2,838 students, 36% FRL).
• Market conditions: Rents rising (+3.1%/yr); 53 active listings in the ZIP; 25 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% 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.
• By year 2, paydown + projected appreciation supports a ~$58k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.6% vs local median 1.5% in San Clemente — 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.
• This rent runs 34% of the median local income ($182k/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 121 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are A-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?