21682 Ocean Vista Dr Unit A

Laguna Beach, CA 92651

$975,000D-

2 bd · 1.0 ba · 775 sqft · Built 1960 · Condo · Active · 142 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,847/mo
• Mortgage (P&I): −$5,113
• Tax + insurance: −$1,179
• HOA: −$696
• Vac / Maint / Mgmt: −$1,228
• Net cashflow: $-2,368/mo
• Annual: $-28,418/yr
• Cap rate: 3.38%
• Cash-on-cash: -10.41%
• DSCR: 0.54
• 1% rule: 0.60%
• Cash to close: $273,000

Investor read

• This is a 2-bed/1.0-bath condo listed at $975k.
• At list price, monthly cash flow is $-2k ($-28k/yr) — negative.
• To cash-flow at today's rent, offer at most $557k (42.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $585k (40.0% below list).
• It's been on market 142 days — a 12% lower offer ($858k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $557k (42.9% below list) — sets the bar for cash-flow.
• In year one you build about $67k of equity ($7k loan paydown + $60k appreciation (6.2% local appreciation)).
• Location reads 68/100 on livability (#276 in CA) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A; Watch: commute D+, amenities F, cost of living F.
• Laguna Beach Unified (suburban): math 25% / reading 25% proficiency, ranked #343 of 517 in CA (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: El Morro Elementary (416 students, 23% FRL); Thurston Middle (537 students, 21% FRL); Laguna Beach High (930 students, 20% FRL).
• Market conditions: Rents soft (-0.2%/yr); 228 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 48% 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.
• 14 sale attempts since 22y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $795k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$107k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.4% vs local median 0.6% in Laguna 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 $5,847/mo this rent would consume 48% of the median local household income ($147k/yr) (locally 1265% 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 142 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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?